n NISM Certifications
X NISM Series X
Medium

An investor deposits Rs.50 lakhs, and the fund earns Rs.5 lakhs. What is his effective return?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    16.66%

  2. 10%

    Correct answer

  3. C

    12.25%

  4. D

    30%

Why this is the answer

Return = (Rs 5 lakh / Rs 50 lakh) * 100 = 10%.

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