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. Describe biased expectations in a behavioral finance context.






2. What are wealth taxes.






3. Human capital is sometimes referred to as what?






4. What are ways that individuals can avoid probate?






5. Describe the different types of double taxation conflicts.






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






7. Define tax drag.






8. As age increases..






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






10. What is the most common estate planning tool?






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






12. As probability of death increases...






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






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






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






16. Describe an individualistic investor personality type.






17. Why do individuals often take steps to avoid probate?






18. Any amount above core capital is considered what?






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






20. What is mortality risk?






21. What are typical characteristics of active wealth creators?






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






23. Describe the different types of double taxation conflicts.






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


25. What are the different retirment risks and how can they be hedged?






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






27. What are the main characteristics of fixed annuities?


28. characteristics of foundation stage






29. characteristics of foundation stage






30. characteristics of spontaneous investor


31. What are typical characteristics of passive recipients of wealth?






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






33. Equation for total wealth.






34. What is HIFO accounting?






35. characteristics of methodical investor






36. characteristics of individualist investor






37. benefits of IPS to client






38. Describe a spontaneous investor personality type.






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






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






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






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






43. What are the equity holding life risk attributes for an investor?






44. Any amount above core capital is considered what?






45. As wealth increases...






46. What are typical characteristics of passive recipients of wealth?






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






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






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






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