SERIES 66 MASTERY EXAM 2025/2026 WITH
QUESTIONS AND VERIFIED ANSWERS ||
ALREADY GRADED A+ | GUARANTEED PASS |
LATEST VERSION!!!
C) State A and State B. - CORRECT ANSWER - An individual is employed by
Prolixity Investment Advisers (PIA), an investment adviser with almost $200
million in assets under management (AUM). The individual works out of PIA's
office in State A and spends three days every month in PIA's State B office where
she conducts concise investing seminars for potential advisory clients. Under the
provisions of the Uniform Securities Act and applicable federal laws, this
individual would be required to register as an investment adviser representative in
A) State B.
B) no state, because the individual does not provide investment advice to any retail
clients.
C) State A and State B.
D) State A.
C) Investment policy statement - CORRECT ANSWER - Which of the following
is a written document that sets forth a client's objectives, sets limitations on the
portfolio manager, provides guidance to the portfolio manager, and provides a
means for evaluating performance?
A) Risk profile questionnaire
B) Financial planning disclosure
C) Investment policy statement
D) New account form
1|Page
,B) in a face-to-face meeting with a client. - CORRECT ANSWER - Social media
concerns are not likely to occur when an agent is
A) linking to a third-party site on Facebook.
B) in a face-to-face meeting with a client.
C) communicating with a client via email.
D) posting a tweet.
A) Wisconsin and Illinois. - CORRECT ANSWER - XYZ Securities is a broker-
dealer based in Wisconsin with offices in no other state. In addition to its
Wisconsin clients, XYZ has 30 retail customers living in Illinois. During the
winter, if 10 existing customers vacation in Florida for up to seven weeks at a time,
XYZ Securities is a broker-dealer in
A) Wisconsin and Illinois.
B) Wisconsin, Illinois, and Florida.
C) all states having enacted the USA.
D) Wisconsin only.
C) $11.80 per share - CORRECT ANSWER - An investor begins contributing
$600 on the third day of each month to a purchase plan for the KAPCO Total
Return Fund. For the first six months, the per share prices were as follows:
$10
$12
$15
$20
$12
2|Page
,$8
What is this investor's breakeven point?
A) $12.83 per share
B) $12.50 per share
C) $11.80 per share
D) $8.00 per share
C) recommend the client consult with a qualified legal professional. - CORRECT
ANSWER - A client calls and tells her adviser that she has read about how to
avoid estate taxes by transferring all her assets into an irrevocable living trust and
would like the adviser's opinion on the matter. The adviser's most appropriate and
ethical response should be to
A) discuss the advantages of the arrangement and assist the client in drafting the
appropriate documents for a fee.
B) urge the client to consult with an attorney without disclosing that this attorney
pays a referral fee to the investment adviser.
C) recommend the client consult with a qualified legal professional.
D) refuse to discuss the trust with the client because the adviser does not want the
client to transfer her assets to another account.
B) 2.00%. - CORRECT ANSWER - During the past year, the market price of
KAPCO common stock increased from $47 to $50 per share. Over that period,
KAPCO's earnings per share (EPS) have increased from $2.00 to $2.50 per share,
and their dividend payout ratio has decreased from 50% to 40%. Based on this
information, the current yield on KAPCO common stock is
A) 2.13%.
3|Page
, B) 2.00%.
C) 4.26%.
D) 6.34%.
A) An adviser may not use specific research reports that are prepared by an outside
third party without disclosure of the source. - CORRECT ANSWER - When an
investment adviser prepares a financial plan and distributes research reports
prepared by several different third parties, which of the following statements is
true?
A) An adviser may not use specific research reports that are prepared by an outside
third party without disclosure of the source.
B) An adviser is prohibited from distributing someone else's work.
C) An adviser must disclose the source of any information used in making a
recommendation to a client whenever requested by the client.
D) An adviser is required to disclose all sources of information used in making a
recommendation to a client.
B) the internal rate of return (IRR). - CORRECT ANSWER - The rate that
produces a net present value of a series of discounted cash flows equal to zero is
called
A) the return on investment (ROI).
B) the internal rate of return (IRR).
C) the average rate of return.
D) the opportunity cost of investing.
D) recommend Torex to a client, but she must disclose her investment in Torex to
the client. - CORRECT ANSWER - Isabelle is an investment adviser
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QUESTIONS AND VERIFIED ANSWERS ||
ALREADY GRADED A+ | GUARANTEED PASS |
LATEST VERSION!!!
C) State A and State B. - CORRECT ANSWER - An individual is employed by
Prolixity Investment Advisers (PIA), an investment adviser with almost $200
million in assets under management (AUM). The individual works out of PIA's
office in State A and spends three days every month in PIA's State B office where
she conducts concise investing seminars for potential advisory clients. Under the
provisions of the Uniform Securities Act and applicable federal laws, this
individual would be required to register as an investment adviser representative in
A) State B.
B) no state, because the individual does not provide investment advice to any retail
clients.
C) State A and State B.
D) State A.
C) Investment policy statement - CORRECT ANSWER - Which of the following
is a written document that sets forth a client's objectives, sets limitations on the
portfolio manager, provides guidance to the portfolio manager, and provides a
means for evaluating performance?
A) Risk profile questionnaire
B) Financial planning disclosure
C) Investment policy statement
D) New account form
1|Page
,B) in a face-to-face meeting with a client. - CORRECT ANSWER - Social media
concerns are not likely to occur when an agent is
A) linking to a third-party site on Facebook.
B) in a face-to-face meeting with a client.
C) communicating with a client via email.
D) posting a tweet.
A) Wisconsin and Illinois. - CORRECT ANSWER - XYZ Securities is a broker-
dealer based in Wisconsin with offices in no other state. In addition to its
Wisconsin clients, XYZ has 30 retail customers living in Illinois. During the
winter, if 10 existing customers vacation in Florida for up to seven weeks at a time,
XYZ Securities is a broker-dealer in
A) Wisconsin and Illinois.
B) Wisconsin, Illinois, and Florida.
C) all states having enacted the USA.
D) Wisconsin only.
C) $11.80 per share - CORRECT ANSWER - An investor begins contributing
$600 on the third day of each month to a purchase plan for the KAPCO Total
Return Fund. For the first six months, the per share prices were as follows:
$10
$12
$15
$20
$12
2|Page
,$8
What is this investor's breakeven point?
A) $12.83 per share
B) $12.50 per share
C) $11.80 per share
D) $8.00 per share
C) recommend the client consult with a qualified legal professional. - CORRECT
ANSWER - A client calls and tells her adviser that she has read about how to
avoid estate taxes by transferring all her assets into an irrevocable living trust and
would like the adviser's opinion on the matter. The adviser's most appropriate and
ethical response should be to
A) discuss the advantages of the arrangement and assist the client in drafting the
appropriate documents for a fee.
B) urge the client to consult with an attorney without disclosing that this attorney
pays a referral fee to the investment adviser.
C) recommend the client consult with a qualified legal professional.
D) refuse to discuss the trust with the client because the adviser does not want the
client to transfer her assets to another account.
B) 2.00%. - CORRECT ANSWER - During the past year, the market price of
KAPCO common stock increased from $47 to $50 per share. Over that period,
KAPCO's earnings per share (EPS) have increased from $2.00 to $2.50 per share,
and their dividend payout ratio has decreased from 50% to 40%. Based on this
information, the current yield on KAPCO common stock is
A) 2.13%.
3|Page
, B) 2.00%.
C) 4.26%.
D) 6.34%.
A) An adviser may not use specific research reports that are prepared by an outside
third party without disclosure of the source. - CORRECT ANSWER - When an
investment adviser prepares a financial plan and distributes research reports
prepared by several different third parties, which of the following statements is
true?
A) An adviser may not use specific research reports that are prepared by an outside
third party without disclosure of the source.
B) An adviser is prohibited from distributing someone else's work.
C) An adviser must disclose the source of any information used in making a
recommendation to a client whenever requested by the client.
D) An adviser is required to disclose all sources of information used in making a
recommendation to a client.
B) the internal rate of return (IRR). - CORRECT ANSWER - The rate that
produces a net present value of a series of discounted cash flows equal to zero is
called
A) the return on investment (ROI).
B) the internal rate of return (IRR).
C) the average rate of return.
D) the opportunity cost of investing.
D) recommend Torex to a client, but she must disclose her investment in Torex to
the client. - CORRECT ANSWER - Isabelle is an investment adviser
4|Page
