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NISM Certifications · NISM-Series-XV: Research Analyst · Fundamentals of Research

Which statement best describes the difference between primary and secondary data used by a research analyst?

Primary data is gathered first-hand by the analyst, for example by interviewing management, while secondary data already exists in published sources such as annual reports. So management meetings give primary data and annual reports give secondary data. The type of data does not depend on being quantitative or qualitative.

  1. AMeeting a company's management to ask about capacity expansion yields primary data, while reading its annual report yields secondary dataCorrect
  2. BData from a company's annual report is primary data, while data from a management meeting is secondary data
  3. CBoth data types are secondary if they relate to a listed company
  4. DPrimary data is always quantitative and secondary data is always qualitative

Explanation

Primary data is collected first-hand by the analyst, such as through management interviews or channel checks. Secondary data already exists, such as annual reports or published statistics. The option reversing these is wrong, and neither data type is limited to quantitative or qualitative form.

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