n NISM Certifications
X NISM Series X
Medium

Which factors are crucial in determining equity exposure in a portfolio?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Investor’s risk appetite

  2. B

    Need for liquidity

  3. C

    Investment horizon

  4. All of the above

    Correct answer

Why this is the answer

Equity allocation depends on risk tolerance, liquidity needs, and investment horizon, among other factors.

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