SERIES 66 FINAL EXAM 2025/2026
QUESTIONS AND VERIFIED ANSWERS ||
ALREADY GRADED A+ | GUARANTEED
PASS | LATEST VERSION!!!
A dollar-weighted return is also referred to as:
A Time-weighted return
B Internal rate of return
C Inflation-adjusted or real rate of return
D Total or holding period return - CORRECT ANSWER - B Internal rate of return
What's a benefit of establishing a general partnership compared to establishing an
S-corporation?
A General partnerships don't require incorporation with the state
B Limited liability for owners
C Efficient taxation
D The business can own property - CORRECT ANSWER - A General
partnerships don't require incorporation with the state
Which of the following can be included in an investment advisory contract?
A A clause which indemnifies the adviser from any wrongdoing
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,B A statement indicating that the IA guarantees performance against a benchmark
and, if it is not met, the IA will surrender its fee for that year
C The fact that conflicts may exist, without disclosing the details of those conflicts
D That the IA is entitled to a portion of all of its clients' profits - CORRECT
ANSWER - B A statement indicating that the IA guarantees performance against a
benchmark and, if it is not met, the IA will surrender its fee for that year
This is a characteristic of a fulcrum fee
Janet has been married twice and earned more than each husband. Both marriages
ended in divorce. Her first marriage lasted for 10 years, while her second marriage
lasted for 12 years. Janet is now collecting Social Security. Are either of her ex-
spouses eligible to collect Social Security based on Janet's work history?
A Yes, but only the first spouse.
B Yes, but only if each ex-spouse does not remarry.
C No, since neither spouse was married to Janet for longer than 15 years.
D Yes, but only if Janet does not remarry. - CORRECT ANSWER - B Yes, but
only if each ex-spouse does not remarry.
If a person is divorced, but his marriage lasted 10 years or longer, he is entitled to
receive benefits on his ex-spouse's work history (even if she has remarried)
provided:
He is unmarried;
He is age 62 or older;
His ex-spouse is entitled to Social Security or disability benefits; and
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,The benefit he is entitled to receive based on his own work history is less than the
benefit he would receive based on his ex-spouse's work history
When the beta for a portfolio is 1.0, the portfolio return is 12%. What's the alpha if
the portfolio now has a beta of 1.4 and the actual return is 18.8%?
A +6.80
B -6.80
C +2.00
D -2.00 - CORRECT ANSWER - C +2.00
1.4(12)=18.8
18.8-16.8=2
Which of the following is NOT defined as an IAR?
A A person who gives advice and is employed by an investment adviser
B A person who solicits new business for an investment adviser
C A person that manages portfolios and assets for its clients
D A person who manages IARs at an investment advisory firm - CORRECT
ANSWER - A person that manages portfolios and assets for its clients
Which of the following investments is acceptable in an IRA?
A Crude oil futures
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, B Landscape art
C Shares of a REIT
D Life insurance - CORRECT ANSWER - C Shares of a REIT
On the other hand, art and other collectibles, life insurance, and crude oil futures
contracts are prohibited in an IRA.
(Because they arent Securities)
Which of the following actions will require an adviser to register under the USA?
A Selling fixed annuities
B Selling mutual funds
C Selling equity-indexed annuities
D Selling investment management services - CORRECT ANSWER - Selling
investment management services
What is the motivation behind setting up an UTMA account?
A To fund higher education
B To provide gifts to the child/owner
C For tax savings
D To reduce the estate of the donor - CORRECT ANSWER - To provide gifts to
the child/owner
UTMA= A custodial account. This is NOT a Education account. Therefore, this is
really used to gift minors
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QUESTIONS AND VERIFIED ANSWERS ||
ALREADY GRADED A+ | GUARANTEED
PASS | LATEST VERSION!!!
A dollar-weighted return is also referred to as:
A Time-weighted return
B Internal rate of return
C Inflation-adjusted or real rate of return
D Total or holding period return - CORRECT ANSWER - B Internal rate of return
What's a benefit of establishing a general partnership compared to establishing an
S-corporation?
A General partnerships don't require incorporation with the state
B Limited liability for owners
C Efficient taxation
D The business can own property - CORRECT ANSWER - A General
partnerships don't require incorporation with the state
Which of the following can be included in an investment advisory contract?
A A clause which indemnifies the adviser from any wrongdoing
1|Page
,B A statement indicating that the IA guarantees performance against a benchmark
and, if it is not met, the IA will surrender its fee for that year
C The fact that conflicts may exist, without disclosing the details of those conflicts
D That the IA is entitled to a portion of all of its clients' profits - CORRECT
ANSWER - B A statement indicating that the IA guarantees performance against a
benchmark and, if it is not met, the IA will surrender its fee for that year
This is a characteristic of a fulcrum fee
Janet has been married twice and earned more than each husband. Both marriages
ended in divorce. Her first marriage lasted for 10 years, while her second marriage
lasted for 12 years. Janet is now collecting Social Security. Are either of her ex-
spouses eligible to collect Social Security based on Janet's work history?
A Yes, but only the first spouse.
B Yes, but only if each ex-spouse does not remarry.
C No, since neither spouse was married to Janet for longer than 15 years.
D Yes, but only if Janet does not remarry. - CORRECT ANSWER - B Yes, but
only if each ex-spouse does not remarry.
If a person is divorced, but his marriage lasted 10 years or longer, he is entitled to
receive benefits on his ex-spouse's work history (even if she has remarried)
provided:
He is unmarried;
He is age 62 or older;
His ex-spouse is entitled to Social Security or disability benefits; and
2|Page
,The benefit he is entitled to receive based on his own work history is less than the
benefit he would receive based on his ex-spouse's work history
When the beta for a portfolio is 1.0, the portfolio return is 12%. What's the alpha if
the portfolio now has a beta of 1.4 and the actual return is 18.8%?
A +6.80
B -6.80
C +2.00
D -2.00 - CORRECT ANSWER - C +2.00
1.4(12)=18.8
18.8-16.8=2
Which of the following is NOT defined as an IAR?
A A person who gives advice and is employed by an investment adviser
B A person who solicits new business for an investment adviser
C A person that manages portfolios and assets for its clients
D A person who manages IARs at an investment advisory firm - CORRECT
ANSWER - A person that manages portfolios and assets for its clients
Which of the following investments is acceptable in an IRA?
A Crude oil futures
3|Page
, B Landscape art
C Shares of a REIT
D Life insurance - CORRECT ANSWER - C Shares of a REIT
On the other hand, art and other collectibles, life insurance, and crude oil futures
contracts are prohibited in an IRA.
(Because they arent Securities)
Which of the following actions will require an adviser to register under the USA?
A Selling fixed annuities
B Selling mutual funds
C Selling equity-indexed annuities
D Selling investment management services - CORRECT ANSWER - Selling
investment management services
What is the motivation behind setting up an UTMA account?
A To fund higher education
B To provide gifts to the child/owner
C For tax savings
D To reduce the estate of the donor - CORRECT ANSWER - To provide gifts to
the child/owner
UTMA= A custodial account. This is NOT a Education account. Therefore, this is
really used to gift minors
4|Page
