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Private Wealth Management

Instructions:
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. Why do individuals often take steps to avoid probate?






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






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






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






5. Describe an individualistic investor personality type.






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






7. Equation for total wealth.






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






9. characteristics of individualist investor






10. characteristics of foundation stage






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

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






13. What is measure of wealth?






14. Describe a methodical investor personality type.






15. What is intestate?






16. Any amount above core capital is considered what?






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






18. What happens to both tax drag $ and tax drag % with holding period changes and return changes?






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






20. situational profiling - considerations






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






22. Describe a spontaneous investor personality type.






23. situational profiling - considerations






24. What are typical characteristics of active wealth creators?






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






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






27. benefits of IPS to client






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






29. characteristics of maintenance phase






30. Describe asset segregation in a behavioral finance context.






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






32. Investor questionnaires help to determine what?






33. What are the diffferent types of tax jurisdictions?






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






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

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






37. Human capital is sometimes referred to as what?






38. What are the diffferent types of tax jurisdictions?






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






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






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






42. Describe biased expectations in a behavioral finance context.






43. characteristics of individualist investor






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






45. Human capital is sometimes referred to as what?






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






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






48. As wealth increases...






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






50. situational profiling

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