n NISM Certifications
X NISM Series X
Medium

How is Strategic Asset Allocation best described?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Adjusting allocations based on market mispricing

  2. B

    Investing based on algorithms

  3. Rebalancing as per changing financial goals

    Correct answer

  4. D

    Maintaining same asset ratios throughout the investment horizon

Why this is the answer

Strategic asset allocation involves setting a long-term asset mix aligned with financial goals and periodically rebalancing to accommodate changes in objectives or circumstances.

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