n NISM Certifications
XXI NISM Series XXI-A
Medium

The main purpose of "Asset Allocation" is to:

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Decide the specific stocks to buy

  2. Spread investments among different asset classes to optimize risk and return

    Correct answer

  3. C

    Pick the best individual securities

  4. D

    Maximize short-term gains

Why this is the answer

Asset allocation diversifies investments to balance risk and return.

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