n NISM Certifications
X NISM Series X
Medium

Identify which of these is NOT a characteristic feature of a benchmark?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Investible

  2. Covers all securities and sectors

    Correct answer

  3. C

    Clearly defined constituents

  4. D

    Similar risk-return profile to the portfolio

Why this is the answer

A benchmark should represent relevant segments but not necessarily cover all securities.

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