NISM Certifications · NISM-Series-XV: Research Analyst · Qualities of a Good Research Report
In a research report, which of the following best reflects the practice of keeping facts separate from opinions?
A good research report clearly labels historical data with sources and identifies forecasts and views as the analyst's own estimates. This lets readers distinguish verifiable facts from opinion, which supports transparency, credibility and informed decision-making by investors.
- APresenting the analyst's expectation of next year's profit as a reported fact
- BClearly labelling historical figures with their source and marking forecasts and views as the analyst's own estimatesCorrect
- COmitting the source of data so the report reads smoothly
- DBlending management claims with the analyst's conclusions in a single paragraph
Explanation
A good report lets the reader tell verified data from judgement. Sourcing historical figures and flagging forecasts as estimates achieves this. The other options blur facts and opinions or hide the source, which weakens credibility.
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