n NISM Certifications
X NISM Series X
Medium

Which of the following is pre-defined in an equity investment?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Dividend Yield

  2. B

    Frequency of Return

  3. C

    Level of Return

  4. Type of Return

    Correct answer

Why this is the answer

In equity investments, the level, frequency, and yield of returns are uncertain, but the type of return is predefined as capital appreciation and/or dividends, depending on the company’s performance.

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