n NISM Certifications
NSM General NISM
Medium

What usually happens during rebalancing when equity markets rise significantly?

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

Options

  1. A

    Increase equity exposure further

  2. Shift some gains from equity into debt

    Correct answer

  3. C

    Exit the portfolio entirely

  4. D

    Stop investing for some time

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

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