SERIES 66 FINAL EXAM 2026 ACTUAL QUESTIONS AND
SOLUTIONS RATED A+
✔✔Are closed ended companies' shares redeemable? - ✔✔no
✔✔Can closed ended funds issue other things besides common stock? - ✔✔yes
✔✔DCA results in the avg cost per share less than the avg price per when the price of
stock has _ and a fixed dollar amount is invested regularly.
this is what you want - ✔✔fluctuated
✔✔If you are an IAR and also an agent at a BD, what must be done if you receive a
commission and collect an advisory fee? - ✔✔you must disclose total compensation to
the client
✔✔MPT describes risk as...
What is used to measure risk? - ✔✔the degree to which investment returns deviate from
what was expected
standard deviation or variance
✔✔MPT describes expected return as... - ✔✔possible returns on the investment
weighted by the likelihood of that return
✔✔The CAPM defines risk as... - ✔✔deviation of returns
uses beta and alpha
✔✔According to modern portfolio theory, a graph of optimal portfolios may be created
known as an efficient frontier - ✔✔
✔✔EMH:
Which form believes in technical analysis?
Which believe in fundamental analysis? "Past market prices are reflected"
Which one believes insider information will help? "All public information is reflected in
the price"
Which on believes prices reflect both public and private information and no one can
beat the market? - ✔✔none
, weak
semi
strong
✔✔Non qualified annuity payments are *LIFO/FIFO/Mixed*
this might not be right?? - ✔✔mixed
✔✔Unemployment benefits *are/are not* exempt from the definition of earned income. -
✔✔are
✔✔For an IAR, social media advertising is considered _ and must be maintained for _
years. - ✔✔advertisement
5
✔✔What is the difference between 506c and 506b offerings? - ✔✔b - no advertisement
and the issuer may sell to an unlimited amount of accredited investors but only 35 non
accredited investors
c- you can advertise and solicit but only accredited investors can purchase
✔✔Is an IA allowed to sell a security it owns to a client? - ✔✔yes, but the firm must
provide disclosure to client and obtain consent
✔✔A structured product usually consist of... - ✔✔a debt instrument and a derivative
✔✔Variable life policies have a *guaranteed/non-guaranteed* surrender value. - ✔✔non
guaranteed
✔✔To issue common stock in a private placement under reg D, the state administrator
would most likely require...(3) - ✔✔form d
consent to service of process
notice iling
✔✔What 3 things (and only 3 things) are needed to make a lump sum projection? -
✔✔life expectancy
inflation
investment return
✔✔Registration of an agent is only as good for as long as...
SOLUTIONS RATED A+
✔✔Are closed ended companies' shares redeemable? - ✔✔no
✔✔Can closed ended funds issue other things besides common stock? - ✔✔yes
✔✔DCA results in the avg cost per share less than the avg price per when the price of
stock has _ and a fixed dollar amount is invested regularly.
this is what you want - ✔✔fluctuated
✔✔If you are an IAR and also an agent at a BD, what must be done if you receive a
commission and collect an advisory fee? - ✔✔you must disclose total compensation to
the client
✔✔MPT describes risk as...
What is used to measure risk? - ✔✔the degree to which investment returns deviate from
what was expected
standard deviation or variance
✔✔MPT describes expected return as... - ✔✔possible returns on the investment
weighted by the likelihood of that return
✔✔The CAPM defines risk as... - ✔✔deviation of returns
uses beta and alpha
✔✔According to modern portfolio theory, a graph of optimal portfolios may be created
known as an efficient frontier - ✔✔
✔✔EMH:
Which form believes in technical analysis?
Which believe in fundamental analysis? "Past market prices are reflected"
Which one believes insider information will help? "All public information is reflected in
the price"
Which on believes prices reflect both public and private information and no one can
beat the market? - ✔✔none
, weak
semi
strong
✔✔Non qualified annuity payments are *LIFO/FIFO/Mixed*
this might not be right?? - ✔✔mixed
✔✔Unemployment benefits *are/are not* exempt from the definition of earned income. -
✔✔are
✔✔For an IAR, social media advertising is considered _ and must be maintained for _
years. - ✔✔advertisement
5
✔✔What is the difference between 506c and 506b offerings? - ✔✔b - no advertisement
and the issuer may sell to an unlimited amount of accredited investors but only 35 non
accredited investors
c- you can advertise and solicit but only accredited investors can purchase
✔✔Is an IA allowed to sell a security it owns to a client? - ✔✔yes, but the firm must
provide disclosure to client and obtain consent
✔✔A structured product usually consist of... - ✔✔a debt instrument and a derivative
✔✔Variable life policies have a *guaranteed/non-guaranteed* surrender value. - ✔✔non
guaranteed
✔✔To issue common stock in a private placement under reg D, the state administrator
would most likely require...(3) - ✔✔form d
consent to service of process
notice iling
✔✔What 3 things (and only 3 things) are needed to make a lump sum projection? -
✔✔life expectancy
inflation
investment return
✔✔Registration of an agent is only as good for as long as...
