NISM Certifications · NISM-Series-XV: Research Analyst · Qualities of a Good Research Report
Which of the following best describes a key quality of a good research report with respect to its recommendation?
A good research report supports its recommendation with clearly stated assumptions and reasoning, so that readers can trace how the conclusion was reached and judge it for themselves. Concealing methods, relying on personal conviction or omitting risks undermines transparency and reliability.
- AThe recommendation should be supported by clearly stated assumptions and reasoningCorrect
- BThe recommendation should be stated without disclosing the valuation method used
- CThe recommendation should rely mainly on the analyst's personal conviction
- DThe recommendation should avoid mentioning risks to keep the message simple
Explanation
A good report links its rating to explicit assumptions, data and reasoning so readers can evaluate it. Hiding the method, relying on conviction alone or omitting risks makes the report less transparent and less useful.
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