n NISM Certifications
XXI NISM Series XXI-A
Medium

The term 'Hedging' refers to:

Practice question from NISM XXI A for PMS - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Taking a position to reduce or eliminate risk

    Correct answer

  2. B

    Speculating on future price movements

  3. C

    Increasing market exposure for higher returns

  4. D

    Diversifying investments across different sectors

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

Test yourself for real

Take a full NISM Series XXI-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.