n NISM Certifications
V-A NISM Series V-A
Medium

Which statement is FALSE with reference to risk appetite?

Practice question from Nism VA Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Risk appetite can be assessed by risk profiling

  2. B

    Preferred risk appetite is different from ideal risk appetite

  3. C

    Risk appetite indicates level of risk that investor is comfortable with

  4. People of same age will have same risk appetite

    Correct answer

Why this is the answer

Risk appetite is influenced by various factors, not just age. Different individuals, even within the same age group, can have different financial goals, risk tolerance, and investment preferences.

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