n NISM Certifications
X NISM Series X
Medium

The calculation of Gross FIRR involves equating the present value of capital commitments to the present value of the portfolio valuation, reflecting the profitability of the fund before fees and expenses.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Negative cash flows equated to positive cash flows

  2. B

    Discounted at hurdle rate for comparison

  3. Capital commitments to portfolio valuation

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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