n NISM Certifications
NSM General NISM
Medium

A fund's portfolio PE is significantly above its category average. How should a distributor interpret this?

Practice question from Advanced B1 S4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The fund is well-diversified across sectors

  2. The fund's portfolio is likely expensive relative to peers

    Correct answer

  3. C

    The fund follows a value investing strategy

  4. D

    The fund has a low risk profile

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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