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 obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Calculating the required return component is driven by what 2 elements?






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






3. Equation for total wealth.






4. characteristics of maintenance phase






5. What is typically considered when imposing an exit tax?






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






7. What are the problems that financial advisers can face with low basis stock?






8. What is the eifference in willingness to take risk between active and passive wealth creators?






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






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






11. What is core capital?






12. What are the main characteristics of the accumulation phase of life?






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






14. What are the psychological issues of low basis stock held by an entrepreneur?






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






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






17. Living expenses in retirment can be referred to as what?






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






19. What are the advantages of completion portfolios for low basis stock?






20. What are typical characteristics of active wealth creators?






21. Describe a cautious investor personality type.






22. What is tax alpha?






23. characteristics of foundation stage






24. What are the two sources of wealth?






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

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






27. An investor's ability to take risk depends on what?

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28. Describe an individualistic investor personality type.






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






30. How is mortality risk typically hedged?






31. As desire to leave an estate increases...






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






33. What are the main characteristics of the distribution phase of life?






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






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






36. As age increases..






37. characteristics of cautious investor

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38. characteristics of spontaneous investor

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39. What is typically considered when imposing an exit tax?






40. benefits of IPS to client






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






42. 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?






43. Describe biased expectations in a behavioral finance context.






44. What are typical characteristics of active wealth creators?






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






46. Generally - how does portfolio size - liquidity - time horizon - and/or importance of spending affect ability to tolerate risk?






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






48. What is the difference between a deterministic approach and a monte carlo approach to portfolio construction?






49. characteristics of accumulation phase






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