📊 NISM Series XVChapter 13 of 15⚖ 5 marks weightageCase-Based ✓
Ch.13: Qualities of a Good Research Report
Practice questions for NISM-Series-XV: Research Analyst Certification Examination
(mandated by SEBI under the Research Analysts Regulations, 2014).
Chapter 13 carries 5 out of 100 marks
in the final examination. The exam has 80 MCQs + 5 case-based sets, 120-minute duration,
60% passing score, and −0.25 negative marking per wrong answer.
25
MCQ
1
Case Sets
29
Total Qs
5
Exam Marks
60%
Pass Score
−0.25
Neg. Marking
What You Will Learn in This Chapter
Know the qualities and structure of a good research report
Understand disclosure requirements and conflict-of-interest norms
Apply a checklist-based approach to investment research
Key Terms:research reportinvestment thesisdisclosureconflict of interestprice targetrecommendation
Multiple Choice Questions (25)
Q1MCQEasyPurpose of Research Report
What is a primary purpose of a research report, as described in the text?
ATo provide legal advice on investments.
✓To present an investment idea.
CTo act as an offer document for new securities.
DTo summarize general market trends.
💡 The text states: 'Research report is a multipurpose document and does the following: Presents an investment idea - Provides market perspective - Detailed company analysis.'
Q2MCQHardRating Conventions
Based on the example provided in the text for rating conventions, a 'Hold' recommendation typically indicates an expectation that the stock's return over the next 12-month period will be within which range?
AMore than 10%
BLess than -10%
✓Between -10% and 10%
DExactly 0%
💡 The text states: 'for example, a ‘buy’ may indicate an expectation that the stock will deliver more than 10% returns over the next 12-month period, ‘hold’ may indicate that the stock’s return is expected to range between -10% and 10% over the next 12-month period and a ‘sell’ recommendation may indicate an expected return of less than -10% over the period.'
Q3MCQMediumResearch Report Sections
Which of the following sections of a research report is considered 'view-based' and typically requires communication with management and personal understanding?
AShareholding pattern
BKey financial indicators
✓Industry Overview
DPeer group analysis
💡 The text categorizes 'Company Business, Key Strengths, Key concerns, Industry Overview' as View-based sections, with the source of information including 'Communication with management, Personal Understanding of the business and industry'. Shareholding pattern, Key financial indicators, and Peer group analysis are listed as 'Fact-based sections'.
Q4MCQEasyQualities of a Good Research Report
Which of the following is explicitly listed as a quality of a good research report?
AComplexity of analysis
✓Clarity of Idea
CStandardized reports for all readers
DExtensive use of technical jargon
💡 The text lists 'Clarity of Idea' as one of the ground rules to follow for making a good report.
Q5MCQEasyReport Presentation
What is suggested for presenting data in research reports to make it easier to understand than written numbers?
AUse of complex financial models.
BExtensive narrative descriptions.
✓Data visualization software and visual charts.
DIncluding raw financial statements.
💡 The text states: 'It is also suggested to make use of data visualization software’s and prepare visual charts to present the data. Visual data is easier to understand than written numbers.'
Q6MCQMediumReport Sections
Which of the following is explicitly categorized as a 'view-based' section in a research report, according to the text?
AShareholding pattern
BKey financial indicators
✓Company Business
DPeer group analysis
💡 The text lists 'Company Business, Key Strengths, Key concerns, Industry Overview' as 'View-based section in research report'. The other options are listed as 'Fact-based sections'.
Q7MCQMediumReport Sections and Sources
Which of the following sections of a research report is classified as 'view-based' according to the text, with its source of information being communication with management and personal understanding?
AShareholding pattern
BCompany fundamentals
✓Key Strengths
DKey financial indicators
💡 The text lists 'Company Business, Key Strengths, Key concerns, Industry Overview' under 'View-based section in research report' with sources like communication with management and personal understanding.
Q8MCQEasyWriting Research Reports
According to the text, what are the three important steps involved in compiling research reports?
AAnalyzing, Presenting, Concluding
✓Planning, Drafting, Editing
CResearching, Writing, Publishing
DCollecting, Interpreting, Recommending
💡 The text explicitly states: 'Like any other writing projects, compiling research reports also have three important steps - Planning, Drafting and Editing.'
Q9MCQEasyRating Conventions
Which of the following is a common recommendation convention used by research analysts when rating stocks, as mentioned in the text?
AApprove
✓Hold
CMonitor
DEvaluate
💡 The text lists 'buy', 'overweight', 'hold', 'underweight' and 'sell' as prevalent recommendations.
Q10MCQEasyMultipurpose Document
A research report is described as a multipurpose document that performs all of the following functions EXCEPT:
APresents an investment idea
BProvides market perspective
CDetailed company analysis
✓Offers personal financial planning advice
💡 The text explicitly lists 'Presents an investment idea', 'Provides market perspective', and 'Detailed company analysis' as functions of a research report. Personal financial planning advice is not mentioned.
Q11MCQHardRating Conventions
In the context of stock rating conventions, what does an 'underweight' rating typically indicate?
AAn expectation that the stock will deliver more than 10% returns.
BPerformance in line with the market.
CAn expectation that the stock or sector will perform better than the market.
✓A relatively poor performance compared to the market.
💡 The text defines 'underweight' as indicating 'a relatively poor performance' of a stock or sector compared to the market.
Q12MCQEasyQualities of Research Report
According to the text, what are the three important steps involved in compiling research reports?
AAnalysis, Interpretation, Presentation
✓Planning, Drafting, Editing
CResearch, Writing, Publishing
DData Collection, Report Generation, Review
💡 The text explicitly states: 'Like any other writing projects, compiling research reports also have three important steps - Planning, Drafting and Editing.'
Q13MCQHardExcluded Communications
According to the text, which of the following communications is *not* included in the definition of a 'research report'?
ADetailed company analysis.
✓Discussions on broad-based indices.
CPresentation of an investment idea.
DProviding market perspective.
💡 The text explicitly states: 'Research report” does not include the following communications... ii. discussions on the broad-based indices;'. Options A, C, and D are listed as purposes of a research report.
Q14MCQEasyExclusions from Research Report
According to the SEBI regulations mentioned in the text, which of the following communications is specifically excluded from being termed a 'research report'?
ADetailed company analysis
✓Comments on general trends in the securities market
CPresenting an investment idea
DProviding market perspective
💡 The text explicitly states that 'comments on general trends in the securities market' are among the communications excluded from being a 'research report'.
Q15MCQMediumAnalyst Differentiation
How do research analysts primarily differentiate themselves and 'stand out and be the best' if they all have access to similar information?
ABy having exclusive access to management interviews.
✓By presenting their views, conclusions, and recommendations effectively.
CBy using advanced proprietary analytical software.
DBy providing only quantitative analysis.
💡 The text states: 'Research analysts, make a difference by the way in which they present their views, conclusions and recommendations. The communication aspect of an analyst’s job is as important as analysis, of which writing research report is one.'
Q16MCQMediumQuantitative Parameters
In the sample checklist for investment research, which of the following is considered a 'Quantitative Parameter'?
AQuality of management
BDemand – Supply gap in the industry
✓Whether business has stable and growing profitability (NPM > 10%)
DDownside / Risks in the business
💡 The text lists 'Whether business has stable and growing profitability (NPM > 10% and growth in EPS continuously over last 5 years)' under 'Quantitative Parameters'.
Q17MCQHardChecklist Approach
According to Dr. Atul Gawande in 'The Checklist Manifesto', which type of error can be largely avoided by following a checklist approach?
AErrors of ignorance (mistakes made out of ignorance)
✓Errors of ineptitude (mistakes made because of incorrect use of knowledge)
CErrors caused by market volatility
DErrors arising from lack of access to information
💡 The text states: 'He argues that errors of second type [errors of ineptitude] can be avoided to a large extent by following a checklist approach'.
Q18MCQMediumWriting Process
What are the three important steps involved in compiling research reports, similar to other writing projects?
AAnalyzing, Hypothesizing, Concluding
✓Planning, Drafting, Editing
CResearching, Synthesizing, Presenting
DCollecting, Interpreting, Disseminating
💡 The text states: 'Like any other writing projects, compiling research reports also have three important steps - Planning, Drafting and Editing.'
Q19MCQMediumReasons for Report Failure
Which of the following is listed as a reason for the failure of a research report?
AUse of data visualization software
BClear narrative structure
✓Inconsistent views
DSimplicity of language
💡 The text lists 'Inconsistent views' as one of the reasons for the failure of a research report under 'Things to watch-out'.
Q20MCQMediumReport Failure Reasons
Which of the following is listed as a reason for the failure of a research report?
AClear narrative structure.
BCustomized reports for reader type.
✓Unnecessary details.
DSimplicity of delivery.
💡 Under 'Things to watch-out', the text lists 'Unnecessary details' as a reason for the failure of a research report. The other options are qualities of a good report.
Q21MCQHardChecklist Approach
In 'The Checklist Manifesto,' Dr. Atul Gawande distinguishes between two types of errors. Which type of error, according to the text, can be largely avoided by following a checklist approach?
AErrors of ignorance.
✓Errors of ineptitude.
CErrors of omission.
DErrors of commission.
💡 The text explains: 'Dr. Atul Gawande makes a distinction between errors of ignorance (mistakes made out of ignorance), and errors of ineptitude (mistakes made because of incorrect use of knowledge). He argues that errors of second type [errors of ineptitude] can be avoided to a large extent by following a checklist approach.'
Q22MCQMediumRating Conventions
An 'Underweight' rating for a stock or sector, as defined in the text, indicates which of the following expectations?
AThe stock/sector will perform better than the market.
BThe stock/sector will perform in line with the market.
CThe stock/sector will deliver positive returns above 10%.
✓The stock/sector will have a relatively poor performance compared to the market.
💡 The text states: 'An ‘overweight’ rating indicates the expectation that the stock or sector will perform better than the market, while ‘underweight’ indicates a relatively poor performance and ‘equal weight’ indicates performance in line with the market.'
Q23MCQMediumChecklist Approach
One of the obvious advantages of a checklist approach for analysts, as stated in the text, is that it:
AEnsures higher market returns consistently.
✓Helps avoid lazy mistakes or short-cuts.
CReplaces the need for in-depth financial analysis.
DEliminates the possibility of any investment risks.
💡 The text lists 'Checklist helps avoid lazy mistakes or short-cuts' as an obvious advantage of the checklist approach.
Q24MCQEasyQualities of a Good Research Report
Which of the following is NOT listed as a purpose of a research report?
APresents an investment idea
BProvides market perspective
CDetails company analysis
✓Guarantees investment returns
💡 The text states that a research report 'Presents an investment idea - Provides market perspective - Detailed company analysis.' It does not mention guaranteeing investment returns.
Q25MCQEasyAnalyst Differentiation
Given that all research analysts have access to similar information, how do they primarily make a difference and stand out as per the text?
ABy obtaining exclusive, secret information not available to others.
BBy making the most aggressive predictions about stock performance.
✓By the way in which they present their views, conclusions and recommendations.
DBy relying solely on quantitative data and avoiding qualitative analysis.
💡 The text states: 'Research analysts, make a difference by the way in which they present their views, conclusions and recommendations.'
Case-Based Questions (1 sets)
Case 1Case-BasedQualities of a Good Research Report
Ms. Ananya Sharma, a seasoned research analyst at 'Apex Securities', is tasked with preparing a comprehensive research report on 'TechInnovate Solutions Ltd.', a fast-growing mid-cap IT services company. She has meticulously collected all publicly available information, including the company's latest annual reports, quarterly filings, and transcripts of management calls. Ms. Sharma knows that merely presenting facts won't differentiate her report, as most analysts have access to similar data. Her challenge is to present her insights in a manner that is clear, compelling, and stands out to institutional clients who receive numerous reports daily. She is particularly focused on articulating the company's competitive advantages and future growth prospects, while also clearly outlining potential risks. Additionally, she needs to decide on an appropriate rating convention for the stock and ensure her final report is free of errors, adheres to internal guidelines, and is delivered within a tight deadline, especially with the upcoming earnings season. She plans to use visual aids to make complex data more digestible.
Medium Sub-question 1
To make her report on 'TechInnovate Solutions Ltd.' stand out amidst numerous other reports, what primary aspect should Ms. Sharma focus on, beyond merely presenting factual data?
✓The creativity in structuring the report and communicating the message.
BIncluding more historical financial data than her peers.
CUsing highly technical jargon to impress sophisticated clients.
DDelaying the report's release to gather more exclusive information.
💡 The chapter emphasizes that while all analysts have access to similar information, differentiation comes from the way views, conclusions, and recommendations are presented, and the creativity in structuring the report and communicating the message.
Easy Sub-question 2
Ms. Sharma is outlining the 'Key Strengths' and 'Key Concerns' of 'TechInnovate Solutions Ltd.' within her report. Based on the NISM guidelines, these sections are primarily considered:
AFact-based sections, derived from annual reports.
✓View-based sections, requiring personal understanding and management communication.
CStatistical summaries, excluded from the definition of a research report.
DObjective parameters, directly copied from company filings.
💡 Key Strengths and Key Concerns are considered view-based sections, relying on the analyst's personal understanding of the business and industry, often supplemented by communication with management, rather than purely fact-based data.
Hard Sub-question 3
To ensure consistency and avoid errors of ineptitude in her analysis, especially given the high workload during earnings season, Ms. Sharma decides to implement a checklist approach for her research process. Which of the following is NOT a primary advantage of using such a checklist, as per the NISM chapter?
AIt helps in avoiding lazy mistakes or shortcuts during the research.
BIt ensures the analyst consistently follows intended disciplined procedures.
✓It guarantees the generation of unique, proprietary insights not available to others.
DIt provides a decision-making trail that can be reviewed and refined over time.
💡 While checklists promote discipline and methodical work, leading to better decision-making, they do not guarantee the generation of unique, proprietary insights. Unique insights stem from deep analysis and understanding, not merely process adherence.
Medium Sub-question 4
Ms. Sharma is concluding her report on 'TechInnovate Solutions Ltd.' and decides to use a relative rating convention to reflect the stock's expected performance compared to its peers and the broader IT sector. Which of the following rating terms would be most appropriate for this purpose?
ABuy / Hold / Sell
BAccumulate / Reduce
✓Overweight / Equal Weight / Underweight
DLong / Short
💡 The terms 'Overweight', 'Equal Weight', and 'Underweight' are specifically used to describe a stock's or sector's performance relative to the market or peer group, which aligns with Ms. Sharma's objective of using a relative rating convention. 'Buy/Hold/Sell' typically refer to absolute return expectations.
About this content: These practice questions are based on the
NISM-Series-XV: Research Analyst Certification Examination Workbook (February 2026)
published by the National Institute of Securities Markets (NISM), Mumbai.
NISM is a SEBI-established institution. Questions cover Qualities of a Good Research Report with verified answers and explanations.
BullWiser is an independent exam preparation platform — not affiliated with NISM or SEBI.
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