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

Which of the following is the best description of a research report that has a 'balanced' presentation?

A balanced research report presents both positive factors and risks, so the reader can form an informed view. It does not hide negatives or promote only strengths, and it still contains independent analysis and may carry a clear recommendation supported by reasoning.

  1. AIt discusses only the strengths of the company to encourage investors
  2. BIt presents both positive factors and risks so the reader can form an informed viewCorrect
  3. CIt avoids stating any recommendation or target price
  4. DIt repeats the company's press releases without analysis

Explanation

A balanced report gives a fair view by covering favourable factors as well as risks and negatives. Showing only strengths makes it one-sided, and copying press releases adds no independent analysis. A balanced report can still carry a recommendation.

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