n NISM Certifications
X NISM Series X
Medium

Why do investors find Alternative Investments difficult to understand?

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

Options

  1. A

    Complexity in accounting for losses

  2. B

    Regular administrative changes

  3. C

    Lack of consistency in fund management

  4. Complexity in fund structuring and terms

    Correct answer

Why this is the answer

The intricate legal and operational structures of alternative investments make them less transparent and harder to comprehend.

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