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

Question 1

Can risk and uncertainty exist even in well-diversified investment portfolios?

Question 2

Can diversification across industries help reduce portfolio volatility?

Question 3

Can short-term government securities still carry inflation risk?

Question 4

Business risk is primarily related to:

Question 5

Which of the following best describes political risk?

Question 6

Interest rate risk is most closely associated with:

Question 7

Credit risk primarily arises when:

Question 8

Risk tolerance refers to:

Question 9

Can diversification significantly reduce unsystematic risk?

Question 10

Reinvestment risk primarily affects investors when:

Question 11

Currency risk mainly affects investments involving:

Question 12

Can inflation risk reduce real investment returns even if nominal returns remain positive?

Question 13

Risk in investments generally refers to:

Question 14

Liquidity risk refers to the possibility that:

Question 15

Can a diversified portfolio still suffer losses during economic downturns?

Question 16

Operational risk primarily arises from:

Question 17

Which of the following is most likely caused by macroeconomic factors?

Question 18

A highly leveraged company is generally exposed to greater:

Question 19

Which risk arises from inability to convert assets into cash quickly?

Question 20

Which of the following best describes systematic risk?

Question 21

Default risk is most closely associated with:

Question 22

Market risk is most closely associated with:

Question 23

Which of the following is most likely considered unsystematic risk?

Question 24

Can higher expected returns generally involve higher levels of risk?

Question 25

Practice Set - 1