n NISM Certifications
XVII NISM Series XVII
Medium

Which strategy effectively manages risks of underperformance across assets?

Practice question from NISM Series XVII- Retirement Adviser Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Invest only in lowest-risk assets

  2. B

    Allocate assets based on risk preference

  3. Periodic rebalancing to remove underperformers

    Correct answer

  4. D

    Choose assets based solely on historical best returns

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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