{"id":"series-65-free","timeLimitSec":390,"questions":[{"id":"s65f-001","section":"laws","q":"An investment adviser has no place of business in a state. Under the Uniform Securities Act, how many clients who are residents of that state can it have in 12 months before it must register there?","options":["Five; the sixth requires registration","Ten; the eleventh requires registration","Fifteen","Any number, if it is registered at home"],"answer":0,"explain":"The de minimis exemption covers an adviser with no place of business in the state and not more than five resident clients in the preceding 12 months."},{"id":"s65f-002","section":"economics","q":"The yield curve becomes inverted. What does this mean, and what has it often signalled?","options":["Long rates exceed short rates; strong growth ahead","Short rates exceed long rates; a coming slowdown","All maturities pay the same; stable prices","Bond prices rise; higher inflation ahead"],"answer":1,"explain":"An inverted curve has short-term yields above long-term yields. Historically it has often come before a recession."},{"id":"s65f-003","section":"vehicles","q":"A $1,000 bond with a 6% coupon is trading at $960. What is its current yield?","options":["5.76%","6.4%","6.25%","6%"],"answer":2,"explain":"Current yield = annual interest / price = $60 / $960 = 6.25%."},{"id":"s65f-004","section":"strategies","q":"The risk-free rate is 3%, the market is expected to return 8%, and a stock's beta is 1.2. What is the stock's expected return under the CAPM?","options":["9%","9.6%","8%","6%"],"answer":0,"explain":"CAPM: expected return = Rf + beta x (Rm - Rf) = 3% + 1.2 x 5% = 9%."},{"id":"s65f-005","section":"laws","q":"Under the Uniform Securities Act, which of these is excluded from the definition of an investment adviser?","options":["A newsletter that tailors advice for each reader","A financial planner who charges fees","A pension consultant paid for advice","A bank"],"answer":3,"explain":"Banks are excluded. Financial planners and pension consultants who are paid for securities advice generally meet the definition, and a publication with personalised advice is not a bona fide publisher."}]}