n NISM Certifications
NSM General NISM
Medium

Why does asset allocation reduce panic during market downturns?

Practice question from I-B3 Session 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    It eliminates market risk

  2. B

    It ensures fixed returns

  3. It spreads risk across asset classes

    Correct answer

  4. D

    It focuses only on equity

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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