AI in Wealth Management Quiz

Answers and explanations appear as you take the quiz.

1. What does a robo-advisor primarily automate?
   • Building and rebalancing diversified investment portfolios
   • Cooking and food delivery
   • Filing criminal lawsuits
   • Designing office furniture
2. What does retrieval provide to an advisor copilot using RAG?
   • A guarantee that the response is correct and suitable
   • Relevant account information and approved documents as context for generating a response
   • A replacement for the advisor’s fiduciary responsibilities
   • A prediction of future market returns
3. What fiduciary obligation does SEC guidance describe for robo-advisers that are registered investment advisers?
   • They must guarantee positive investment returns
   • They must use only human-written research
   • They must provide advice consistent with the fiduciary duty owed to clients
   • They may ignore client responses to risk questionnaires
4. What is tax-loss harvesting, which many robo-advisors automate?
   • Harvesting crops for profit
   • Hiding income from regulators
   • Buying only winning stocks
   • Selling losing investments to offset taxable gains
5. How is NLP commonly used in investment research?
   • To summarize earnings calls, filings, and news quickly
   • To physically print stock certificates
   • To set interest rates for the economy
   • To replace the stock exchange
6. What is a key risk regulators worry about as AI advice expands?
   • Advisors getting too much sleep
   • Opacity and bias in automated recommendations
   • Too many printed brochures
   • Lower internet speeds
7. What does a robo-advisor commonly use a client risk questionnaire to help determine?
   • The exact future price of every ETF
   • Whether a transaction is fraudulent
   • A target asset allocation aligned with the client’s goals and risk tolerance
   • The wording of a company’s earnings call
8. According to the guide, what kind of information can supervised fraud models learn from?
   • Only hand-drawn portfolio charts
   • The wording of film scripts
   • Unlabeled camera poses
   • Historical transactions and account behavior