NISM 10A Investment Adviser Level 1 Notes

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  • Covariance Role: Influences portfolio risk through asset return relationships.
  • Estimation Challenges: Historical data may not predict future returns accurately.
  • Investor Preferences: Shape portfolio construction based on risk tolerance.
  • Efficient Portfolio: Offers the highest return for a specific risk level.
  • Risk Reduction: Achieved through diversification across uncorrelated assets.

NISM 10A NISM Investment Adviser Level 1

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