n NISM Certifications
X NISM Series X
Medium

Why do investors tend to rely on "thumb rules" despite detailed financial reports?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    They believe reports won't add value

  2. B

    They lack the ability to analyze detailed data

  3. Both reasons (lack of ability and perceived limited gains)

    Correct answer

  4. D

    Neither reason applies

Why this is the answer

Investors often depend on simplified rules due to difficulty analyzing complex data and a perception that detailed analysis won't significantly improve gains.

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