Skip to content

NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Research Analyst Profession

A research report on a listed company is more useful to its readers when the analyst clearly separates facts from opinions. Which statement reflects the sound professional practice?

Facts should be stated with their sources, and estimates or opinions should be clearly labelled as the analyst's own assumptions and judgement. This lets readers judge reliability and keeps the report objective, whereas presenting forecasts as certainties or hiding sources misleads users.

  1. AProjections and forecasts should be presented as certain facts to build reader confidence
  2. BOpinions should be mixed with facts so the report reads as a single narrative
  3. CFacts should be stated with their sources, while estimates and views should be identified as the analyst's own assumptions and judgementCorrect
  4. DSources need not be disclosed if the analyst is confident of the data

Explanation

Good practice requires that facts be sourced and that estimates and opinions be labelled as the analyst's judgement. Presenting forecasts as certain or hiding sources misleads readers and weakens objectivity.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Research Analyst Profession shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Research Analyst ProfessionFree diagnostic mock

More Introduction to Research Analyst Profession questions