n NISM Certifications
X NISM Series X
Medium

When assessing a retirement product approximately 15 years before retirement, what volatility profile is appropriate?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    High volatility history allowed

  2. B

    Low volatility history preferred

  3. C

    No volatility history required

  4. Decent volatility-adjusted return over adequate horizon

    Correct answer

Why this is the answer

A balanced approach with moderate volatility and reasonable returns is suitable, considering the investment horizon and risk capacity at 15 years before retirement.

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