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

Question 1

Which of the following best explains why indices are important for passive investing?

Question 2

Which factor is most important while selecting stocks for an index?

Question 3

An index provider removes a company due to declining liquidity. This action primarily aims to:

Question 4

Which of the following is the primary purpose of a market index?

Question 5

A narrow index generally consists of:

Question 6

Can a sectoral index outperform a broad market index during certain economic conditions?

Question 7

A company with very high market capitalization but low public shareholding may have reduced weight in a free-float index because:

Question 8

Which of the following is a major use of stock market indices?

Question 9

An equal-weighted index gives:

Question 10

Can an index act as a benchmark for portfolio performance evaluation?

Question 11

A price-weighted index gives greater importance to:

Question 12

Can an index have different methodologies for assigning stock weights?

Question 13

A free-float market capitalization-weighted index primarily excludes:

Question 14

A market capitalization-weighted index assigns greater weight to companies with:

Question 15

The base year of an index is important because it:

Question 16

A benchmark index declining sharply generally indicates:

Question 17

Can indices be used as the basis for index funds and ETFs?

Question 18

Which of the following is most likely affected immediately by a stock split in a price-weighted index?

Question 19

A stock market index primarily represents:

Question 20

Can the value of an index rise even if some constituent stocks decline?

Question 21

Which of the following best describes a broad market index?

Question 22

Can the same stock be part of multiple indices simultaneously?

Question 23

Which of the following best describes free-float market capitalization?

Question 24

An index is reviewed periodically mainly to:

Question 25

Practice Set - 1