n NISM Certifications
XXI NISM Series XXI-A
Medium

What does 'Asset Allocation' primarily aim to do?

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

    Select individual stocks for maximum gains

  2. Distribute investments across different asset classes to balance risk and return

    Correct answer

  3. C

    Invest solely in real estate

  4. D

    Avoid diversification to concentrate on high-risk assets

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

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