Wealth Manager Test Set 1

furniture ✘ vehicles ✘ household goods ✘ None of these ✔

The practice of wealth management is customized because it focuses on developing clients specific goals ✘ The practice of a wealth manager is customized because success is measured performance relative to other wealth managers ✘ The practice of a wealth manager is customized because the success is measured by client ✘ None of these ✔

Educate the client about the process in general ✘ Explain all possible investment alternatives ✘ Explain the purpose of choosing an investment strategy ✘ All of these ✔

individual ✘ collective ✘ weighted ✘ linear ✔

equal to systematic risk plus diversifiable risk ✘ equal to systematic risk plus unavoidable risk ✘ equal to avoidable risk plus diversifiable risk ✘ equal to systematic risk plus no diversifiable risk ✔

infinitely divisible ✘ finitely divisible ✘ a & b ✘ all of correct ✔

future prices ✘ current prices ✘ quarter prices ✘ none of these ✔

HML portfolio ✘ R portfolio ✘ subtracted portfolio ✘ ML portfolio ✔

geometric mean ✘ calculus mean ✘ arithmetic mean ✘ arithmetic median ✔

government bonds ✘ common stock ✘ preferred stock ✘ real estate ✔