STUDY FOR THE SERIES 66 EXAM

Taking the Series 66 Exam? If yes, make sure that you are able to work problems regarding the Time Value of money, such as the net present value (NPV) and future value (FV). How do I know this? I know this because NASAA publishes Test Specifications for the Series 66 Exam , and Section I (A) (1) (1.1 - 1.3) specifically discusses concepts regarding  Time Value of Money . Bob Eder discusses discusses these concepts in his Study for the Series 66 Exam . Here is a sample problem involving NPV: James is considering purchasing a business office building. He thinks that he could sell the building for  $1 million at the end of five years. Assume interest rates will hold steady at six percent for this period and interest is paid on a yearly basis. What is the net present value (NPV) of the $1,000,000 sales proceeds? To solve for NPV of $1 million, here is the formula: NPV = Future Amount/(1.06)^5 NPV 1,000,000/1.338 NPV= $747,258 Here is the link to NASAA's Test Specifications ...

The Series 66 exam qualifies a person for state registration as an investment adviser representative, but is available only for those candidates who hold a current valid Series 7 registration, or who plan to take the Series 7 in the near future. Planning to take the Series 66 exam? Then study up on analytical methods used in investment analysis. Because you will be asked about these on the Series 66. By analytical methods, the Series 66 refers to time value of money concepts, such as internal rate of return, and net present value. Also included are descriptive statistics, such as mean, median, mode, range, standard deviation, alpha, beta, correlation and Sharpe Ratios. Also financial ratios and their uses, such as balance sheet and income statement ratios. Lastly, the Series 66 tests on valuation ratios, such as price-to-book, price earnings, and price earnings over growth, or PEG ratio. Bob Eder's book, Study for the Series 66 Exam , has several chapters on the topics ...