NISM Chapter 1 8%

Which one of these is not a factor to evaluate investment?

• Safety
• Liquidity
• Return
• Reachability

Which one of these is not an asset class?

• Commodities
• Mutual Fund
• Stock/Equity
• Real Estate

Choose the correct types of asset allocation?

• Credit, Inflation & Price
• Diversification, Rebalancing & Strategic
• Strategic, Tactical & Dynamic
• Heuristic, Confirmation & Familiarity

Select the one that is not a type of investment risk?

• Cyber Risk
• Inflation Risk
• Market Risk
• Credit Risk

Which one of the following statement perfectly defines "loss aversion"?

• The ability to take high risk for profitability
• A bear market resulting to investor's loss
• One's tendency to prefer avoiding losses
• One who invests only in equity market

What is real rate of return?

• Return that the investor gets after payment of all expenses
• Return that the investor gets after taxes
• Return that the investor gets after adjusting the risks
• Return that the investor gets after adjusting inflation

The purchasing power of currency changes on account of which of the following?

• Asset Allocation
• Compound Interest
• Inflation
• Diversification

What is asset allocation?

• Asset Allocation is keeping certificates of the physical securities in proper places
• Allocating the available money to all the securities available
• Allocating the right proportion of funds to equity, debt and money market securities
• None of the above

In order to ascertain risk appetite, the following must be evaluated?

• The need to take risk
• The ability to take risk
• The willingness to take risk
• All of the above

What is diversification?

• To diversify the investment amount in periodic manner
• Investing across various asset classes to spread the risk of loss
• Investing in sector funds generates a way to diversification
• It is an investment style to reduce inflation risk