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

Question 1

Which bias may cause investors to underestimate risks after a long bull market?

Question 2

Which behavioural bias is most associated with excessive trading activity?

Question 3

Can fear during market crashes lead investors to sell quality assets irrationally?

Question 4

Mental accounting refers to the tendency of investors to:

Question 5

Recency bias occurs when investors:

Question 6

Can behavioural biases contribute to market inefficiencies?

Question 7

Can behavioural finance explain speculative bubbles in financial markets?

Question 8

Loss aversion refers to the tendency of investors to:

Question 9

A confirmation bias causes investors to:

Question 10

Herding behavior in financial markets occurs when investors:

Question 11

Anchoring bias occurs when investors:

Question 12

Which behavioural bias may prevent investors from admitting investment mistakes?

Question 13

Behavioural finance challenges the traditional assumption that investors are always:

Question 14

Can investors remain attached to losing investments because of emotional factors?

Question 15

Which of the following best describes irrational exuberance?

Question 16

Which of the following is most closely associated with regret aversion?

Question 17

Which of the following best describes overconfidence bias?

Question 18

Can emotional reactions influence rational investment decisions?

Question 19

An investor buys a stock primarily because many others are buying it. This most closely reflects:

Question 20

An investor refusing to sell a losing stock because they hope it returns to purchase price is mainly influenced by:

Question 21

Availability bias occurs when investors:

Question 22

Which of the following best describes hindsight bias?

Question 23

Can investor sentiment affect short-term market prices independently of fundamentals?

Question 24

Framing effect refers to the tendency of investors to:

Question 25

Can experienced investors also suffer from behavioural biases?

Question 26

Can framing identical investment outcomes differently influence investor choices?

Question 27

Can behavioural finance coexist with traditional finance theories?

Question 28

The disposition effect is most closely related to investors:

Question 29

A portfolio manager ignoring negative evidence because it conflicts with existing beliefs is most likely demonstrating:

Question 30

Practice Set - 1