n NISM Certifications
XVII NISM Series XVII
Medium

Some investments give good returns primarily from capital appreciation and are likely to exhibit ________.

Practice question from NISM Series XVII- Retirement Adviser Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. High volatility

    Correct answer

  2. B

    Low risks

  3. C

    Easy liquidity

  4. D

    Steady returns

Why this is the answer

Capital appreciation-driven investments, such as equities, tend to have higher short-term volatility, reflecting fluctuations in market prices.

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