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NISM Certifications · NISM-Series-XV: Research Analyst · Qualities of a Good Research Report

Which of the following best describes a research report that is 'balanced' in the sense expected of a good research report?

A balanced research report presents both supporting factors and risks, so that the reader can see the full picture and judge the conclusion. Showing only positives, hiding the recommendation, or copying management guidance makes a report biased or incomplete, not balanced.

  1. AIt presents only the positive factors so that investors are encouraged to buy
  2. BIt presents both supporting factors and risks, so the conclusion is not one-sidedCorrect
  3. CIt avoids stating any recommendation to remain neutral
  4. DIt relies only on management guidance without independent assessment

Explanation

A balanced report discusses the favourable factors as well as the risks and limitations behind its view. Showing only positives makes it one-sided, and avoiding a view or relying only on management guidance does not make a report balanced.

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