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

Performance of a portfolio is influenced by _______.

Practice question from NISM Series V A - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Stock Selection

  2. B

    Investment Policy

  3. C

    Asset Allocation Strategy

  4. All of the above

    Correct answer

Why this is the answer

The performance of a portfolio is influenced by several factors including stock selection, investment policy, and asset allocation strategy. Stock selection determines individual asset performance, the investment policy sets the broader goals and objectives, and asset allocation divides investments among various asset classes to balance risk and return.

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