AWMA Questions & 100% Correct Answers

Baby boomers and older GenXers as compared to millennials and younger Gen Xers- -Are likely to be advised by a millennial adviser -Have financial planning needs that has stayed relatively the same over many years -Have not experienced significant bear markets -Are generally seeking many mo...

Capital Market Line ~~> A graphical representation of the relationship between risk and return, where risk is measured by standard deviation; the CML includes the concept of a risk-free rate of return Jenson Performance index ~~> Used in comparing performance money managers on a ris...

Which one of the following characteristics is more correct concerning younger wealthy individuals (millennials and GenXers)? A) Younger wealthy individuals are seeking more technological options in financial planning. B) Younger wealthy individuals have not experienced significant bear marke...

Of the following practical dimensions of emotional intelligence, which is the most complex and difficult to attain? A)Regulation of adviser and/or client emotions B)Integration of emotional intelligence into thinking C)Perception and differentiation between emotions D)Understanding and explana...

The top three specialty areas in which high net worth individuals seek advice include all of the following except A)retirement planning. B)tax planning. C)estate planning. D)investment planning. ~~> A) The top three specialty areas in which high net worth individuals seek advice are ta...

3 key elements invt strategy ~~> identifiable goal, a method to attain a goal, the competencies and resources to sustain the strategy What is the difference between investment strategy and investment policy? ~~> investment policy sets forth the financial goals of the client, investm...

Which one of the following is NOT an allowable itemized deduction in computing the alternative minimum taxable income? A) Charitable contribution deduction B) State and local income taxes C) Qualified housing interest D) Investment interest expense ~~> B. State and local income taxes ar...

The provision that certain mutual fund policies cannot be changed without shareholder approval is addressed in the A) Investment Company Act of 1940. B) Securities Exchange Act of 1934. C) Investment Advisers Act of 1940. D) Securities Act of 1933. ~~> A) Investment Company Act of 1940. ...

If ABC Corporation has net profits of $100,000 and distributes $50,000 as dividends, what is its taxable income? A. $0 B. $25,000 C. $50,000 D. $100,000 ~~> The net profits of a corporation are subject to federal income taxation. This tax is levied on corporate taxable income before...

Intestate ~~> Dying without a will. The distribution of their assets will be determined by a probate court. 1031 Exchange ~~> A swap of one real estate investment property for another that allows capital gains taxes to be deferred. The term—which gets its name from Section 1031 ...