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






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






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






4. benefits of IPS to manager






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






6. What are the main types of investors?






7. Describe a spontaneous investor personality type.






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






9. As wealth increases...






10. characteristics of distribution phase






11. What are the two sources of wealth?






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






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

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14. 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?






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






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






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






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






19. What are the diffferent types of tax jurisdictions?






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






21. Describe the different types of double taxation conflicts.






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






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






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






25. four types of investors






26. typical IPS elements






27. Describe asset segregation in a behavioral finance context.






28. characteristics of methodical investor






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






30. sources of wealth






31. characteristics of spontaneous investor

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






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






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






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






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






37. Define capital gains taxes.






38. typical IPS elements






39. What is human capital?






40. Describe the different types of double taxation conflicts.






41. Equation for total wealth.






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






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

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






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






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






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






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






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






50. Investor questionnaires help to determine what?







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