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NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Research Analyst Profession

Which of the following is a typical skill expected of a research analyst when interpreting company financials?

A research analyst is expected to analyse financial statements and forecast earnings objectively. Guaranteeing returns, executing client trades in demat accounts, or clearing announcements with promoters are not analyst functions and would be improper or belong to other intermediaries.

  1. AAbility to analyse financial statements and forecast earnings objectivelyCorrect
  2. BGuaranteeing a minimum return to clients on recommended stocks
  3. CExecuting trades for clients in their demat accounts
  4. DPre-clearing company announcements with the promoters

Explanation

Analysts need financial statement analysis and forecasting skills with objectivity. Guaranteeing returns is prohibited, executing trades is a broking function, and pre-clearing announcements with promoters would compromise independence.

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