Preview Questions Portfolio Manager | Role Specific Skill

Question 1: Which of the following indicators is most predictive of an upcoming economic recession?

Which action should you take?

Choose only one option

Inflation rate

Yield curve inversion

Consumer confidence index

Unemployment rate

Question 2: How does the use of derivatives influence asset allocation in BFSI portfolios?

Which action should you take?

Choose only one option

Derivatives can be used to hedge risk and manage portfolio exposure

Derivatives should be avoided entirely due to high risk

Derivatives should be used to increase portfolio returns without concern for risk

Derivatives are used only for speculative purposes without risk management

Question 3: What is the role of moving averages in market trend analysis?

Which action should you take?

Choose only one option

Predict macroeconomic trends

Identify short-term volatility

Assess bond duration

Smooth out price fluctuations

Question 4: How can a portfolio manager assess the impact of rising commodity prices, such as oil, on the BFSI portfolio and adjust accordingly?

Which action should you take?

Choose only one option

Focus on maintaining current portfolio allocations

Ignore commodity prices, as they don't affect financial markets

Assess inflationary pressure and adjust equity and fixed income exposure

Increase exposure to commodity stocks and related sectors

Question 5: How do you assess the sustainability of a company's long-term performance in the BFSI sector using investment analysis?

Which action should you take?

Choose only one option

By examining the company's business model, management, and market position

By tracking stock price movements

By using technical indicators alone

By focusing solely on short-term earnings reports

Question 6: How can a portfolio manager ensure that a client's portfolio remains aligned with their changing life stages?

Which action should you take?

Choose only one option

Only review the portfolio when significant life changes occur

Focus only on optimizing returns, regardless of life stage changes

Keep the portfolio unchanged unless the client requests modifications

Regularly review the portfolio and adjust based on the client's evolving needs