TestGeek: Series 66 Exam 2025
Questions and Answers
The method of computing long-term returns that takes into consideration time value of
money is - ANSWER✔✔-Internal Rate of Return
What pair will offer the diversification? - 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: - ANSWER✔✔-Semi Strong
In Modern Portfolio Theory, what is an efficient portfolio set? - ANSWER✔✔-The
Efficient Frontier
Treasury bonds are associated with which types of risk? - ANSWER✔✔-Reinvestment
and interest rate risk
An investor is long 100 shares of stock. What will allow her to profit? - ANSWER✔✔-
Sell a Call
, An investor is short 100 shares of stock. What would allow her to protect against risk? -
ANSWER✔✔-Buy a call
The Capital Needs Analysis is used to determine - 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 - ANSWER✔✔-Buy or sell
at lease the standard unit of a specific stock traded in the OTC market
American options may be exercised - ANSWER✔✔-At any time
European options may be exercised - ANSWER✔✔-Only at expiration
Two things that a sole proprietorship and LLC have in common - ANSWER✔✔-Flow
through of income or losses and ease of formation
Sole proprietorships do not have limited liability because - 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? - ANSWER✔✔-$1000x12 months
$12000/0.3
Researching individual companies and then the industry is called - ANSWER✔✔-
Bottom up
Questions and Answers
The method of computing long-term returns that takes into consideration time value of
money is - ANSWER✔✔-Internal Rate of Return
What pair will offer the diversification? - 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: - ANSWER✔✔-Semi Strong
In Modern Portfolio Theory, what is an efficient portfolio set? - ANSWER✔✔-The
Efficient Frontier
Treasury bonds are associated with which types of risk? - ANSWER✔✔-Reinvestment
and interest rate risk
An investor is long 100 shares of stock. What will allow her to profit? - ANSWER✔✔-
Sell a Call
, An investor is short 100 shares of stock. What would allow her to protect against risk? -
ANSWER✔✔-Buy a call
The Capital Needs Analysis is used to determine - 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 - ANSWER✔✔-Buy or sell
at lease the standard unit of a specific stock traded in the OTC market
American options may be exercised - ANSWER✔✔-At any time
European options may be exercised - ANSWER✔✔-Only at expiration
Two things that a sole proprietorship and LLC have in common - ANSWER✔✔-Flow
through of income or losses and ease of formation
Sole proprietorships do not have limited liability because - 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? - ANSWER✔✔-$1000x12 months
$12000/0.3
Researching individual companies and then the industry is called - ANSWER✔✔-
Bottom up
