NISM 21B Portfolio Managers Exam Notes

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  • Expected Return: Weighted average of asset returns.
  • Portfolio Risk: Depends on risks, correlations.
  • Diversification: Reduces unsystematic risk.
  • Correlation Coefficient: Measures asset co-movement, -1 to +1.
  • Covariance: Quantifies joint return movements.

NISM 21B Portfolio Managers

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