n NISM Certifications
X NISM Series X
Medium

An investor’s risk appetite has a positive relation with wealth, regular income, and employability, but it decreases with the number of dependents. Therefore, the factor with a negative relation is the number of dependents.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Number of dependents

    Correct answer

  2. B

    Wealth

  3. C

    Regular income

  4. D

    Employability

Why this is the answer

As the number of dependents increases, the investor's risk appetite decreases because of higher financial responsibilities.

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