n NISM Certifications
XXI NISM Series XXI-A
Medium

Identify the TRUE statement concerning Index Rebalancing:

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

Options

  1. A

    It affects the cash flows of passive funds

  2. B

    It increases transaction costs for passive fund managers

  3. C

    It influences the market prices of shares

  4. All of the above

    Correct answer

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

Test yourself for real

Take a full NISM Series XXI-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.