Which of the Following Is Not a Reason Analyst Recommendations

question 83

Multiple Choice

Which of the following is not a reason analyst recommendations are often more optimistic than warranted by an objective analysis of the facts?

• A) Many analysts fail to grasp the gravity of the problems facing a company.
• B) Sell recommendations generate lower commissions than buy recommendations.
• C) The firms for which analysts work may have lucrative investment banking relationships with the firm.
• D) Analysts are often pressured by their superiors to overlook negative information.

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Definitions:

Health Benefits

Positive effects on physical, mental, or social well-being obtained from a specific action, habit, or product.

Type I Error

The error made in statistical hypothesis testing when a true null hypothesis is incorrectly rejected, indicating a false positive finding.

Power Of The Test

A statistical measure indicating the likelihood of correctly rejecting a false null hypothesis.

Null Hypothesis

A statement predicting that no difference or effect will be observed in the study, serving as a default position until evidence suggests otherwise.