n NISM Certifications
XXI NISM Series XXI-A
Medium

What type of preparedness is required to manage risk like a pandemic?

Practice question from NISM XXI A for PMS - Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Tail Risk Assessment

    Correct answer

  2. B

    Diversification

  3. C

    Parametric VaR

  4. D

    Keep negatively correlated securities in the portfolio

Why this is the answer

Tail Risk Assessment involves stress testing and scenario analysis to prepare for extreme events like pandemics.

Test yourself for real

Take a full NISM Series XXI-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.