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

Question 1

Which risk is reduced through hedging strategies?

Question 2

Which type of allocation remains fixed regardless of market changes?

Question 3

Which client type prefers capital preservation over growth?

Question 4

A portfolio with low beta but high returns indicates:

Question 5

Which metric indicates sensitivity of portfolio to market movements?

Question 6

Which measure indicates excess return over risk-free rate per unit risk?

Question 7

Which scenario suggests over-diversification?

Question 8

Which strategy aligns with long-term wealth creation?

Question 9

Which situation indicates negative alpha?

Question 10

Which scenario reflects ethical misconduct?

Question 11

If a portfolio manager consistently takes excessive risk for higher returns, this violates:

Question 12

Which risk arises when assets cannot be sold quickly at fair value?

Question 13

Which factor can distort portfolio performance evaluation?

Question 14

Which factor is least relevant in portfolio construction?

Question 15

Which metric shows excess return relative to benchmark?

Question 16

Which scenario best reflects mismatch in investment horizon?

Question 17

Which approach aims to exploit market inefficiencies?

Question 18

Which scenario reflects improper diversification?

Question 19

Which factor reduces portfolio efficiency?

Question 20

Which factor most influences long-term asset allocation?

Question 21

Which scenario indicates good portfolio discipline?

Question 22

Which approach is best for minimizing costs?

Question 23

Which situation leads to portfolio drift?

Question 24

A portfolio manager reallocates assets frequently without clear strategy. This most likely results in:

Question 25

Practice Set - 3