Series 65 Sample Case Study Questions

🧠 Series 65 Sample Case Study Questions

Sharpen Your Skills with Realistic Scenarios

The Series 65 exam doesn’t just test memorization—it challenges your ability to apply knowledge in real-world situations. Case study questions are an essential part of the exam, designed to evaluate your understanding of suitability, fiduciary duty, portfolio management, and regulatory concepts.

Here are sample case study-style questions to help you prepare effectively.

📄 Case Study 1 – Risk Tolerance and Asset Allocation

Client Profile:

• Name: Sarah T.
• Age: 45
• Occupation: Corporate attorney
• Investment experience: Moderate
• Annual income: $250,000
• Financial goal: Retire in 15–20 years
• Risk tolerance: Moderate
• Liquidity needs: Low

Question:
Which of the following portfolios would be most appropriate for Sarah?

A. 80% equities, 10% bonds, 10% alternatives
B. 50% equities, 40% bonds, 10% cash
C. 30% equities, 60% bonds, 10% cash
D. 60% equities, 30% bonds, 10% alternatives

Correct Answer: D
Explanation: With a moderate risk tolerance, long-term goal, and low liquidity needs, Sarah is suited for a growth-oriented allocation with a balance of stocks, bonds, and limited alternatives.

📄 Case Study 2 – Fiduciary Standard and Conflicts of Interest

Scenario:
An IAR is advising a client to invest in a fund managed by the IAR’s own firm, which charges a higher internal fee than comparable funds. The IAR discloses the conflict in writing and verbally.

Question:
Which of the following best describes the IAR’s fiduciary obligation in this situation?

A. No conflict exists due to full disclosure
B. The IAR should recommend the fund because it benefits the firm
C. The IAR must still act in the client’s best interest, regardless of disclosure
D. Disclosure alone satisfies all fiduciary requirements

Correct Answer: C
Explanation: Disclosure is necessary but not sufficient. The IAR must recommend only investments that are in the client’s best interest.

📄 Case Study 3 – Suitability for Retired Investor

Client Profile:

• Name: James B.
• Age: 68
• Retired
• Primary concern: Preserving capital and generating income
• Total investable assets: $700,000

Question:
Which investment strategy is most appropriate?

A. 80% growth stocks, 20% bonds
B. 100% municipal bonds
C. Diversified portfolio of dividend-paying stocks and investment-grade bonds
D. Commodities and real estate investment trusts (REITs)

Correct Answer: C
Explanation: James needs income and capital preservation. A balanced approach using high-quality income-producing assets fits his profile.

📄 Case Study 4 – Regulatory Oversight

Scenario:
A federal covered adviser with $120 million AUM provides advice to clients in three states. The adviser has physical offices in two of those states.

Question:
Which regulators have jurisdiction?

A. Only the SEC
B. Only the state regulators
C. Both the SEC and the two states with physical offices
D. Only the states where clients reside

Correct Answer: C
Explanation: While the adviser is federally covered and regulated by the SEC, the states with physical offices still have notice-filing requirements.

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