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

Question 1

Which risk arises due to changes in laws, regulations or government actions?

Question 2

Can a government bond still carry interest rate risk even if default risk is negligible?

Question 3

Can diversification across asset classes help reduce overall portfolio risk?

Question 4

A decline in the purchasing power of money mainly represents:

Question 5

Can a highly liquid asset still experience market risk?

Question 6

A company heavily dependent on one product line mainly faces:

Question 7

Which of the following is most likely an example of systematic risk?

Question 8

A bond investor faces reinvestment risk primarily when:

Question 9

Which of the following is least likely to be eliminated through diversification?

Question 10

A company defaulting on bond payments primarily exposes investors to:

Question 11

A portfolio invested entirely in one sector is most exposed to:

Question 12

Can an investment with low credit risk still carry liquidity risk?

Question 13

Which of the following best describes concentration risk?

Question 14

Can investors with higher risk tolerance generally withstand larger market fluctuations?

Question 15

Interest rate increases generally cause bond prices to:

Question 16

Which type of risk is associated with failures in internal controls and systems?

Question 17

A sudden depreciation in domestic currency mainly affects investors through:

Question 18

Can short-term market volatility affect even fundamentally strong companies?

Question 19

Can leverage magnify both gains and losses for investors?

Question 20

An investor unable to sell securities quickly during market stress mainly faces:

Question 21

A fall in stock prices across almost all industries is most likely due to:

Question 22

Which type of risk is most difficult to eliminate through diversification?

Question 23

Can inflation cause real returns to become negative despite positive nominal returns?

Question 24

Which statement best reflects the relationship between risk and return?

Question 25

Practice Set - 2