n NISM Certifications
X NISM Series X
Medium

When two portfolios offer the same returns, which should an investor choose?

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

    Higher semi-variance

  2. B

    Lower correlation coefficient

  3. On the efficient frontier

    Correct answer

  4. D

    All of the above

Why this is the answer

The efficient frontier offers portfolios that maximize return for a given risk level, optimal choice.

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