n NISM Certifications
XXI NISM Series XXI-A
Medium

While managing an equity portfolio, a portfolio manager aims at taking a long position when the market is rising and a short position when the market is declining. This strategy is called:

Practice question from NISM XXI A for PMS - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Value Investing

  2. Momentum investing

    Correct answer

  3. C

    Growth investing

  4. D

    Factor-based investing

Why this is the answer

Momentum investing involves riding ongoing market trends—buying in rising markets and shorting in declining markets based on trend continuation.

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