n NISM Certifications
X NISM Series X
Medium

Which factor can lead to incorrect investment decision-making when evaluating portfolio performance?

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Comparing against wrong benchmarks

  2. B

    Comparing positive returns with negative benchmark returns

  3. C

    Comparing negative returns with positive benchmark returns

  4. All of the above

    Correct answer

Why this is the answer

Wrong benchmarks or inappropriate comparisons can mislead performance assessment and lead to poor decisions.

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