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






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






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






4. What is core capital?






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






6. Investor questionnaires help to determine what?






7. What is human capital?






8. What is intestate?






9. Describe biased expectations in a behavioral finance context.






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






11. Describe the different types of double taxation conflicts.






12. situational profiling - considerations






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


14. What are the advantages of the monte carlo approach to portfolio construction?






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






16. characteristics of cautious investor


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






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






19. What are the different stages of life?






20. Describe an individualistic investor personality type.






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






22. What are the advantages of private exchange funds for low basis stock?






23. situational profiling - considerations






24. characteristics of maintenance phase






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






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






27. 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?






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


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






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






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






32. How is mortality risk typically hedged?






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


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






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






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






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






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






39. What are the two sources of wealth?






40. stages of life






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






42. What are the main characteristics of chritable gifts?






43. What are the main characteristics of fixed annuities?


44. What is human capital?






45. What are the main types of investors?






46. benefits of IPS to manager






47. Human capital is sometimes referred to as what?






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






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






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