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

Identify the TRUE statement(s): (A) A diversified index will have a Beta of 1 (B) Unsystematic risk can be measured by Beta (C) A portfolio which has Beta of less than 1 is less risky than the market

Practice question from NISM Series V A - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    a and b

  2. a and c

    Correct answer

  3. C

    b and c

  4. D

    Only b

Why this is the answer

Statement a: A diversified index has a Beta of 1, meaning it moves in sync with the market.

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