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NISM Investment Advisor Investment Adviser — practice questions

Explore 30 free Investment Adviser questions in NISM Investment Advisor Finance. Open each question or exercise to read its content, reference answers and available explanation.

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Investment Adviser questions and exercises with answers

Showing questions 1–30 of 30.

The two quantities often called the two Rs of finance are return and:Read the answer and worked solution →The benefit or profit an investor expects from an expenditure is the:Read the answer and worked solution →The uncertainty about what an investment's return will actually be is called:Read the answer and worked solution →The total return that actually occurred over a past period is the:Read the answer and worked solution →A share fell in price but still gave a positive total dollar return because of the:Read the answer and worked solution →To compare investments held for different lengths of time, returns are expressed on a basis that is:Read the answer and worked solution →The percentage return earned over the whole time an investment is held is the:Read the answer and worked solution →The compounded annual return, derived using time value of money, is also called the:Read the answer and worked solution →Unless every year's return is identical, the geometric average return is:Read the answer and worked solution →The most commonly used measure of the volatility of returns is the:Read the answer and worked solution →A stock with a larger standard deviation of annual returns is likely to land:Read the answer and worked solution →A collection of stocks held together by one investor is called a:Read the answer and worked solution →Owning a variety of stocks rather than one favourite is the practice of:Read the answer and worked solution →Investors practise diversification mainly in order to:Read the answer and worked solution →The volatility of a two stock portfolio is not simply the average of the two stocks' volatilities because of their:Read the answer and worked solution →Combining stocks that are not perfectly positively correlated in a portfolio:Read the answer and worked solution →Risk tied to events at one particular company is called firm specific or:Read the answer and worked solution →Portfolio diversification protects an investor mainly against:Read the answer and worked solution →The risk that never goes away however widely an investor diversifies is:Read the answer and worked solution →The model that focuses on systematic risk when finding a required return is the:Read the answer and worked solution →The extra return earned for bearing risk is called the:Read the answer and worked solution →Investors are not rewarded for firm specific risk because that risk can be:Read the answer and worked solution →Catch the risk wordsRead the answer and worked solution →Pop the return measuresRead the answer and worked solution →Run the investing gatesRead the answer and worked solution →Slice the finance termsRead the answer and worked solution →Diversifiable or notRead the answer and worked solution →Sort the investing ideasRead the answer and worked solution →Type the numberRead the answer and worked solution →Risk and return bingoRead the answer and worked solution →

Worked practice questions

The two quantities often called the two Rs of finance are return and:

  1. Risk
  2. Rate
  3. Rent
  4. Rule
Show answer and solution

Correct answer: A. Risk

1. Neither number means much on its own. 2. An investor weighs the gain against the uncertainty. 3. So the pair is return and risk. _Source: OpenStax Principles of Finance, Chapter 15, Risk and Return._

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The benefit or profit an investor expects from an expenditure is the:

  1. Register
  2. Return
  3. Reserve
  4. Receipt
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Correct answer: B. Return

1. Money is committed in the hope of gain. 2. That expected gain has a name. 3. It is the return. _Source: OpenStax Principles of Finance, Chapter 15, Risk and Return._

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The uncertainty about what an investment's return will actually be is called:

  1. Risk
  2. Rate
  3. Rent
  4. Rule
Show answer and solution

Correct answer: A. Risk

1. Expected and actual returns often differ. 2. That uncertainty has its own name. 3. It is risk. _Source: OpenStax Principles of Finance, Chapter 15, Risk and Return._

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More Finance topics

FinanceRisk and Return