n NISM Certifications
X NISM Series X
Medium

Which scenario best indicates rational decision-making by investors?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Diversifying across multiple industries

    Correct answer

  2. B

    Selling in panic during market shocks

  3. C

    Investing based on company reputation alone

  4. D

    Confusing random wins with skill

Why this is the answer

Diversification spreads risk and reflects rational, informed decision-making based on systematic analysis.

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