What is the difference between the Series 65 and Series 66 exams?

The Series 65 (Uniform Investment Adviser Law Exam) qualifies individuals as investment adviser representatives (IARs) without a securities license. The Series 66 (Uniform Combined State Law Exam) combines the state law content of the Series 63 with the Series 65 content, and is typically used by individuals who already hold a Series 7. If you hold a Series 7, you can take the Series 66 instead of both the Series 63 and Series 65 separately.

What is the fiduciary standard in investment management?

The fiduciary standard requires investment advisers to act in the best interest of their clients at all times — placing the client's interests above their own. This includes: full disclosure of conflicts of interest, recommending the most suitable investment even if it generates lower compensation, and managing conflicts through disclosure or avoidance. Registered Investment Advisers (RIAs) are held to the fiduciary standard under the Investment Advisers Act of 1940. Broker-dealers have historically been held to the lower "suitability" standard, though Regulation Best Interest (Reg BI) has raised broker-dealer standards.

How is yield to maturity (YTM) different from current yield?

Current yield is a simple measure: annual coupon payment ÷ current bond price. Yield to maturity (YTM) is a comprehensive return measure that accounts for the coupon payments, the price paid (premium or discount to par), and the time to maturity. YTM is essentially the internal rate of return assuming you hold the bond to maturity and reinvest all coupons at the YTM rate. For a discount bond (trading below par), YTM > current yield > coupon rate. For a premium bond (above par), the relationship reverses.

What is beta in investment analysis?

Beta measures a security's price sensitivity relative to the overall market. A beta of 1.0 means the security moves in line with the market. Beta > 1.0 indicates higher volatility (the security amplifies market moves). Beta < 1.0 indicates lower volatility (the security is less sensitive to market moves). Negative beta is rare — it means the security tends to move inversely to the market (like some gold positions or inverse ETFs). Beta measures systematic (market) risk only — the risk that cannot be diversified away.

Investment Practice Test PDF (Free Printable 2026)

Pass the Investment exam with confidence. Practice questions with detailed explanations and instant feedback on every answer.

InvestmentJun 1, 20265 min read

Investment Practice Test PDF – Free Printable Securities & Investment Exam Prep

Preparing for a securities or investment certification exam — including Series 65, CFA Level 1, CFP, Series 7, or other investment licensing tests? A printable investment practice test PDF gives you an offline format to review investment types, portfolio theory, securities regulations, ethics standards, and financial analysis concepts. Working through investment exam questions on paper — calculating returns, evaluating portfolio risk, and applying regulatory standards — builds the quantitative and conceptual recall these exams demand. This page provides a free PDF download and a guide to investment exam content.

Investment certifications span a wide range from entry-level securities licenses (Series 6, 7, 63) to advanced designations (CFA, CFP, CIMA). The knowledge areas overlap significantly: securities types, market mechanics, portfolio theory, regulatory requirements, and ethics appear across most investment credential exams.

Pro Tip: Focus your Investment study time on areas where you score lowest. Most exam questions test application of knowledge, not memorization.

📄Free Investment Practice Test PDF

Core Investment Knowledge Areas

Despite differences in exam format and focus, major investment certification exams test common foundational knowledge. Your investment practice test PDF covers all core areas.

Securities Types and Characteristics

Investment exams test the full range of securities: equities (common vs. preferred stock — dividends, voting rights, liquidation priority), fixed income (bonds — coupon rate, par value, yield to maturity, duration, convexity), options (calls, puts, intrinsic value, time value, breakeven calculations), mutual funds (open-end vs. closed-end, NAV calculation, expense ratios), ETFs (creation/redemption mechanism, tax efficiency vs. mutual funds), and alternative investments (REITs, hedge funds, commodities). Know the risk and return characteristics of each.

Portfolio Theory and Risk Management

Modern Portfolio Theory (MPT) is directly tested on CFA, CFP, and Series 65 exams. Know: diversification (systematic vs. unsystematic risk — only unsystematic risk is diversifiable), the Capital Asset Pricing Model (CAPM: expected return = risk-free rate + beta × equity risk premium), beta as a measure of systematic risk, and the efficient frontier. Risk measures — standard deviation, variance, Sharpe ratio, Treynor ratio — are calculation-based questions on quantitative exams like CFA.

Fixed Income Analysis

Bond math is essential for most investment exams. Know: how bond prices move inversely to interest rates, yield to maturity (YTM) as the internal rate of return on a bond, duration as a measure of price sensitivity to interest rate changes, and the relationship between coupon rate, current yield, and YTM (discount bonds: YTM > current yield > coupon rate). Credit ratings (investment grade vs. high yield), yield curve shapes (normal, inverted, flat), and their economic implications are tested conceptually.

Securities Regulations and Compliance

Regulatory knowledge covers the Securities Act of 1933 (registration of new securities offerings — primary market), Securities Exchange Act of 1934 (secondary market regulation — SEC created, broker-dealer registration), Investment Advisers Act of 1940 (registration of investment advisers, fiduciary duty), and Investment Company Act of 1940 (mutual funds and registered investment companies). For state-level exams (Series 63/65), the Uniform Securities Act (NASAA model) is the primary reference — know registration exemptions, agent licensing, and anti-fraud provisions.

Ethics and Fiduciary Standards

Ethics is the highest-weighted topic on the CFA exam and heavily tested on all investment credentials. Know the distinction between suitability standard (broker-dealers — recommend suitable products) and fiduciary standard (investment advisers — act in the client's best interest). The CFA Institute Code of Ethics and Standards of Professional Conduct are tested directly on CFA exams. Insider trading, front-running, churning, and other prohibited practices appear as scenario questions on all exams.

How to Use This PDF

Start with securities types and ethics — these appear on every investment exam. After this PDF, take online investment practice tests at investment for instant scored feedback.

Start Practice Test

✓Memorize bond price/yield relationship: rates up → prices down; know why (present value mechanics)
✓Know CAPM formula: E(r) = Rf + β(Rm - Rf) — practice calculating expected returns
✓Understand systematic vs. unsystematic risk: only unsystematic (company-specific) risk is diversifiable
✓Study duration: higher duration = higher interest rate sensitivity; zero-coupon bonds have highest duration
✓Know mutual fund NAV calculation: (assets − liabilities) ÷ shares outstanding
✓Review Sharpe ratio: (portfolio return − risk-free rate) ÷ standard deviation — risk-adjusted performance
✓Memorize the key federal securities laws: 1933, 1934, 1940 Advisers Act, 1940 Company Act
✓Study fiduciary vs. suitability standard: know which applies to RIAs vs. broker-dealers
✓Know insider trading definition: material, non-public information — tipper and tippee both liable
✓Practice option terminology: calls (right to buy), puts (right to sell), premium, strike price, expiration

Free Investment Practice Tests Online

After completing this PDF, take full online investment practice tests at investment — instant scoring across securities types, portfolio theory, regulations, and ethics with explanations for every answer. Use both formats: PDF for offline concept review and calculation practice, online for timed exam simulation across the full breadth of investment knowledge tested on Series 65, CFA, CFP, and related exams.

Investment Key Concepts

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What is the passing score for the Investment exam?

Most Investment exams require 70-75% to pass. Check the official exam guide for exact requirements.

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How long is the Investment exam?

The Investment exam typically allows 2-3 hours. Time management is critical for success.

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How should I prepare for the Investment exam?

Start with a diagnostic test, create a 4-8 week study plan, and take at least 3 full practice exams.

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What topics does the Investment exam cover?

The Investment exam covers multiple domains. Review the official content outline for the complete list.