NISM Certifications · NISM-Series-XV: Research Analyst · Qualities of a Good Research Report
Which of the following is a feature of a well-structured research report on a company?
A well-structured report states the key risks to its recommendation, such as regulatory, competitive or execution risks. Presenting risks gives a balanced, fair view and lets readers assess how the thesis could fail, unlike one-sided or opaque reports that hide valuation methods or use unexplained jargon.
- AIt presents only the positive aspects of the company to encourage investment
- BIt states the key risks to the recommendation, such as regulatory, competitive or execution risksCorrect
- CIt avoids disclosing the valuation method to protect the analyst's proprietary view
- DIt uses technical jargon extensively without explanation
Explanation
A balanced report covers risks that could make the recommendation wrong, which helps readers weigh the decision. One-sided, opaque or jargon-heavy reports reduce clarity and fairness, which are core qualities of good research.
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