n NISM Certifications
XV NISM Series XV
Medium

A government announces significant infrastructure investments. Based on this news, a research analyst recommends investing in infrastructure companies. Which analytical approach does this represent?

Practice question from NISM XV Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Top-Down Approach

    Correct answer

  2. B

    Bottom-Up Approach

  3. C

    Independent Research

  4. D

    Technical Approach

Why this is the answer

Top-Down Analysis begins with macroeconomic or policy factors, moves to industry analysis, and then selects specific companies. Bottom-Up focuses on company fundamentals, while Technical Analysis examines price patterns.

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