RIA Cheat Sheet 2026

The 30 highest-yield RIA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which investment strategy focuses on undervalued stocks? → Value investing.
2. Which quality improvement method is most applicable to financial analysis & reporting in Registered Investment Advisor? → Plan-Do-Check-Act (PDCA) continuous improvement cycle
3. The 10% early withdrawal penalty from IRAs applies to distributions taken before: → Age 59½
4. Jensen's alpha measures portfolio performance as: → The portfolio's actual return minus its CAPM-expected return given its beta
5. What does GIPS stand for in the context of investment performance reporting? → Global Investment Performance Standards
6. Which documentation practice is most important for tax planning & strategy in the RIA field? → Maintaining complete, accurate, and timely records
7. What is a primary characteristic of tactical asset allocation? → Changing asset mix based on market outlook.
8. The Securities Investor Protection Corporation (SIPC) protects investors against: → Broker-dealer failure and missing customer assets
9. Which of the following is true about index funds? → They replicate index performance and have lower fees.
10. Which of the following best describes a key competency required for regulatory compliance & ethics in RIA certification? → Critical thinking and evidence-based decision making
11. The 'stretch IRA' strategy was largely eliminated by: → The SECURE Act of 2019
12. In Registered Investment Advisor, what role does tax planning & strategy play in ensuring client/stakeholder satisfaction? → It builds trust through demonstrated competence and consistency
13. The Investment Advisers Act anti-fraud provisions apply to: → All persons meeting the definition of investment adviser, regardless of registration
14. Which investment vehicle allows investors to gain exposure to commodities without directly holding physical assets? → Commodity ETFs
15. Which vehicle allows for pooling investor funds and active management? → Mutual fund
16. What is the significance of peer review in financial analysis & reporting for RIA professionals? → It promotes accountability, knowledge sharing, and quality improvement
17. When constructing a liability-driven investment (LDI) strategy, the primary objective is: → Matching the portfolio's assets to specific future liabilities
18. A 403(b) plan is similar to a 401(k) but is specifically designed for: → Public school systems, nonprofits, and tax-exempt organizations
19. Which technology trend is most likely to impact tax planning & strategy in the RIA field in coming years? → Digital tools for enhanced data collection, analysis, and reporting
20. Which portfolio management strategy aims for capital preservation? → Conservative investing.
21. The Investment Advisers Act defines 'investment adviser' to include persons who: → Provide advice about securities for compensation
22. In a GIPS-compliant performance presentation, composite dispersion is primarily used to show: → The range of individual portfolio returns within the composite during the period
23. How often must RIAs update their Form ADV? → Annually and with material changes.
24. Which scenario demonstrates a potential breach of fiduciary duty? → Recommending a proprietary fund without disclosing the adviser's financial interest in it
25. Survivorship bias in investment performance reporting occurs when: → Poorly performing or closed funds are excluded from historical performance databases
26. What is a benefit of a 'buy and hold' strategy? → Lower transaction costs over time.
27. Performance attribution analysis is primarily used to: → Identify the sources of a portfolio's return relative to its benchmark
28. The Sharpe ratio of a portfolio is calculated as which of the following? → (Portfolio Return – Risk-Free Rate) / Standard Deviation
29. A bond trading at a premium means: → Its coupon rate is above the current market rate
30. When gathering information for a client suitability assessment, which factor is LEAST relevant? → Client's neighbor's investment strategy