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

Question 1

Can a portfolio consisting entirely of risky assets still lie on the efficient frontier?

Question 2

Which factor is most important in determining diversification benefits?

Question 3

Modern Portfolio Theory assumes investors are generally:

Question 4

Portfolio risk in Modern Portfolio Theory is commonly measured using:

Question 5

Can combining highly positively correlated assets provide strong diversification benefits?

Question 6

A correlation coefficient of +1 between two assets indicates:

Question 7

A portfolio lying below the efficient frontier is considered:

Question 8

Which of the following best describes an efficient portfolio?

Question 9

Modern Portfolio Theory primarily focuses on:

Question 10

The efficient frontier in Modern Portfolio Theory represents:

Question 11

A rational investor under Modern Portfolio Theory is expected to prefer:

Question 12

Can two assets with negative correlation reduce overall portfolio risk when combined?

Question 13

A portfolio manager selecting assets solely based on highest expected returns without considering correlation is ignoring:

Question 14

The risk-return tradeoff in Modern Portfolio Theory suggests that:

Question 15

Can two portfolios with identical expected returns have different levels of risk?

Question 16

The primary objective of diversification is to:

Question 17

Can diversification completely eliminate systematic market risk?

Question 18

According to Modern Portfolio Theory, diversification mainly helps in reducing:

Question 19

A correlation coefficient of -1 between two assets indicates:

Question 20

Practice Set - 1