n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following is not considered a cost of rebalancing?

Practice question from NISM XXI A for PMS - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Brokerage

  2. B

    Equity research

  3. Losses due to misalignment of allocation

    Correct answer

  4. D

    Tax on capital gains

Why this is the answer

Costs of rebalancing include transaction costs, taxes, and brokerage, but not losses from portfolio drift.

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