Practice Set - 1 | Practice Set | NISM Series XXI-B: Portfolio Managers Certification Examination

Question 1

A portfolio manager becomes aware of unpublished information likely to impact stock prices significantly. Trading on this information would most likely constitute:

Question 2

Can legal compliance alone guarantee ethical behavior?

Question 3

Can a portfolio manager accept gifts from brokers that may influence investment decisions?

Question 4

The role of internal controls in portfolio management primarily includes:

Question 5

Can a portfolio manager prioritize one client unfairly over another without disclosure?

Question 6

A portfolio manager selectively shares favorable information while hiding significant risks. This behavior is:

Question 7

Which of the following best describes transparency in portfolio management?

Question 8

Insider trading primarily involves:

Question 9

Which of the following is most likely to weaken investor confidence in PMS providers?

Question 10

Can a portfolio manager guarantee returns to clients under SEBI regulations?

Question 11

Corporate governance mainly refers to:

Question 12

A portfolio manager executes excessive trades mainly to earn higher brokerage commissions. This practice is called:

Question 13

The primary purpose of compliance systems in portfolio management is to:

Question 14

Portfolio managers in India are regulated primarily by:

Question 15

The primary objective of regulating portfolio managers is to:

Question 16

A portfolio manager intentionally hides portfolio risks from clients. This primarily violates:

Question 17

Which of the following best demonstrates conflict of interest in portfolio management?

Question 18

A portfolio manager recommends products mainly because they provide higher commissions. This practice primarily violates:

Question 19

Which of the following is a key principle of ethical portfolio management?

Question 20

SEBI regulations generally require portfolio managers to:

Question 21

Can conflict of interest arise even when no direct financial loss occurs to clients?

Question 22

Fiduciary responsibility of a portfolio manager primarily means:

Question 23

Can unethical conduct damage investor confidence even if no laws are technically violated?

Question 24

A portfolio manager buying securities personally before executing a large client order is an example of:

Question 25

Which action most likely reflects poor corporate governance?

Question 26

Which of the following best reflects good governance in a PMS organization?

Question 27

Which of the following is most likely considered unethical conduct for a portfolio manager?

Question 28

Can portfolio managers disclose confidential client information without consent if no financial loss occurs?

Question 29

A portfolio manager uses confidential client data for personal business opportunities. This primarily violates:

Question 30

Practice Set - 1