1 | P a g e | © copyright 2024/2025 | Grade A+
AWMA Questions & 100% Correct Answers
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 of the Internal Revenue Code (IRC)—is
bandied about by real estate agents, title companies, investors, and
more. Some people even insist on making it into a verb, as in, "Let's
1031 that building for another."
Emotional Intelligence
✓ ~~> The ability to perceive and control one's own emotions and use
those emotions to guide thought and behavior.
Emotional Perception
✓ ~~> The ability to notice and accurately express emotions.
Master01 | September, 2024/2025 | Latest update
, 2 | P a g e | © copyright 2024/2025 | Grade A+
Ex: A client has been angry at his meetings w/his adviser. The client realizes his
anger stems from his work and is lashing out at his adviser's financial
suggestions.
Emotional Facilitation
✓ ~~> Describes how individuals use emotions to assist thinking,
including responding to changes in their environment and in
themselves.
Ex: A client tells her planner that she prefers afternoon meetings at the
planner's office. She's aware that she'll be in a BETTER MOOD and away from
distractions.
Emotional Understanding
✓ ~~> Understanding and analyzing emotions or employing emotional
knowledge.
Emotional Regulation
Master01 | September, 2024/2025 | Latest update
, 3 | P a g e | © copyright 2024/2025 | Grade A+
✓ ~~> Regulation of emotions to promote emotional and intellectual
growth. Openness and understanding of feelings permit the individual
to learn to control their feelings and dictate expression when
appropriate.
Total Risk
✓ ~~> The combination of systematic risk and unsystematic risk. It is
measured by the standard deviation (variability).
Systematic Risk
✓ ~~> The uncertainty of return inherent in the "system" of which any
asset is a part. Found in nearly all securities because comparable
securities generally move together in a systematic manner. It is non-
diversifiable.
- Purchasing power risk
- Reinvestment risk
- Interest rate risk
- Market risk
- Exchange rate risk
Purchasing Power (Inflation) Risk
Master01 | September, 2024/2025 | Latest update
, 4 | P a g e | © copyright 2024/2025 | Grade A+
✓ ~~> The risk of one's purchasing power decreasing as a result of an
increase in inflation. Inflation is most devastating to bond prices since
the interest and principal are usually fixed in terms of dollar amounts.
Increase inflation will send bond prices downward.
Inflation rate is pro-cyclical (moving in the same direction as the economy as
a whole) but will lag by a year or more.
Reinvestment Risk
✓ ~~> The risk that market interest rates have decreased at the time
payments from an investment are received. An investor is forced to
reinvest his payment amount at a time when rates are not as favorable
as they may have been previously.
Market Risk
✓ ~~> This risk stems from factors independent of any particular
security. Factors include political events, broad economic and social
changes, and the mood of the investing public.
It is systemic in the sense that the price of any security can rise or fall in
reaction to these larger company's financial condition.
Exchange Rate Risk (Currency Risk)
Master01 | September, 2024/2025 | Latest update
AWMA Questions & 100% Correct Answers
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 of the Internal Revenue Code (IRC)—is
bandied about by real estate agents, title companies, investors, and
more. Some people even insist on making it into a verb, as in, "Let's
1031 that building for another."
Emotional Intelligence
✓ ~~> The ability to perceive and control one's own emotions and use
those emotions to guide thought and behavior.
Emotional Perception
✓ ~~> The ability to notice and accurately express emotions.
Master01 | September, 2024/2025 | Latest update
, 2 | P a g e | © copyright 2024/2025 | Grade A+
Ex: A client has been angry at his meetings w/his adviser. The client realizes his
anger stems from his work and is lashing out at his adviser's financial
suggestions.
Emotional Facilitation
✓ ~~> Describes how individuals use emotions to assist thinking,
including responding to changes in their environment and in
themselves.
Ex: A client tells her planner that she prefers afternoon meetings at the
planner's office. She's aware that she'll be in a BETTER MOOD and away from
distractions.
Emotional Understanding
✓ ~~> Understanding and analyzing emotions or employing emotional
knowledge.
Emotional Regulation
Master01 | September, 2024/2025 | Latest update
, 3 | P a g e | © copyright 2024/2025 | Grade A+
✓ ~~> Regulation of emotions to promote emotional and intellectual
growth. Openness and understanding of feelings permit the individual
to learn to control their feelings and dictate expression when
appropriate.
Total Risk
✓ ~~> The combination of systematic risk and unsystematic risk. It is
measured by the standard deviation (variability).
Systematic Risk
✓ ~~> The uncertainty of return inherent in the "system" of which any
asset is a part. Found in nearly all securities because comparable
securities generally move together in a systematic manner. It is non-
diversifiable.
- Purchasing power risk
- Reinvestment risk
- Interest rate risk
- Market risk
- Exchange rate risk
Purchasing Power (Inflation) Risk
Master01 | September, 2024/2025 | Latest update
, 4 | P a g e | © copyright 2024/2025 | Grade A+
✓ ~~> The risk of one's purchasing power decreasing as a result of an
increase in inflation. Inflation is most devastating to bond prices since
the interest and principal are usually fixed in terms of dollar amounts.
Increase inflation will send bond prices downward.
Inflation rate is pro-cyclical (moving in the same direction as the economy as
a whole) but will lag by a year or more.
Reinvestment Risk
✓ ~~> The risk that market interest rates have decreased at the time
payments from an investment are received. An investor is forced to
reinvest his payment amount at a time when rates are not as favorable
as they may have been previously.
Market Risk
✓ ~~> This risk stems from factors independent of any particular
security. Factors include political events, broad economic and social
changes, and the mood of the investing public.
It is systemic in the sense that the price of any security can rise or fall in
reaction to these larger company's financial condition.
Exchange Rate Risk (Currency Risk)
Master01 | September, 2024/2025 | Latest update
