n NISM Certifications
X NISM Series X
Medium

An investor has fully diversified his wealth in various investment avenues. Which risk-adjusted return ratio is more appropriate to measure the performance of the investor’s portfolio?

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. Treynor’s Ratio

    Correct answer

  2. B

    Sharpe’s Ratio

  3. C

    Tracking Ratio

  4. D

    Sortino Ratio

Why this is the answer

Treynor's Ratio measures performance based on systematic risk (Beta), suitable for well-diversified portfolios.

Test yourself for real

Take a full NISM Series X mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.