Practice Set - 3 | Practice Set | NISM Series XXI-B: Portfolio Managers Certification Examination

Question 1

Which of the following is most likely considered an aggressive PMS strategy?

Question 2

Which statement regarding PMS reporting is correct?

Question 3

Which of the following scenarios best represents fiduciary misconduct?

Question 4

Which of the following situations most likely represents mis-selling in PMS?

Question 5

A client in discretionary PMS complains that certain stocks were purchased without approval. The portfolio manager’s best defense would be:

Question 6

The main reason PMS providers maintain detailed client documentation is to:

Question 7

Can a portfolio manager refuse redemption or withdrawal requests merely because market conditions are unfavorable?

Question 8

A portfolio manager shares unpublished large buy orders of clients with external traders. This practice primarily violates:

Question 9

Which of the following is the strongest indicator that a PMS strategy may be unsuitable for a client?

Question 10

A PMS provider allocates profitable trades to proprietary accounts and loss-making trades to client accounts. This practice is best described as:

Question 11

A portfolio manager recommends PMS to an investor with very limited investment capital despite minimum eligibility requirements. This is primarily an issue related to:

Question 12

Can a PMS provider claim that past returns ensure similar future performance?

Question 13

A PMS client insists on investing the entire portfolio in a single illiquid stock despite warnings. The portfolio manager should:

Question 14

Which of the following is most likely to increase operational risk in PMS?

Question 15

A PMS provider repeatedly delays client statements and trade confirmations. This primarily affects:

Question 16

Can operational negligence by a portfolio manager lead to regulatory penalties even if no client complaint is filed?

Question 17

A PMS client agreement is silent regarding performance fees. Can the portfolio manager later impose such fees unilaterally?

Question 18

Which of the following operational controls is most useful in preventing unauthorized transactions?

Question 19

A portfolio manager executes a trade error that causes loss to a client portfolio. Operationally, the loss should generally be borne by:

Question 20

Practice Set - 3