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SERIES 66: Series66 (Series66) NASD Series 66
Free Practice Exam Questions (page: 3)
Updated On: 10-Jan-2026

Page 3 of 52
PDF with 251 Questions

The executor of an estate is typically identified within which document?

  1. Life insurance policy
  2. The trust certificate
  3. The will
  4. The discretionary order

Answer(s): C

Explanation:

An estate's executor is typically identified within the will of the deceased. If no executor has been selected, the state will appoint someone to manage the assets of the estate; this person is known as the administrator



A self-employed individual is an example of which of the following?

  1. Sole Proprietor
  2. Limited Liability Company
  3. Subchapter S
  4. General Partnership
  5. Executor

Answer(s): A

Explanation:

Self-employed individuals work for themselves and are considered sole proprietors. A sole proprietor maintains managerial control of his or her business, is entitled to all the profits from the business and is personally responsible for all company debt



Ronnie Ann is a 48-year-old marketing executive. She consults Amy, her investment advisor about the possibility of retiring at age 55, based on her current investments and an anticipated inheritance in the next year. Since Ronnie Ann''s time horizon to retirement is short (seven years), she tells Amy that she cannot afford to invest new money in speculative, high-risk investments.
Which of the following would represent an unsuitable investment for Ronnie Ann''s time horizon?

  1. Blue Chip Stocks
  2. ''AAA'' Bonds
  3. Hedge Fund
  4. Money Market CD

Answer(s): C

Explanation:

Hedge funds are high-risk investment vehicles that can return a high pay-off; however, this type of investment is very risky and Ronnie Ann specifically expressed concern that her time horizon would not allow for risky new investments. In seven years, Ronnie Ann's money would be very safe in a money market CD, high grade corporate bonds (AAA) or a very closely managed portfolio of blue chip stocks



The general investing public is under the opinion that today''s new tech stock is going to take off and that its high price/earnings ratio is insignificant. Mary invests with the philosophy that the new tech stock is highly over-valued and that when the stock price is lower and the company begins to show earnings, it may represent a good buy. This is known as:

  1. Efficient frontier
  2. Contrarian investing
  3. Tactical asset allocation
  4. Modern Portfolio Theory

Answer(s): B

Explanation:

Mary invests with a contrarian investment strategy, a style that does not follow public opinion and market trends. Contrarian style investing generally places value on solid companies with low P/E ratios



Stanley Pawlowski is the administrator of his company pension 401(k) plan. He''s just hired Dennis Blaze as the investment advisor who will also share in fiduciary responsibility. Under the Employee Retirement Income Security Act (ERISA), which one of the following documents must Stanley and Dennis keep on file?

  1. The plan''s performance reports
  2. An investment policy statement
  3. An official statement
  4. A contract of qualified plan participants

Answer(s): B

Explanation:

An investment policy statement describes the plan's investment strategy as well as long- term plan goals, investment philosophy, risk tolerance, time horizons, rate of return expectations and preferred asset classes. An investment advisor is bound by law and fiduciary responsibility to follow this blueprint of the investment plan



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