n NISM Certifications
NSM General NISM
Medium

According to the session, why is diversification across asset classes important?

Practice question from I-B5 Session 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Because every asset class performs best at the same time

  2. B

    Because markets always move in predictable cycles

  3. Because asset classes perform differently in different periods

    Correct answer

  4. D

    Because equity always underperforms debt

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

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