NISM INVESTMENT ADVISER LEVEL 2 - 4

NISM INVESTMENT ADVISER LEVEL 2

 39

Mock Test with Answer key - Click Here >>

Q 1. Which of these tools of investments generally requires the maximum demand on the time of an investor?

SIP in Mutual Funds

Discretionary Portfolio Management services

Non- Discretionary Portfolio Management services

Direct Investing
 
Q 2. There is no fixed maturity for _____ .

Fixed Deposits

Debentures

Close Ended Mutual Funds

Open Ended Mutual Funds
 
Q 3. Life insurance is a good example of _______ .

Asset protection needs

Income protection need

Income replacement need

All of the above
 
Q 4. Who has to complete the Know Your Customer (KYC) process when an investment is done by a minor?

The Parent or the Guardian

The minor himself / herself

Both Minor and Guardian

KYC is not required when an investment is done by minor
 
Q 5. The extent of reduction in portfolio risk from an asset depends strongly on its ______ .

Higher returns from the asset

Negative correlation with other assets in the portfolio

Higher variance

Higher standard deviation
 
Q 6. GDP computation values goods and services at their ________.

Cost Prices

Market Prices

Depreciated Prices

None of the above
 
Q 7. ______ is never disclosed in a FACTSHEET.

The composition of the portfolio

Sector wise allocation

Comparison with benchmark returns

The timing of investments
 
Q 8. The Core Portfolio is that portfolio of securities that have been bought keeping the short terms market trends in mind and to benefit from such short term movements - State True or False ?

True

False
 
Q 9. Model Portfolio' means ___________.

A single portfolio for all investors of an age group

A portfolio for each client profile, which is customised for each investor

A special portfolio suitable for all types of investors

A portfolio which gives the highest returns
 
Q 10. Longer time to expiry in a forex derivative __________.

increases the premium on Call Options but reduces the premium on Put Options

increases the premium on Put Options but reduces the premium on Call Options

increases the premium on both Call and Put Options

decreases the premium on both Call and Put Options
 
Q 11. _________ gives the buyer a right but not the obligation to SELL the underlying at a predetermined price during a predetermined period.

Put Option

Call Option

In the Money CALL Option

Futures
 
Q 12. Which of these asset classes may do well when there is low growth and low inflation in the economy and interest rates are being cut?

Equities

Bonds

Gold

Art
 
Q 13. The main benefit of diversification in a portfolio is __________.

Maximising returns

Guaranteeing returns

Enhancing risk adjusted returns

Eliminating risk
 
Q 14. A person can have a maximum of ____ PPF Account(s) in his/her name in India.

5

3

2

1
 
Q 15. Which of these sector stocks is will be LESS popular for investment when the economy is in an UPTURN?

Commodities

Pharmaceuticals

Construction

Auto

Mock Test with Answer key - Click Here >>