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






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






3. What is loss aversion?






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






5. What are investment objectives and constraints?






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






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


8. What are the main characteristics of chritable gifts?






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






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






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






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






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






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


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






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






17. situational profiling - considerations






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






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






20. Equation for total wealth.






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






22. What are the different global tax regimes and their respective ordinary income tax structure?






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






24. Human capital is sometimes referred to as what?






25. characteristics of foundation stage






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


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






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






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






30. What are the different stages of life?






31. What are the benefits of an IPS to the adviser?






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






33. What are the main characteristics of variable annuities?


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






35. What are the main types of investors?






36. Why would an individual try to use generation skipping in estate planning?






37. What are the disadvantages of public exchange funds for low basis stock?






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






39. As wealth increases...






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






41. Describe asset segregation in a behavioral finance context.






42. How is mortality risk typically hedged?






43. What are the main characteristics of the foundation phase of life?






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






45. What are the main types of investors?






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






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






48. benefits of IPS to client






49. Who is responsible for gains/losses in a taxable (accrual taxation) account?






50. characteristics of cautious investor