Series 65 Client Recommendations Practice Questions
III · Client investment recommendations and strategies · 39 of 130 scored questions
Ten Series 65 questions on client investment recommendations and strategies, untimed, with a worked answer after each one.
Or take the full Series 65 mock examA client's taxable income puts her in the 22% marginal federal bracket; her effective (average) federal tax rate is 15%. She is considering a 5% taxable CD. Ignoring state tax, what is her after-tax yield on the CD?
Client investment recommendations and strategies on the Series 65
Section III of the Series 65 (39 scored questions) puts the products to work for real clients: profiles, portfolio theory, strategies, taxes, retirement and estate planning.
- Outline
- III: Client profiles, portfolio theory, strategies, taxes, retirement plans, ERISA, estate planning and performance measures
- Share of the exam
- III Client investment recommendations and strategies: 39 of 130 scored questions (30%)
- Our drill
- 10 questions from 50 on this topic, untimed, a worked answer after each; one free attempt, unlimited with a pass
What to know
- The capital asset pricing model: expected return = risk-free rate + beta × (market return − risk-free rate).
- The Sharpe ratio = (portfolio return − risk-free rate) ÷ standard deviation; alpha is the return above what beta predicts.
- Time-weighted return removes the effect of client deposits and withdrawals and is the standard for judging a manager; dollar-weighted return (IRR) reflects the client’s own cash flows.
- Strategic asset allocation sets long-term target weights; tactical allocation shifts temporarily to exploit market conditions; rebalancing restores the targets.
- ERISA requires plan fiduciaries to act solely in the participants’ interest and to diversify; under Section 404(c), when participants control their own accounts (at least three diversified options, changes allowed at least quarterly and enough information to decide), the fiduciary is not liable for losses from participants’ own choices but still must prudently select and monitor the options.
- Joint tenancy with right of survivorship passes to the surviving owner outside probate; a revocable living trust also avoids probate, but the grantor keeps control and pays its taxes.
Test yourself on client investment recommendations and strategies
Ten Series 65 questions on client investment recommendations and strategies, untimed, with a worked answer after each one.
Or take the full Series 65 mock examCommon questions
How many client investment recommendations and strategies questions are on the Series 65?
Section III is 39 of the 130 scored questions (30%).
Are these real Series 65 questions?
No. FINRA and NASAA do not release exam questions. These are original practice questions written to the official content outline, with a worked explanation and the rule behind every answer.
More Series 65 topics
Outline and exam facts checked November 2026: FINRA: Series 65 exam · NASAA Series 65 content outline · NASAA Series 65 study guide · NASAA: Exam FAQs.
Original independent practice questions written to the published NASAA content outline. Not affiliated with or endorsed by FINRA or NASAA.