Series 66 Test Specifications Sheet (Page 3 of 6) in pdf

Series 66 Test Specifications Sheet Page 3

Series 66 Test Specifications

2. current and future financial situation (e.g., cash flow; balance sheet; existing

investments; tax situation, social security and pensions)

3. risk tolerance

4. nonfinancial investment considerations (e.g., values; attitudes; experience;

demographics; life events; behavioral finance)

5. client data gathering (e.g., client identification; questionnaires; interviews)

6. time horizon

C. Capital Market Theory (2)

1. investment theories, models, and hypotheses (e.g., Capital Asset Pricing

Model, Modern Portfolio Theory, Efficient Market Hypothesis)

D. Portfolio Management Strategies, Styles and Techniques (5)

1. strategies (e.g., strategic asset allocation; tactical asset allocation)

2. styles (e.g., active; passive; growth; value; income; capital appreciation)

3. techniques (e.g., diversification; sector rotation; dollar-cost averaging; puts;

calls; leveraging; volatility management)

E. Tax Considerations (2)

1. income tax fundamentals - individual (e.g., capital gains; qualified dividends,

tax basis; marginal bracket; alternative minimum tax)

2. income tax fundamentals - corporate, trust, and estate

3. estate tax and gift tax fundamentals

F. Retirement Plans (3)

1. Individual Retirement Accounts (traditional and Roth)

2. qualified retirement plans

3. nonqualified retirement plans

G. ERISA Issues (1)

1. fiduciary issues (e.g., investment choices; 404(c))

2. investment policy statement

Series 66 Test Specifications Sheet Page 3