AAMS Study Guide 2026
Everything you need to pass the AAMS exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 AAMS Exam Format at a Glance
📚 AAMS Topics to Study (37)
✍️ Sample AAMS Questions & Answers
1. A systematic rebalancing policy that triggers trades only when allocations drift beyond a set band (e.g., ±5%) is called:
Threshold rebalancing triggers only when allocations breach a predefined drift band, reducing unnecessary turnover compared to calendar-based approaches.
2. In a rising interest rate environment, which bond characteristic best protects an investor from significant price decline?
Short duration bonds reprice quickly and return principal sooner, while higher coupons reduce duration, minimizing price sensitivity to rising rates.
3. Which suitability obligation requires a broker-dealer to monitor a client's account for excessive trading relative to their profile?
Quantitative suitability obligates a broker-dealer with discretion to ensure the overall quantity of recommended transactions is appropriate and not excessive (churning).
4. A risk parity portfolio weights asset classes by:
Risk parity allocates so that each asset class contributes equally to total portfolio volatility, often resulting in larger allocations to bonds than equities.
5. A client's portfolio underperforms its benchmark by 2%. The manager should first:
Performance attribution analysis identifies whether underperformance is due to asset allocation, security selection, or market conditions.
6. Which type of risk is eliminated through diversification across many asset classes?
Unsystematic (idiosyncratic) risk is company- or industry-specific and can be diversified away, unlike systematic risk.