n NISM Certifications
NSM General NISM
Medium

What is the role of asset allocation in investor behavior?

Practice question from I-B5 Session 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Maximizes short-term returns

  2. B

    Eliminates all risks

  3. Helps balance risk and reduce panic during market volatility

    Correct answer

  4. D

    Focuses only on equity investments

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

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