Practice Set - 2 | Practice Set | NISM Series XXI-B: Portfolio Managers Certification Examination

Question 1

Which metric adjusts returns for risk taken?

Question 2

Which factor most directly affects asset allocation decisions?

Question 3

Which approach minimizes tracking error?

Question 4

Which scenario reflects proper diversification?

Question 5

Which factor leads to higher transaction costs?

Question 6

Which factor is most critical for retired investors?

Question 7

Which condition may justify portfolio rebalancing?

Question 8

If inflation rises significantly, a portfolio manager should:

Question 9

Which of the following increases portfolio volatility?

Question 10

Which situation indicates style drift?

Question 11

Which scenario indicates poor portfolio performance evaluation?

Question 12

Which factor most impacts long-term portfolio growth?

Question 13

Which type of client requires aggressive portfolio allocation?

Question 14

Which of the following increases portfolio risk unexpectedly?

Question 15

Which action improves portfolio efficiency?

Question 16

Which measure evaluates downside risk?

Question 17

Which of the following is a conflict of interest?

Question 18

Which scenario best reflects improper portfolio management practice?

Question 19

Which of the following best reflects active portfolio management?

Question 20

A mismatch between asset allocation and client goals leads to:

Question 21

If a portfolio consistently underperforms its benchmark, the manager should:

Question 22

Which scenario increases liquidity risk?

Question 23

A high portfolio turnover ratio indicates:

Question 24

Which scenario reflects ethical portfolio management?

Question 25

Which of the following is most affected by market-wide changes?

Question 26

Which decision reflects tactical asset allocation?

Question 27

A portfolio manager ignoring periodic reviews may lead to:

Question 28

A portfolio manager allocating assets equally across classes regardless of client profile is:

Question 29

Which risk arises when a portfolio is overly concentrated?

Question 30

Practice Set - 2