NISM 21B Portfolio Managers Exam Notes

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  • Portfolio Construction: Balances risk, return, goals.
  • Correlation Impact: Lower correlation reduces risk.
  • Variance Calculation: Combines asset risks, correlations.
  • Optimization Constraints: Budget, risk tolerance, liquidity.
  • MPT Limitations: Assumes normal returns, constant correlations.

NISM 21B Portfolio Managers

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