Wealth Management Final Exam – Comprehensive Portfolio, Tax, Retirement & Estate
Planning Mock Test
Which of the following is a characteristic of a real estate limited partnership?
A)
Publicly traded
B)
Can be leveraged in most cases
C)
Generally invested in a single property
D)
Partnership is involved in property management - correct answer ✔✔d,
If a mutual fund's cash position is high, a contrarian investor is likely to do which one of the
following with respect to the overall market?
A)
Sell
B)
Sell short
C)
Buy0
D)
Remain in a hold position - correct answer ✔✔c (changed this answer to the correct
onewhichis:c)
When a bond is selling for its par value, its current yield
A)
,is equal to yield to maturity
B)
and yield to maturity are both equal to 1
C)
is greater than yield to maturity
D)
is less than yield to maturity - correct answer ✔✔a
In what form of asset allocation, if any, do changes in capital market conditions consistently
result in the rebalancing of assets within a portfolio?
A)
Passive asset allocation
B)
Integrated asset allocation
C)
Strategic asset allocation
D)
Tactical asset allocation - correct answer ✔✔d
A process that facilitates the transfer of a decedent's estate to named beneficiaries is
A)
probate
B)
intestation
C)
testation
, D)
operation of law - correct answer ✔✔guessed a (but now think it is D)
A qualified plan designed for self-employed individuals and their employees is a
A)
Section 457 plan
B)
money purchase pension plan
C)
Keogh plan
D)
Section 401(k) plan - correct answer ✔✔c
Investors are prohibited from selling stock at a loss, claiming the tax benefits, and then
repurchasing the same stock within 30 days either before or after the sale. This is known as
A)
the constructive receipt theory
B)
the wash sale rule
C)
the laddering concept
D)
the stop loss rule - correct answer ✔✔b
**Which of the following statements regarding formula investing is/are CORRECT?
Averaging down involves an investor reducing the cost basis of the investment in 1 security by
buying more shares as the price of that security decreases.
Planning Mock Test
Which of the following is a characteristic of a real estate limited partnership?
A)
Publicly traded
B)
Can be leveraged in most cases
C)
Generally invested in a single property
D)
Partnership is involved in property management - correct answer ✔✔d,
If a mutual fund's cash position is high, a contrarian investor is likely to do which one of the
following with respect to the overall market?
A)
Sell
B)
Sell short
C)
Buy0
D)
Remain in a hold position - correct answer ✔✔c (changed this answer to the correct
onewhichis:c)
When a bond is selling for its par value, its current yield
A)
,is equal to yield to maturity
B)
and yield to maturity are both equal to 1
C)
is greater than yield to maturity
D)
is less than yield to maturity - correct answer ✔✔a
In what form of asset allocation, if any, do changes in capital market conditions consistently
result in the rebalancing of assets within a portfolio?
A)
Passive asset allocation
B)
Integrated asset allocation
C)
Strategic asset allocation
D)
Tactical asset allocation - correct answer ✔✔d
A process that facilitates the transfer of a decedent's estate to named beneficiaries is
A)
probate
B)
intestation
C)
testation
, D)
operation of law - correct answer ✔✔guessed a (but now think it is D)
A qualified plan designed for self-employed individuals and their employees is a
A)
Section 457 plan
B)
money purchase pension plan
C)
Keogh plan
D)
Section 401(k) plan - correct answer ✔✔c
Investors are prohibited from selling stock at a loss, claiming the tax benefits, and then
repurchasing the same stock within 30 days either before or after the sale. This is known as
A)
the constructive receipt theory
B)
the wash sale rule
C)
the laddering concept
D)
the stop loss rule - correct answer ✔✔b
**Which of the following statements regarding formula investing is/are CORRECT?
Averaging down involves an investor reducing the cost basis of the investment in 1 security by
buying more shares as the price of that security decreases.
