n NISM Certifications
XVII NISM Series XVII
Medium

Systematic risks, such as inflation, affect all investments across sectors, unlike unsystematic risks specific to individual companies.

Practice question from NISM Series XVII- Retirement Adviser Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Fall in demand for goods or services

  2. B

    Increasing costs of production

  3. C

    Management issues

  4. Increase in inflation

    Correct answer

Why this is the answer

Inflation is a systematic risk that impacts the entire economy and all asset classes broadly.

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