Free Series 65 Practice Test

Heads up: these are full-difficulty, exam-level questions — harder than most free Series 65 questions online, on purpose. A low score before studying is normal. Answer all 8 to see your score and a full explanation for each.

Question 1 of 8 · Portfolio Analysis

The risk-free rate is 2%, a portfolio returned 10%, and its standard deviation is 16%. Its Sharpe ratio is:

Question 2 of 8 · Adviser Regulation

An investment adviser managing $115 million in regulatory assets under management generally must:

Question 3 of 8 · Fiduciary & Ethics

Under the SEC's interpretation, an investment adviser's fiduciary duty is composed of:

Question 4 of 8 · Client Recommendations

A client is emotionally comfortable with big market swings but has a 2-year horizon, minimal savings, and a near-term need for the funds. The recommendation should be driven mainly by her:

Question 5 of 8 · Economic Factors

Real GDP differs from nominal GDP in that real GDP:

Question 6 of 8 · Investment Vehicles

A bond with a 6% coupon and $1,000 par trades at $900. Which correctly orders its yields?

Question 7 of 8 · Retirement & Tax

A client inherits appreciated stock from a parent who died this year. The beneficiary's cost basis is generally:

Question 8 of 8 · Adviser Regulation

An investment adviser wants to sell a bond from its own inventory to an advisory client (a principal transaction). Under the Advisers Act, it must: