AWMA Exam 3 Questions & 100% Correct
Answers
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 tax, estate, and investment planning. Retirement planning is not as
necessary, but may be a minor concern. Mod 1
Concerning behavioral biases and as compared to the mass affluent, high net worth
individuals have
A) more money-avoidance beliefs.
B) less of a tendency for loss aversion.
C) fewer money status beliefs.
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2 | P a g e | © copyright 2024/2025 | Grade A+
D) more external locus of control.
~~> B) The wealthy are more likely than other investors to have a positive
view about money. As compared to the mass affluent (with more money biases and
some found to be earning less as a result), the high net worth individuals were
found to have fewer money-avoidance beliefs, more money-status beliefs, a more
internal locus of control, less of a tendency for loss aversion, and significantly
more attribution of their financial success to two factors: a drive to increase their
wealth and a commitment to follow their passions. Mod 1
In the wealth allocation framework, the liquid asset allocation would most likely
include which one of the following assets?
A)Dividend stocks B)Preferred stocks
C) Managed global bonds D)Annuities
, ~~> D) This part of the portfolio contains forms of insurance, such as
insurance, home mortgage, annuities, hedging, direct gold, and cash and cash
equivalents. Mod 1
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3 | P a g e | © copyright 2024/2025 | Grade A+
In the wealth allocation framework, the risky asset allocation would most likely
include
A) investment real estate.
B) hedges. C)large-cap ETFs.
D) balanced mutual funds.
~~> A) Risky assets can include many different vehicles, such as
investment real estate, a small business, concentrated stock and stock options,
, global small company stocks, some commodities, aggressive inflation protectors,
and out of the money calls/puts on currencies or bonds. Mod 1
In the wealth allocation framework, the main diversified asset allocation would
most likely include
A)annuities. dB)hedges.
C) managed dglobal dbonds.
D) home dmortgage
d
Master01 d| d
d
| dLatest dupdate
d
4 d| dP da dg de d| d© dcopyright d2024/2025 d| dGrade dA+
~~> C) dThe dmain ddiversified dassets dcategory, dthe dlargest dportion dof dthe
dportfolio, dis dstill drelatively dlow drisk; dit dcan dcontain dmanaged dincome
dinvestments dlike ddividend dstocks, dpreferred dstocks, down dcompany dstock d(unless
drisky), dand dmanaged dglobal dbonds. dMod d1
Answers
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 tax, estate, and investment planning. Retirement planning is not as
necessary, but may be a minor concern. Mod 1
Concerning behavioral biases and as compared to the mass affluent, high net worth
individuals have
A) more money-avoidance beliefs.
B) less of a tendency for loss aversion.
C) fewer money status beliefs.
,Master01 |
| Latest update
2 | P a g e | © copyright 2024/2025 | Grade A+
D) more external locus of control.
~~> B) The wealthy are more likely than other investors to have a positive
view about money. As compared to the mass affluent (with more money biases and
some found to be earning less as a result), the high net worth individuals were
found to have fewer money-avoidance beliefs, more money-status beliefs, a more
internal locus of control, less of a tendency for loss aversion, and significantly
more attribution of their financial success to two factors: a drive to increase their
wealth and a commitment to follow their passions. Mod 1
In the wealth allocation framework, the liquid asset allocation would most likely
include which one of the following assets?
A)Dividend stocks B)Preferred stocks
C) Managed global bonds D)Annuities
, ~~> D) This part of the portfolio contains forms of insurance, such as
insurance, home mortgage, annuities, hedging, direct gold, and cash and cash
equivalents. Mod 1
Master01 |
| Latest update
3 | P a g e | © copyright 2024/2025 | Grade A+
In the wealth allocation framework, the risky asset allocation would most likely
include
A) investment real estate.
B) hedges. C)large-cap ETFs.
D) balanced mutual funds.
~~> A) Risky assets can include many different vehicles, such as
investment real estate, a small business, concentrated stock and stock options,
, global small company stocks, some commodities, aggressive inflation protectors,
and out of the money calls/puts on currencies or bonds. Mod 1
In the wealth allocation framework, the main diversified asset allocation would
most likely include
A)annuities. dB)hedges.
C) managed dglobal dbonds.
D) home dmortgage
d
Master01 d| d
d
| dLatest dupdate
d
4 d| dP da dg de d| d© dcopyright d2024/2025 d| dGrade dA+
~~> C) dThe dmain ddiversified dassets dcategory, dthe dlargest dportion dof dthe
dportfolio, dis dstill drelatively dlow drisk; dit dcan dcontain dmanaged dincome
dinvestments dlike ddividend dstocks, dpreferred dstocks, down dcompany dstock d(unless
drisky), dand dmanaged dglobal dbonds. dMod d1
