n NISM Certifications
X NISM Series X
Medium

What need should drive the asset allocation decision in a portfolio?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Maximize returns

  2. Reach the investor’s goals

    Correct answer

  3. C

    Minimize risk

  4. D

    All of the above

Why this is the answer

Asset allocation should primarily be guided by the investor’s specific financial goals, with risk and return considerations secondary.

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