NISM Series XXI-A free mock test questions

A portfolio manager expects a temporary but sharp correction in the equity market over the next quarter. The manager wants to benefit from the downside while limiting the initial cash outflow compared to outright short selling. Which strategy would be MOST appropriate?

Which of the following is MOST likely to reduce the effective long-term return earned by mutual fund investors despite favorable market performance?

A portfolio manager purchases companies trading below estimated intrinsic value based on discounted cash flow analysis, low P/B multiples, and temporary market pessimism. This investment approach is BEST described as:

Which of the following investment avenues is MOST suitable for accumulating wealth toward post-retirement financial goals over a horizon exceeding 20 years?

The Beta coefficient of a stock primarily measures:

An investor expects markets to remain highly volatile but broadly bullish over the medium term. Which derivative strategy would MOST likely provide leveraged upside participation with limited downside loss?

Which of the following statements regarding mutual funds is MOST accurate?

A value-oriented fund manager is MOST likely to invest in companies exhibiting:

A security has a beta of 1.6. Which interpretation is MOST appropriate?

An investor wishes to hedge an existing diversified equity portfolio against a near-term market decline while retaining upside potential if markets rise unexpectedly. Which strategy is MOST suitable?

A bond fund manager wants to measure how sensitive a bond's market price is to changes in prevailing interest rates. Which of the following measures is MOST directly used for this purpose?

Which of the following BEST defines an investment portfolio from the perspective of portfolio management?

A resident individual investor in FY 2025–26 has the following PMS income: Equity STCG under Section 111A: ₹2,50,000; Equity LTCG under Section 112A: ₹3,00,000; Interest income from debt securities: ₹40,000; Dividend income: ₹12,000. Assuming LTCG exemption under Section 112A is ₹1,25,000 and the investor falls under the 30% slab, total tax liability (excluding cess) is closest to:

A company's liquidity ratio is significantly below the industry average. This MOST likely indicates that the company:

The Black–Scholes valuation framework is primarily applied for pricing:

A portfolio manager identifies a company with rapidly growing revenues, aggressive expansion plans, low dividend payout, and high expected future earnings growth. The stock is BEST categorized as:

A futures contract is BEST described as:

A portfolio manager executes repeated non-delivery-based speculative trades that are squared off periodically without actual delivery of securities. Under SEBI PMS Regulations, this activity is:

Which of the following would MOST likely qualify as an alternative investment asset class?

The Price-to-Earnings (P/E) ratio is MOST commonly used by analysts to:

In portfolio management, financial leverage refers to:

A company has the following financial details: Market Capitalization = ₹8,000 crore; Total Debt = ₹3,000 crore; Cash & Cash Equivalents = ₹1,200 crore; EBITDA = ₹1,600 crore. The EV/EBITDA multiple is closest to:

In derivatives risk management, the "Greeks" are primarily used to measure:

Which of the following characteristics is MOST closely associated with a closed-ended mutual fund?

In portfolio performance evaluation, Alpha represents:

A portfolio manager estimates: Real risk-free rate = 3%; Expected inflation = 5%; Portfolio risk premium = 4%. Using the Fisher approximation method, the nominal risk-free rate and required portfolio return are closest to:

A portfolio generated annual return of 18%, the risk-free rate is 7%, and portfolio volatility is 11%. The Sharpe Ratio is closest to:

The primary objective of diversification within a portfolio is to:

A European-style call option provides its holder the right, but not the obligation, to:

The market capitalization of a listed company is determined by: