n NISM Certifications
XXI NISM Series XXI-A
Medium

The primary purpose of a 'Risk-Return' trade-off in portfolio management is:

Practice question from NISM XXI A for PMS - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    To maximize returns regardless of risk

  2. To balance the level of risk with expected returns

    Correct answer

  3. C

    To minimize all risks at the expense of returns

  4. D

    To avoid risk entirely

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

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NISM XXI A for PMS - Mock Test 2