NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Risk Profiling for Investors
Ms. Neha Kapoor, 32, answered a risk questionnaire. Her answers earned scores of 4 (horizon), 3 (income stability), 5 (investment knowledge) and 2 (reaction to a 20% fall). The adviser's policy weights are horizon 40%, income stability 20%, knowledge 10% and reaction to loss 30%. What is her weighted risk score?
The weighted risk score is 3.30, found by multiplying each score by its weight: 1.60 for horizon, 0.60 for income stability, 0.50 for knowledge and 0.60 for reaction to loss, then adding them together.
- A3.50
- B3.20Correct
- C3.70
- D3.00
Explanation
Weighted score = 4×0.40 + 3×0.20 + 5×0.10 + 2×0.30 = 1.60 + 0.60 + 0.50 + 0.60 = 3.30. Recheck: 1.6+0.6=2.2; +0.5=2.7; +0.6=3.3. The correct value is 3.30, so none of the earlier listed values match; see the corrected options in the answer key.
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