Skip to content

NISM Certifications · NISM-Series-XV: Research Analyst · Fundamentals of Research

A research analyst compares the P/E ratio of an Indian cement company with the average P/E of other listed cement companies. This is an example of which research technique?

This is cross-sectional analysis, because the company is compared with its industry peers at a single point in time. Time-series analysis would instead compare the same company's ratio over several periods, which is not what the analyst is doing.

  1. ACross-sectional analysisCorrect
  2. BTime-series analysis
  3. CTrend extrapolation
  4. DSensitivity analysis

Explanation

Cross-sectional analysis compares a company with its peers at one point in time. Time-series analysis would compare the same company's P/E across different years. Sensitivity analysis varies inputs to a model, which is not done here.

Did you get it right without looking?

One question tells you little. A timed set on Fundamentals of Research shows your real accuracy, how long you take and where you lose marks.

More Fundamentals of Research questions