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 psychological issues of low basis stock held by an investor?






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






3. What is intestate?






4. All costs associated with probate are born by whom?






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






6. What is the reinvestment caveat when considering tax loss harvesting?






7. What is the person called that transfers assets through a will?






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






9. What are the two sources of wealth?






10. Describe biased expectations in a behavioral finance context.






11. What are the four broad categories of investor personality types (BB&K)?






12. What is another name for a variable prepaid forward and What is its main purpose?






13. What are ways that individuals can avoid probate?






14. An investor's willingness to take risk is determined by what?






15. Describe a cautious investor personality type.






16. What are the equity holding life risk attributes for an executive?






17. situational profiling - considerations






18. As wealth increases...






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






20. What is the general relationship b/t a client's perception of wealth and risk willingness?






21. What are the main types of investors?






22. What are the disadvantages of completion portfolios for low basis stock?






23. When calculating a required return - you typically must identify what?






24. characteristics of methodical investor






25. What are the equity holding life risk attributes for an executive?






26. Calculating the required return component is driven by what 2 elements?






27. How is mortality risk typically hedged?






28. Any amount above core capital is considered what?






29. What are the steps involved in creating an IPS?






30. Human capital is sometimes referred to as what?






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






32. What are the advantages of public exchange funds for low basis stock?






33. characteristics of cautious investor






34. When dealing with low basis stock - emotional issues can arise from what?






35. What are the advantages of an outright sale of low basis stock?






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






37. What are the 3 categories of investors when discussing concentrated positions?






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






39. What are the disadvantages of an outright sale of low basis stock?






40. What are the diffferent types of estate ownership rights?






41. Why would someone want to use a valuation discount?






42. When should you use a tax-exempt versus a tax-deferred account?






43. What are the disadvantages of public exchange funds for low basis stock?






44. psychological profiling






45. What is the general relationship b/t a client's perception of wealth and risk willingness?






46. If human capital is equity-like/fixed-income like - how should you generally allocate financial assets?






47. Equation for total wealth.






48. Why would someone want to use a valuation discount?






49. What is the general relationship between tax drag% and tax rate when capital gains taxes are deferred and B=1; and as investment horizon increases and return increases?






50. What is loss aversion?