n NISM Certifications
X NISM Series X
Medium

Which is the appropriate behavior for an investment adviser?

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

Options

  1. A

    Follow client instructions blindly

  2. B

    Understand client emotions and be driven by them

  3. C

    Ignore client emotions

  4. Understand emotions but advise objectively

    Correct answer

Why this is the answer

Advisers should empathize with clients’ emotions but maintain objectivity to provide sound advice.

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