NISM Certifications · NISM-Series-XV: Research Analyst · Qualities of a Good Research Report
Which feature most clearly makes a research report's conclusion well supported rather than merely persuasive?
A conclusion is well supported when there is a clear logical chain from the data and stated assumptions to the final recommendation. Strong language, length or one-sided sources may persuade readers but do not provide analytical support.
- AFrequent use of strong adjectives about the company
- BA logical link between the data, the assumptions stated and the final recommendationCorrect
- CA very long executive summary
- DQuoting only the company's promoters
Explanation
A well supported conclusion flows logically from analysed data and explicit assumptions to the recommendation. Adjectives, length and one-sided quotes add persuasion but not support.
Did you get it right without looking?
One question tells you little. A timed set on Qualities of a Good Research Report shows your real accuracy, how long you take and where you lose marks.
More Qualities of a Good Research Report questions
- An analyst values a company using a target P/E of 20 on estimated EPS of Rs 45 for next year. The current market price is Rs 828. What is th…
- A report on a listed company recommends Buy. The analyst's relative holds more than 1% of the company's shares, but the report is silent abo…
- A research analyst's report states a target price of Rs 500 for a stock but does not mention the valuation method, the key assumptions or th…
- Under the SEBI (Research Analysts) Regulations, 2014, which of the following should a research report clearly distinguish to be considered o…
- A report on Sundaram Auto Parts states: current price ₹240, target price ₹300, and a bear-case value of ₹180. The report recommends 'Buy' an…
- A research analyst's report on Sundaram Textiles uses a target price based on a P/E multiple. Which practice most improves the transparency …