n NISM Certifications
NSM General NISM
Medium

What does “over-diversification” lead to?

Practice question from I-B5 Session 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Higher returns

  2. B

    Lower costs

  3. Diluted portfolio performance

    Correct answer

  4. D

    Reduced risk completely

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

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