Test your basic knowledge |

Private Wealth Management

Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers to obvious but it re-enforces your understanding as you take the test each time.
1. What are the 3 categories of investors when discussing concentrated positions?






2. What are the benefits of an IPS to the adviser?






3. What are the diffferent types of tax jurisdictions?






4. What is mortality risk?






5. Why do individuals often take steps to avoid probate?






6. What is the difference b/t a required and desired return objective?






7. How is demand for insurance affected by risk tolerance - financial wealth - probability of death - age - and bequest desire?






8. What risks must be considered when discussing each concentrated investor category?






9. What is the difference b/t a required and desired return objective?






10. Why would an individual try to use generation skipping in estate planning?






11. What are the different methods of relief from double taxation?






12. What are the different retirment risks and how can they be hedged?






13. characteristics of foundation stage






14. How does the nature of human capital affect the demand for life insurance?






15. Describe a cautious investor personality type.






16. What are the main characteristics of the maintenance phase of life?






17. four types of investors






18. What are the different global tax regimes and their respective ordinary income tax structure?






19. What is an equity collar? What is the purpose of the underlying positions






20. Any amount above core capital is considered what?






21. What are the two sources of wealth?






22. stages of life






23. What are typical characteristics of active wealth creators?






24. What are the disadvantages of hedging for low basis stock?






25. What are the psychological issues of low basis stock held by an investor?






26. characteristics of cautious investor






27. Describe biased expectations in a behavioral finance context.






28. What are the main characteristics of fixed annuities?






29. What are the diversification techniques for low basis stock?






30. In contrast to standard finance (MPT) - behavioral finance assumes individuals do what?






31. characteristics of individualist investor






32. As probability of death increases...






33. What is core capital?






34. characteristics of spontaneous investor






35. What are the main characteristics of fixed annuities?






36. What are the diffferent types of tax jurisdictions?






37. What are the benefits of an IPS to the client?






38. stages of life






39. The client's risk tolerance (mostly willingness) is affected by what personal characteristics?






40. Describe a methodical investor personality type.






41. What is human capital?






42. What is the most common estate planning tool?






43. Why do individuals often take steps to avoid probate?






44. sources of wealth






45. characteristics of distribution phase






46. What are the different retirment risks and how can they be hedged?






47. Why would an individual try to use generation skipping in estate planning?






48. What are the main characteristics of chritable gifts?






49. Define tax drag.






50. What should an investor use in mean-variance optimization