n NISM Certifications
X NISM Series X
Medium

Identify the true statement(s) about Risk. A. Semi-variance is an accurate measure of risk B. Downside risk concerns worse-than-expected returns

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Only A

  2. B

    Only B

  3. Both A and B

    Correct answer

  4. D

    Neither A nor B

Why this is the answer

Risk can be measured as total variability or downside risk, and semi-variance is an accepted measure of downside risk as it focuses only on negative deviations from expected returns.

Test yourself for real

Take a full NISM Series X mock test.

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