n NISM Certifications
X NISM Series X
Medium

Which type of equity is suitable for an investor in the accumulation phase?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Equity with Zero beta

  2. B

    Equity with Low beta

  3. Equity with High beta

    Correct answer

  4. D

    None of the above

Why this is the answer

Young investors with a long horizon can tolerate higher volatility for higher returns, making high beta stocks suitable.

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