Practice Set - 2 | Practice Set | NISM Series XV: Research Analyst Certification Examination

Question 1

If portfolio contains many assets with high correlation, risk:

Question 2

If returns are normally distributed, most values lie within:

Question 3

Which of the following reduces unsystematic risk?

Question 4

Which situation results in maximum diversification benefit?

Question 5

A portfolio with zero variance is possible when:

Question 6

If all assets in portfolio have zero correlation, risk:

Question 7

Which condition increases portfolio volatility?

Question 8

If expected return increases but risk increases disproportionately, rational investor will:

Question 9

If two portfolios have same return but one has lower variance, which is preferred?

Question 10

Which factor reduces real return the most?

Question 11

If risk-free rate increases, Sharpe ratio will:

Question 12

If correlation between two assets is +1, diversification will:

Question 13

Which factor causes increase in required return?

Question 14

Which concept assumes investors prefer higher return for same risk?

Question 15

Which of the following best measures total portfolio risk?

Question 16

Which situation indicates higher downside risk?

Question 17

Which measure is most sensitive to extreme values?

Question 18

If beta of a stock is 1.5 and market rises by 10%, expected stock return (approx) is:

Question 19

If two assets have identical expected returns but different standard deviations, a risk-averse investor will prefer:

Question 20

Which portfolio is more efficient?

Question 21

If correlation is zero between assets, diversification:

Question 22

If beta is 2, stock is:

Question 23

If return distribution is skewed negatively, it implies:

Question 24

Which factor leads to higher systematic risk?

Question 25

Which factor determines investor required return?

Question 26

If a portfolio beta is 0.8, it implies:

Question 27

If expected return equals risk-free rate, Sharpe ratio is:

Question 28

Which scenario represents optimal diversification?

Question 29

Which scenario indicates inefficient portfolio?

Question 30

If a stock has negative beta, it will:

Question 31

Which factor affects systematic risk?

Question 32

Which investor is indifferent between risk levels?

Question 33

Which of the following is NOT reduced by diversification?

Question 34

If two portfolios have identical beta but different returns, higher return portfolio has:

Question 35

Practice Set - 2