n NISM Certifications
XXI NISM Series XXI-A
Medium

________ is the process of aligning portfolio weights to the strategic asset allocation. It is an important step in the portfolio management process.

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

    Performance measurement

  2. Rebalancing

    Correct answer

  3. C

    Optimization

  4. D

    Evaluation

Why this is the answer

Rebalancing involves adjusting the portfolio to maintain the target asset allocation over time.

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