n NISM Certifications
XXI NISM Series XXI-A
Medium

An investor who expects the market to decline would likely adopt which of the following strategies?

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Long-only equity investments

  2. Short selling or using put options

    Correct answer

  3. C

    Increasing exposure to high-beta stocks

  4. D

    Investing in high-yield bonds only

Why this is the answer

To profit from a declining market, investors may short sell or buy put options.

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