n NISM Certifications
XXI NISM Series XXI-A
Medium

A Portfolio Manager wants to follow an active investment strategy. What point(s) will he put forward regarding the Efficiency of Markets, to support his decision? A. Any price-sensitive information is not reflected into the price quickly, B. Any price-sensitive information is not reflected accurately in the prices , C. The markets are not strongly efficient at all times

Practice question from NISM XXI A for PMS - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Both B and C

  2. B

    Both A and C

  3. C

    Both A and B

  4. All A, B, and C

    Correct answer

Why this is the answer

Active managers believe markets are not always perfectly efficient; information may not be reflected immediately or fully, allowing for opportunities to outperform.

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