n NISM Certifications
XV NISM Series XV
Medium

What is a key limitation of relying solely on annual reports for research?

Practice question from NISM XV Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    They present a biased view

  2. Information may become outdated

    Correct answer

  3. C

    They do not cover governance

  4. D

    They lack qualitative data

Why this is the answer

Annual reports are published once a year, so information can become obsolete over time, making them insufficient for timely investment decisions.

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