The Series 66 Exam math component is likely to be quite small. Many exam prep providers allocate more practice questions than is likely to show up in practice. In today’s post, we discuss where you should focus your attention.
Series 66 Exam Math: Know the Formulas Not the Math
At Professional Exam Tutoring, we tend to hear a lot about the challenges of the Series 66 Exam. After finishing the Series 7, most people expect this to be an easy one…it is not.
What we often importantly hear, however, is that the more technical sections tend to treat people up.
The analytical sections generally cause problems, but more specifically it’s the formulas or the conceptual ideas behind them that may be the major problem.
For instance, the exam may test you on the capital asset pricing model (CAPM), as well as the Sharpe Ratio, however not via calculations. A possible question may test whether you know the components of each rather than having you calculate either with a set of numbers.
Sparing Math
Somewhat similar to the SIE exam, the Series 66 Exam is likely to have some math on it, but very sparingly.
If you can understand that the internal rate of return (IRR), being greater than the discount rate, is a good thing, then you already know enough to help you out.
There’s no need to fully understand the math behind net present value, the internal rate of return, or even present value and future value.
Some math you may want to be able to perform would be for the Rule of 72 as well as total return (Total return includes capital gains and dividends as a reminder).
Overall, this is not a math heavy exam but getting tripped up on some of the technical stuff can make it challenging. If you need any help, feel free to reach out! Good luck!