n NISM Certifications
XVII NISM Series XVII
Medium

How does systematic periodic investment in a volatile equity market affect the average acquisition cost?

Practice question from NISM Series XVII- Retirement Adviser Mock Test 8 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Only when markets decline does it lower the cost

  2. B

    Investment should occur only at low prices

  3. More units are bought when prices are low, reducing average cost

    Correct answer

  4. D

    No impact on average cost

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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