n NISM Certifications
XXI NISM Series XXI-A
Medium

If the portfolio value is Rs. 150 cr, the floor value is Rs. 100 cr, and the multiplier is 3, then the exposure to risky assets would be:

Practice question from NISM XXI A for PMS - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Rs. 50 crores

  2. B

    Rs. 100 crores

  3. C

    Rs. 75 crores

  4. Rs. 150 crores

    Correct answer

Why this is the answer

Exposure = Multiplier × (Portfolio Value - Floor Value) = 3 × (150 - 100) = Rs. 150 crores.

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