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
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, 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
Researching industries and then individual companies is called - ANSWER✔✔-Top down
When do Agents, B/D, IA's and IAR's renewal take place? - ANSWER✔✔-December 31st
An IA is meeting with a new prospect. What performance data could be presented? -
ANSWER✔✔-All of your data would need to be presented
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
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
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, 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
Researching industries and then individual companies is called - ANSWER✔✔-Top down
When do Agents, B/D, IA's and IAR's renewal take place? - ANSWER✔✔-December 31st
An IA is meeting with a new prospect. What performance data could be presented? -
ANSWER✔✔-All of your data would need to be presented
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
