Premium Exam Preparation

FINRA Series 86 Research Analyst Practice Exam

Prepare for the FINRA Series 86 Research Analyst exam with comprehensive resources and strategies. Understand the exam format, key content areas, and tips to enhance your study approach.

Unlock Premium AccessTry a sample question

P

214+
Practice questions
✕
Zero ads
✕
No mobile required
✓
Instant feedback
Sample question

See how it works before you commit.

A real question from the FINRA Series 86 Research Analyst Practice Exam bank. Answer it, see the explanation, then decide.

Multiple Choice

What formula is used to calculate levered beta?

Explanation:
The correct formula to calculate levered beta involves taking unlevered beta and adjusting it for the impact of the company’s debt. Levered beta reflects the risk of a company’s equity as influenced by its capital structure, particularly the proportion of debt in relation to equity. The formula uses unlevered beta as a baseline, which represents the risk of the company's assets without the impact of debt. By multiplying unlevered beta by the factor (1 + [(1 - tax rate) x (debt/equity)]), the calculation accounts for the additional risk introduced by debt financing, adjusted for the tax shield associated with interest expense. The tax shield is essential because it can lower the effective cost of debt, affecting the risk profile of the equity holders. In summary, this method effectively captures the increased volatility or risk associated with a leveraged capital structure compared to an unleveraged one, aligning with the principles of the Capital Asset Pricing Model (CAPM) where risk is directly related to expected return.

This is one of 214+ questions in the full bank.

Practice moreFlashcards

Everything in one place.

Passetra combines question practice, flashcard revision, and offline study materials into a single, focused environment.

01

Question bank

Full multiple-choice practice with immediate answer feedback and explanations. Work through the entire syllabus or jump into random sessions.

Start practising
02

Flashcard mode

Rapid-fire revision for the concepts you need to lock in. Works well for short study bursts between sessions.

Open flashcards
03

Study guide PDF

Download the full study guide and study offline. A structured reference you can print or annotate.

Buy for $15.99

Passetra Premium

The complete preparation package.

The free preview gives you a taste. Premium unlocks the entire question bank, ad-free, with no restrictions on how you study.

Full question bank — all 214+ questions, no limits
Completely ad-free throughout
Flashcards and study tools included
Instant explanations on every answer
PDF study guide available
Unlock Premium Access

Included with Premium

Unlimited practice questions
Flashcard revision mode
Instant answer explanations
Zero advertisements
Works in any browser

About this course

FINRA Series 86 Research Analyst Exam Overview

The FINRA Series 86 exam is designed for individuals seeking to become research analysts in the financial services industry. This exam assesses candidates' knowledge of investment analysis and securities research, ensuring they understand the essential principles required for the role. Passing this exam is a crucial step for professionals looking to advance their careers in finance.

Exam Format

The Series 86 exam consists of multiple-choice questions that cover a variety of topics relevant to research analysts. Typically, candidates can expect a set number of questions, often around 100, with a time limit to complete the exam. The questions are designed to evaluate both theoretical knowledge and practical application in real-world scenarios. Candidates are encouraged to familiarize themselves with the exam structure to optimize their performance.

Common Content Areas

Understanding the common content areas tested on the Series 86 exam is vital for effective preparation. Key topics include:

  • Investment Analysis: Candidates should be well-versed in analyzing various investment vehicles, including stocks, bonds, and mutual funds.
  • Securities Research: This area tests knowledge on how to conduct thorough research on companies and industries, including financial statement analysis.
  • Economic Indicators: Familiarity with economic indicators and their impact on securities is essential for research analysts.
  • Regulatory Framework: Candidates must understand the regulatory environment affecting securities, including the role of FINRA and the SEC.
  • Valuation Techniques: Knowledge of different valuation methods, including discounted cash flow analysis, is critical for making informed investment recommendations.

Typical Requirements

While specific requirements can vary, candidates typically need to meet certain educational and professional criteria to sit for the Series 86 exam. A background in finance, economics, or a related field is often beneficial. Additionally, having experience in investment analysis or a related position can provide a significant advantage in understanding the exam material.

Tips for Success

To succeed on the FINRA Series 86 exam, consider the following tips:

  1. Create a Study Plan: Develop a structured study schedule that allocates time for each content area. Consistency is key to retaining information.
  2. Utilize Study Resources: Leverage study materials such as textbooks, online courses, and practice questions. Passetra is a valuable resource that offers comprehensive study guides tailored for the Series 86 exam.
  3. Practice with Sample Questions: Familiarize yourself with the exam format by practicing with sample questions. This will help you become comfortable with the types of questions you may encounter.
  4. Join Study Groups: Engaging with peers who are also preparing for the exam can provide support and enhance your understanding of complex topics.
  5. Stay Informed: Keep up to date with financial news and trends, as this knowledge can enhance your analytical skills and provide context for exam questions.

By following these tips and dedicating sufficient time to your studies, you can increase your chances of passing the FINRA Series 86 exam and achieving your goal of becoming a successful research analyst in the financial industry.

Common questions

Answers before you start.

What is the FINRA Series 86 Research Analyst exam and its significance?

The FINRA Series 86 Research Analyst exam is a crucial assessment for professionals seeking to provide investment research and recommendations. It tests knowledge in securities analysis and research process, ensuring candidates have the skills required to evaluate investment opportunities and contribute to informed decision-making in finance.

Go ad-free & more with Passetra Plus

What topics should I focus on for the FINRA Series 86 exam?

Key areas of focus for the FINRA Series 86 exam include company analysis, valuation methods, financial statements, and economic indicators. Understanding these topics will enhance your ability to conduct thorough research. Utilizing comprehensive resources is essential for effective preparation before the actual exam.

Start multiple choice practice test

What is the average salary for a Research Analyst?

In the United States, Research Analysts earn an average salary of around $83,000 annually, though this can vary by location and industry. In cities like New York or San Francisco, salaries can be significantly higher, reflecting the demand for skilled analysts in investment firms and corporations.

Dive in with Passetra Plus

What are the eligibility requirements for taking the FINRA Series 86 exam?

To take the FINRA Series 86 exam, candidates must be associated with a FINRA member firm and have sponsorship. Additionally, prospective analysts should have a strong understanding of investment concepts and the analytical skills necessary for the role, reinforcing the need for thorough preparatory studies.

How can I effectively prepare for the FINRA Series 86 Research Analyst exam?

Effective preparation for the FINRA Series 86 exam includes utilizing comprehensive study materials, engaging with practice questions, and reviewing financial principles. Seeking dedicated preparatory resources can greatly enhance your confidence and readiness for success in this assessment.

Get your premium subscription with Passetra Plus

What candidates say

Real feedback from Passetra users.

4.38
Review ratingReview ratingReview ratingReview ratingReview rating
45 reviews

Rating breakdown

5 stars
21
4 stars
20
3 stars
4
2 stars
0
1 star
0

95%

of customers recommend this product

  • Review ratingReview ratingReview ratingReview ratingReview rating
    User avatar
    Monica T.

    I just took the Series 86 and found the questions prepared me well for the exam. The challenge of random questions kept my brain sharp and focused. I felt ready thanks to this fantastic study resource. My colleagues also found it useful, so I’d say it’s definitely worth a shot! Rating: 5/5

  • Review ratingReview ratingReview ratingReview ratingReview rating
    User avatar
    David X.

    This study resource was my saving grace! The randomization of questions really tested my knowledge and exposed gaps I needed to work on. I felt much better prepared than I did coming into it. I've told everyone I know who's taking the exam to check this out! Rating: 5/5

  • Review ratingReview ratingReview ratingReview rating
    User avatar
    Liam R.

    Overall, the exam materials were comprehensive and well-structured. I took my time going through the questions and found the explanations particularly useful. I’d rate my experience a solid 4 out of 5. The only downside is that I wished for more contextual examples in some areas. Nonetheless, I feel ready to take on the test and do my best!

View all reviews

Ready to prepare properly?

Start with the free sample. When you're ready to go all-in, unlock the complete Passetra Premium experience — no ads, no limits.

Unlock Premium AccessContinue practising free
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy