Test Geek: Series 66 Exam UPDATED
ACTUAL Exam Questions and CORRECT
Answers
The method of computing long-term returns that takes into consideration time value of money is
- CORRECT ANSWER - Internal Rate of Return
What pair will offer the diversification? - CORRECT ANSWER - Those that do not generally
have a high degree of correlation such as Us equity securities and Foreign equity securities
According to the Efficient Market Hypothesis, information based on company financial and
economic factors is considered to be: - CORRECT ANSWER - Semi Strong
In Modern Portfolio Theory, what is an efficient portfolio set? - CORRECT ANSWER - The
Efficient Frontier
Treasury bonds are associated with which types of risk? - CORRECT ANSWER -
Reinvestment and interest rate risk
An investor is long 100 shares of stock. What will allow her to profit? - CORRECT
ANSWER - Sell a Call
An investor is short 100 shares of stock. What would allow her to protect against risk? -
CORRECT ANSWER - Buy a call
The Capital Needs Analysis is used to determine - CORRECT ANSWER - The use and
amount of insurance needed to meet future needs
A market maker is described as a B/D who stands ready to - CORRECT ANSWER - Buy or
sell at lease the standard unit of a specific stock traded in the OTC market
, American options may be exercised - CORRECT ANSWER - At any time
European options may be exercised - CORRECT ANSWER - Only at expiration
Two things that a sole proprietorship and LLC have in common - CORRECT ANSWER -
Flow through of income or losses and ease of formation
Sole proprietorships do not have limited liability because - CORRECT ANSWER - They are
solely individuals and assume all of the risk
A Grandparent wants to provide $1000 per month in income in perpetuity per grandchild. With a
3% rate of return, what amount does the grandparent need to invest? - CORRECT ANSWER -
$1000x12 months
$12000/0.3
Researching individual companies and then the industry is called - CORRECT ANSWER -
Bottom up
Researching industries and then individual companies is called - CORRECT ANSWER - Top
down
When do Agents, B/D, IA's and IAR's renewal take place? - CORRECT ANSWER -
December 31st
An IA is meeting with a new prospect. What performance data could be presented? - CORRECT
ANSWER - All of your data would need to be presented
An IAR of a federally covered IA must be registered only in the state of - CORRECT
ANSWER - The IAs home office or any other office the IAR may work from
ACTUAL Exam Questions and CORRECT
Answers
The method of computing long-term returns that takes into consideration time value of money is
- CORRECT ANSWER - Internal Rate of Return
What pair will offer the diversification? - CORRECT ANSWER - Those that do not generally
have a high degree of correlation such as Us equity securities and Foreign equity securities
According to the Efficient Market Hypothesis, information based on company financial and
economic factors is considered to be: - CORRECT ANSWER - Semi Strong
In Modern Portfolio Theory, what is an efficient portfolio set? - CORRECT ANSWER - The
Efficient Frontier
Treasury bonds are associated with which types of risk? - CORRECT ANSWER -
Reinvestment and interest rate risk
An investor is long 100 shares of stock. What will allow her to profit? - CORRECT
ANSWER - Sell a Call
An investor is short 100 shares of stock. What would allow her to protect against risk? -
CORRECT ANSWER - Buy a call
The Capital Needs Analysis is used to determine - CORRECT ANSWER - The use and
amount of insurance needed to meet future needs
A market maker is described as a B/D who stands ready to - CORRECT ANSWER - Buy or
sell at lease the standard unit of a specific stock traded in the OTC market
, American options may be exercised - CORRECT ANSWER - At any time
European options may be exercised - CORRECT ANSWER - Only at expiration
Two things that a sole proprietorship and LLC have in common - CORRECT ANSWER -
Flow through of income or losses and ease of formation
Sole proprietorships do not have limited liability because - CORRECT ANSWER - They are
solely individuals and assume all of the risk
A Grandparent wants to provide $1000 per month in income in perpetuity per grandchild. With a
3% rate of return, what amount does the grandparent need to invest? - CORRECT ANSWER -
$1000x12 months
$12000/0.3
Researching individual companies and then the industry is called - CORRECT ANSWER -
Bottom up
Researching industries and then individual companies is called - CORRECT ANSWER - Top
down
When do Agents, B/D, IA's and IAR's renewal take place? - CORRECT ANSWER -
December 31st
An IA is meeting with a new prospect. What performance data could be presented? - CORRECT
ANSWER - All of your data would need to be presented
An IAR of a federally covered IA must be registered only in the state of - CORRECT
ANSWER - The IAs home office or any other office the IAR may work from
