n NISM Certifications
NSM General NISM
Medium

What is one major reason asset allocation is considered the key driver of long-term portfolio performance?

Practice question from I-B5 Session 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    It helps predict stock market movements

  2. B

    It focuses only on selecting the best funds

  3. It determines the mix of assets that influence portfolio outcomes

    Correct answer

  4. D

    It eliminates all market risk

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

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