NISM Certifications · NISM-Series-XV: Research Analyst · Fundamentals of Research
Which of the following best describes a hypothesis in a research project by an analyst?
A hypothesis is a testable tentative statement about a relationship or outcome. The analyst gathers data to accept or reject it. It is neither a final recommendation nor a summary of financials or a holdings disclosure.
- AA final recommendation to buy a stock
- BA testable tentative statement about a relationship or outcomeCorrect
- CA summary of a company's published financials
- DA disclosure of the analyst's holdings
Explanation
A hypothesis is a tentative, testable proposition, such as that a firm's margins will expand if input costs fall. Research then tests it against data to accept or reject it.
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