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

Identify the TRUE statement with respect to Time Horizon for financial goals.

Practice question from Nism VA Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Longer the horizon to the goal, the ability to take risk is higher

    Correct answer

  2. B

    Longer the horizon to the goal, the ability to take risk is lower

  3. C

    Shorter the horizon to the goal, the ability to take risk is higher

  4. D

    Time horizon has no link to financial goals

Why this is the answer

The longer the time horizon, the more risk an investor can take, as there is more time to recover from market volatility.

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