CFA Level I · CFA Level I Exam · Equity Analyst Research Reports
Which element of an equity research report most appropriately presents the analyst's conclusion on the security, such as a rating and the time horizon over which it is expected to apply?
The recommendation is the element that presents the analyst's conclusion, such as a buy, hold or sell rating along with the expected time horizon. Industry overviews give context and historical tables give past data, but neither states the analyst's actionable view on the security.
- AThe recommendationCorrect
- BThe industry overview
- CThe historical financial tables
Explanation
The recommendation states the rating (for example buy, hold, sell), usually with a price target and horizon. The industry overview describes competitive context, and historical tables present past data; neither delivers the conclusion.
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