n NISM Certifications
X NISM Series X
Medium

Which of the following is NOT an assumption of Standard Finance Theories?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Investors mitigate risks in decisions

    Correct answer

  2. B

    Investors are self-interested utility maximizers

  3. C

    Investors update beliefs with new information

  4. D

    Investors have access to all information

Why this is the answer

Standard theories assume rationality, risk aversion, belief updating, and perfect information, but do not specifically state that investors mitigate risks in decision-making.

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