n NISM Certifications
XV NISM Series XV
Medium

Ms. Swati, a research analyst, estimates the fair value of a listed stock at ₹570, while its current market price is ₹475. How should this be appropriately stated in a research report?

Practice question from NISM XV Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Assign an ‘Overweight’ rating with a target price of ₹570

    Correct answer

  2. B

    Assign a Buy rating and mention a 20% return

  3. C

    Firmly recommend investors to buy the stock

  4. D

    All of the above

Why this is the answer

Research reports must remain objective and use standardized ratings with target prices. Statements guaranteeing returns or issuing direct investment advice are not permitted.

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