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

Which statement about the content of a good research report prepared by a research analyst is most appropriate?

A good research report states facts and opinions clearly, distinguishes between them, and explains the basis and assumptions behind the recommendation. It must not guarantee returns or present opinion as fact, since transparency and fairness to the reader are core duties of a research analyst.

  1. AIt should state facts and opinions clearly, distinguish between them, and explain the basis of the recommendationCorrect
  2. BIt should avoid stating the assumptions to keep the report short
  3. CIt should guarantee a minimum return on the recommended stock
  4. DIt should present opinions as facts so that clients act quickly

Explanation

A sound report separates facts from opinions and explains the reasoning and assumptions behind a recommendation. Guaranteeing returns is prohibited and misleading, and hiding assumptions or presenting opinion as fact reduces transparency and fairness.

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