n NISM Certifications
XV NISM Series XV
Medium

A research analyst collects data indicating that the price of an equity share is likely to decline. However, the analyst personally feels that the price might increase. What is the appropriate recommendation to clients in this scenario?

Practice question from NISM XV Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Intuitions usually come true, so the analyst should recommend a buy or hold rating

  2. B

    The analyst should not recommend anything as they are unsure

  3. C

    The analyst can give two recommendations: one based on intuition and another based on data

  4. The analyst should recommend a sell rating as the data and indicators suggest a decline

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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