n NISM Certifications
X NISM Series X
Medium

Regarding risk appetite, individuals with steady income tend to:

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Become risk-averse due to stable income

  2. B

    Be risk-neutral and indifferent

  3. Take more risks than those with unstable income

    Correct answer

  4. D

    Avoid risk altogether

Why this is the answer

Regular income provides financial stability, enabling individuals to accept higher risks in investments compared to those with unpredictable earnings.

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