n NISM Certifications
XXI NISM Series XXI-A
Medium

Why do most investors still rely on 'Thumb Rules' even when they have access to detailed financial information?

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

    Inability to understand and analyze detailed financial information

  2. B

    Perceived lack of additional profits from detailed analysis

  3. Both A and B

    Correct answer

  4. D

    Neither A nor B

Why this is the answer

Investors often rely on thumb rules due to limited understanding and the perception that detailed analysis may not yield significant additional gains.

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