n NISM Certifications
X NISM Series X
Medium

Portfolio rebalancing should be done ______.

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Daily

  2. At regular intervals

    Correct answer

  3. C

    Every decade

  4. D

    Never

Why this is the answer

Rebalancing is done periodically to realign the portfolio with its original risk-return profile due to changes in asset prices over time.

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