Options
- A
Diversification of business by companies
- B
Positive co-movement with economic indicators
- C
Time lag in macroeconomic responses
-
Cyclicality in business
Correct answer
Why this is the answer
Investing across sectors with different cyclical behaviors reduces overall portfolio risk.
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.