Which of the Following Statements Regarding Documentation of Research Conclusions

question 13

Multiple Choice

Which of the following statements regarding documentation of research conclusions is false?

• A) A research memorandum is a permanent record of the research process.
• B) A researcher communicates his or her conclusions to the client in a letter containing information similar to that in the research memorandum.
• C) Technical references are generally inappropriate in a client letter.
• D) A research memorandum contains only research conclusions and not a detailed analysis of legal authorities supporting those conclusions.

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Definitions:

Efficient Market

A financial market theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the average market return.

Expected Return

The anticipated amount of profit or loss an investor can foresee from an investment, based on historical data or estimated calculations.

Required Return

The minimum expected return by investors for investing in a particular asset, taking into account the risk level of the investment.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, widely used in finance to assess the risk of a financial instrument.