n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following is a primary goal of risk management in investment portfolios?

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    To eliminate all risks

  2. To identify, assess, and mitigate risks to acceptable levels

    Correct answer

  3. C

    To maximize risk regardless of returns

  4. D

    To avoid diversification

Why this is the answer

Risk management aims to control and reduce risks to acceptable limits.

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