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Basic Question 1 of 5
How are industry growth rates typically incorporated in a top-down revenue model?
A. Ignored, as they are considered irrelevant.
B. Used as the main driver of revenue projections.
C. Integrated along with other macroeconomic factors.
D. Applied only to specific product lines.
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Learning Outcome Statements
compare top-down, bottom-up, and hybrid approaches for developing inputs to equity valuation models;
compare "growth relative to GDP growth" and "market growth and market share" approaches to forecasting revenue;
CFA® 2025 Level I Curriculum, Volume 2, Module 17.