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

Identify the true statement(s):(a) Beta is a measure of risk only for equity schemes (b) Variance is a measure of risk for both debt and equity schemes (c) A fall in prices of the debt securities due to default etc is known as a 'credit event'

Practice question from Nism VA Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Only a and b are true

  2. B

    Only a and c are true

  3. C

    Only b and c are true

  4. All a, b, and c are true

    Correct answer

Why this is the answer

Beta is used for equity schemes to measure the volatility relative to the market. Variance is a measure of risk in both debt and equity schemes. A 'credit event' refers to any situation where there is a fall in the price of debt securities due to default, delay in payments, or a rating downgrade.

Test yourself for real

Take a full NISM Series V-A mock test.

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