n NISM Certifications
V-A NISM Series V-A
Medium

Calculate the Average Holding Period if the portfolio turnover ratio is 50 percent.

Practice question from NISM Series V A - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    50 months

  2. 2 Years

    Correct answer

  3. C

    3.5 Years

  4. D

    15 Years

Why this is the answer

The Average Holding Period is calculated using the formula: \[ \text{Average Holding Period} = \frac{12}{\text{Portfolio Turnover Ratio}} \]

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