Series 66 Exam Analytical Methods NASAA Test Specifications Explication

[@TheReyila]

I am on my next license and so happy that you have all the explanations on series 66. This is great. Thank you :)

[@Series7Guru]

Glad you are finding it helpful.

[@skyemc101882]

Thank you so much for doing these. I just failed the 66 for the 2nd time. I wish now that I would have seen these before now. So thankful your going through the NASAA Test Specs. Please continue to add these... I'm planning to take it again at the beginning of Nov.

[@Series7Guru]

Glad I could help! Working on finishing the rest of the 66 test specifications. Just published a 66 practice final, too!

[@upperdrecker1592]

This was great Dean, thanks. As a non-finance guy it's just what I needed with my test tomorrow. Thanks again for everything.

[@Series7Guru]

Bon chance mon ami!

[@upperdrecker1592]

@@Series7Guru UPDATE - I got at least 3 questions today DIRECTLY from this explication!

[@lynnxiao6613]

Those explication classes are such helpful supplements ！ Thank you! Dean. You are the best.

[@Series7Guru]

Glad you are finding them helpful.

[@davide4639]

Dean - thanks for the videos. for time sake on your end, since you are constantly changing from black to red, you do know that if RED is under the "A", you dont need to click on the down arrow to change your color to red. Just click on the "A" with the RED line under it.

[@Series7Guru]

Thanks. Always learning useful things from our viewers and subscribers like you. My purpose in using red was to distinguish my comments from the actual NASAA test specifications.

[@davide4639]

@@Series7Guru Oh I understand the use, and your videos are great! I have my 66 on Jan 2 and will be watching your videos between now and then. Thank you for what you do

[@Series7Guru]

@@davide4639 de nada

[@kfoxaroni]

I just took the S66 this week and had 2 questions revolving around Price to Book Value...just passing it along since you mentioned you haven't heard of that in a good while

[@Series7Guru]

Thanks for the debrief.

[@LucasMargenot]

34:00 your formula in red is debt-to-equity ratio = debt/total capitalization? debt = $40,000,000, no? If shareholder equity is $50,000,000? debt/total capitalization . Thank you

[@Series7Guru]

See my comments in video description

[@waltertaylor1115]

@@Series7GuruHi Dean, I just received a 64% on my 66 and I’m not sure how to study when I’m 9 questions off..

[@Series7Guru]

@waltertaylor1115 damn. That hurts for sure. Checkout my podcast episode with my 5 reccomdations on how to respond to this misfortune

[@charlieparvinofficial]

This video is probably the best I’ve seen with analytics for the S66. Incredible! I have the NASAA document downloaded. Where can I find the document that you referred to in the video that outlines the S66?

[@Series7Guru]

All the explications of the document are found in the playlist

[@xp0sh]

I'm using Pass Perfect and they threw a bummer at me with the quick ratio by adding prepaid expenses in the balance sheet. I'm so used to thinking of current assets - inventory / current liabilities that I was confused when I got the question wrong.

[@Series7Guru]

They are the toughest provider for sure. Trying to get prepaid expenses back is almost impossible so they are correct even though you won't see prepaid expenses on the actual exam.

[@SandraFernandes621]

Dean to confirm are these the formulas for present value and future value Future value is FV= P (1 +r) n= PV and Present Value PV= P (1 + r)= n= FV

[@Series7Guru]

PV=FV divide by (1+r)n

[@neillitfin897]

Question on the debt to equity ratio, is a higher or lower ratio better? There was a question that had an average of 1 ratio overall and a list of 4 different ratios for companies then pick one of the 4 answers regarding the 4 ratios to the average of 1. Don’t know if that makes sense.

[@Series7Guru]

It isn't about better or worse. It is about the risk of insolvency. The higher the ratio the higher the leverage and the higher the risk.

[@neillitfin897]

Sorry can you help me understand the concept?

[@Series7Guru]

@neillitfin897 The debt-to-equity (D/E) ratio compares a company’s total liabilities with its shareholder equity and can be used to assess the extent of its reliance on debt. D/E ratios vary by industry and are best used to compare direct competitors or to measure change in the company’s reliance on debt over time. Among similar companies, a higher D/E ratio suggests more risk, while a particularly low one may indicate that a business is not taking advantage of debt financing to expand. Investors will often modify the D/E ratio to consider only long-term debt because it carries more risk than short-term obligations.

[@neillitfin897]

Thank you so much! Your videos are amazing!

[@Rewboy13]

Is there a list of current assets and liabilities? On my first attempt at the 66, I was given a balance sheet that had multiple entries. I was supposed to calculate Current Ratio using items like accounts receivable, accts payable, inventory, wages payable, etc. Im sure I got it wrong because I didnt include Inventory

[@Series7Guru]

When are you testing? I have a balance sheet lecture video I have not published yet.

[@Rewboy13]

@@Series7Guru On the 14th. 1 week from today

[@ericamaureenwilens1927]

What kind of question could we expect about Standard Deviation?

[@Series7Guru]

The definition

[@ericamaureenwilens1927]

@@Series7Guru oh! That’s easier than I thought 😅

[@Gem20ish]

Series Guru, first thanks for all you do! I used your explication videos for SIE (and passed) I was hoping to do the same for Series 66. However, I am not finding the same follow through section by section just like the SIE. Am I missing something? I don't know if the videos are not showing up in the right order. Any help will be appreciated. Thanks!

[@Series7Guru]

I have not completed the complete explication because I cover the missing section in other lectures in the playlist.

[@Bovauslivin]

Hey Dean! Wondering if you have a series 66 dump sheet? I've been looking and couldn't find one. I guess this is a request if it doesn't exist hahaha

[@Series7Guru]

No

[@Rewboy13]

How would you describe the difference between Geometric and Arithmetic mean?

[@Series7Guru]

I wouldn't. It is not testable. On the test will have toba simple average as illustrated.

[@19sweenbean]

When you are mentioning the standard deviation, you state that a security will vary between 2 SD 92% of the time. Kaplan has the in their book as 95% of the time they also state that this is "generally accepted" are both of these answers right 92% and 95%?

[@Series7Guru]

Not a testable distinction. There is no test question about "generally accepted being 92% or 95%" so neither will be a question or an answer on the test. Both are just examples of what the standard deviation may be. Standard deviation is about volatility of a data set of returns for a security or a portfolio of securities.

[@jordanweinstein6065]

Is this PDF filled out available anywhere?

[@Series7Guru]

No

[@ginnycolarusso4240]

Dean- are all the ratios pulled just from the balance sheet? I had a similar question on the 65

[@Series7Guru]

Yes

[@nicholebazar80]

just took the 66. I had a question on price-to-book. didn't study this terminology & I think I missed the question.

[@Series7Guru]

Thanks for the debrief. Remember most of the test is division. Can't remember what to do take the first number and divide by the second number. In this case price divide by book. Current market price divided by book value.

[@janne6219]

@@Series7Guru Can you just explain the price to book? Like give the definition. You mentioned towards the end of the video that if price higher then book is good? Is that right?

[@Series7Guru]

@@janne6219 I did not say that. I said that book value per share is the theoretical liquidation value of the corporation. Fundamental analyst might compare the book value per share to the market value per share.

[@crusherman22]

Dean for the working capital do you include the inventory or no?

[@crusherman22]

I believe you do but I’m double checking

[@Series7Guru]

Yes. Inventory is included in working capital. Only balance sheet calculation in which it is not included is the quick or acid test ratio. Quick assets is current assets minus inventory.

[@crusherman22]

@@Series7Guru perfect thank you!

[@crusherman22]

@@Series7Guru test is coming up next Thursday

[@Series7Guru]

@@crusherman22 you are welcome. Hope to have some more explication over the weekend.

[@tj.maxfieldsgg471]

Should be 40/90. Correct?

[@Series7Guru]

??? time stamp?

[@tj.maxfieldsgg471]

33:21 debt to equity calculation

[@tj.maxfieldsgg471]

Ltd is $40m in your example

[@tj.maxfieldsgg471]

Ps. You are a rock star Dean!

[@Series7Guru]

Check video description

[@msgugugu1364]

Dean, 33:21, Debt to equity ratio, I think both your explanation and the math are wrong, at least the math is wrong

[@Series7Guru]

See time stamp in video description

[@anniebrecht4262]

@@Series7Guru I am also a little confused about this formula. My study book explains debt-equity as total debt / net worth, which in your example would be $40M/$50M. However, you say it is total debt / total capitalization and then put $50M/$90M (shareholders equity / total cap). Can you just explain this a little bit more? I know in your description you say that this is how the test will test us on it, so I want to make sure I am understanding it.

[@Series7Guru]

@@anniebrecht4262 i have explained it already. It is a buffet. Take what you like. Leave what you don't. I present it as tested not as it is in the real world.

[@xiomaraax3]

Hey dean is there an email i can reach you at?

[@Series7Guru]

[e-mail]

[@tj.maxfieldsgg471]

33:21. Debt to equity calculation.

[@tj.maxfieldsgg471]

33:21. Debt to equity calculation.