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






2. template for return objective






3. As probability of death increases...






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






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






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






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






8. As age increases..






9. What is human capital?






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






11. What are ways that individuals can avoid probate?






12. Describe a cautious investor personality type.






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






14. Describe the equity holding life three stages from the perspective of the stock.






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






16. characteristics of foundation stage






17. situational profiling


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






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






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






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






22. What is human capital?






23. Investor questionnaires help to determine what?






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






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






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






27. What are ways that individuals can avoid probate?






28. What is the general relationship between tax drag% and tax rate with accrual taxes; and as investment horizon increases and return increases?






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


30. characteristics of spontaneous investor


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






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






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






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






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






36. What are the psychological issues of low basis stock held by an executive?






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






38. benefits of IPS to client






39. Describe a spontaneous investor personality type.






40. What is measure of wealth?






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






42. What is measure of wealth?






43. Define tax drag.






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






45. template for return objective






46. Describe an individualistic investor personality type.






47. characteristics of cautious investor


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


49. characteristics of methodical investor






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