n NISM Certifications
X NISM Series X
Medium

What is essential in evaluating a portfolio’s performance?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Benchmark comparison

    Correct answer

  2. B

    Positive return alone

  3. C

    Multiple similar investments

  4. D

    All of the above

Why this is the answer

Comparing performance against appropriate benchmarks allows assessment of relative success and skill in investment management.

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