n NISM Certifications
XVII NISM Series XVII
Medium

What is the co-relation between the change in asset values to the total returns from this asset?

Practice question from NISM Series XVII- Retirement Adviser Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The total returns will always be higher

  2. B

    The total returns will always be lower

  3. C

    The total returns will reduce with an appreciation in asset value

  4. The total returns will reduce with a depreciation in asset value

    Correct answer

Why this is the answer

If the value of the asset depreciates, the total returns from the investment decrease accordingly, reflecting the negative change in asset value.

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