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

Question 1

Which statement regarding asset allocation is correct?

Question 2

If a portfolio mainly invests in large-cap Indian equities, which benchmark is most appropriate?

Question 3

Asset allocation primarily refers to:

Question 4

A correlation coefficient of +1 between two asset classes indicates:

Question 5

Correlation coefficients generally lie between:

Question 6

An investor seeking stable income after retirement is most likely in which lifecycle phase?

Question 7

Which statement best differentiates Tactical Asset Allocation from Strategic Asset Allocation?

Question 8

Can two different asset classes show higher correlation during periods of financial distress?

Question 9

Which of the following is considered an asset class?

Question 10

Which document forms the foundation of the portfolio management process?

Question 11

Benchmarking a portfolio mainly helps in:

Question 12

The IPS mainly helps in:

Question 13

The process of forecasting expected returns and risks of asset classes mainly uses:

Question 14

Can a long-term bond portfolio appropriately use a large-cap equity index as benchmark?

Question 15

Which of the following is most likely to trigger immediate portfolio rebalancing?

Question 16

Can the lifecycle stages of investing overlap in practice?

Question 17

The need for portfolio rebalancing mainly arises because:

Question 18

Illiquid investments generally make rebalancing:

Question 19

Which phase is characterized by income exceeding expenses and increasing focus on capital preservation?

Question 20

A young investor with long investment horizon and rising income is usually better suited for:

Question 21

Which of the following best describes the accumulation phase?

Question 22

Can portfolio rebalancing become necessary even if investor goals remain unchanged?

Question 23

A portfolio manager reduces equity exposure expecting a market correction. This is an example of:

Question 24

Can Tactical Asset Allocation increase exposure to debt when equities appear overvalued?

Question 25

A portfolio manager compares a mid-cap equity portfolio with a government bond index. This comparison is flawed because:

Question 26

Can tax liability influence the frequency of portfolio rebalancing?

Question 27

The gifting phase of investing is usually characterized by:

Question 28

Which of the following is generally included in an investor’s IPS?

Question 29

Which of the following is a major cost associated with portfolio rebalancing?

Question 30

A highly diversified portfolio is mainly designed to:

Question 31

Strategic Asset Allocation primarily focuses on:

Question 32

Tactical Asset Allocation generally attempts to:

Question 33

The phrase 'time in the market' is more closely associated with:

Question 34

A portfolio benchmark should ideally:

Question 35

Practice Set - 1