Investment Advisor Study Guide 2026
Everything you need to pass the Investment Advisor exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 Investment Advisor Exam Format at a Glance
📚 Investment Advisor Topics to Study (33)
✍️ Sample Investment Advisor Questions & Answers
1. The United States' Gini coefficient has decreased over the previous few decades.
The Gini coefficient is a measure of income inequality, where a higher value indicates greater inequality. Over the past several decades, the Gini coefficient in the United States has generally been increasing. This trend indicates a widening gap between the rich and the poor, signifying growing income disparity.
2. Which ethical principle requires an investment adviser to treat all clients fairly and not favor certain clients at the expense of others?
The principle of fair dealing requires advisers to treat all clients equitably, including allocation of investment opportunities and pricing of services.
3. Which SEBI regulation governs the registration and conduct of investment advisers in India?
The SEBI (Investment Advisers) Regulations, 2013 establish the framework for registration, conduct, and obligations of investment advisers.
4. Interest rate risk primarily affects which type of investment?
Bond prices move inversely to interest rates — when rates rise, existing bond prices fall — making fixed-income investments most exposed to interest rate risk.
5. A bond with a face value of $1,000, a coupon rate of 6%, and a market price of $1,050 is said to be trading at:
When a bond's market price exceeds its face (par) value, it is trading at a premium.
6. Which of the following behavioral biases causes investors to hold losing investments too long hoping to break even?
The disposition effect (driven by loss aversion) leads investors to hold losing positions to avoid realizing a loss while prematurely selling winners.