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Basic Question 2 of 6

Consider the following industries. Which industry will tend to exhibit the most volatility in profits and growth?

A. The automotive industry
B. Grocery stores
C. The footwear industry

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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

explain how the phase of the business cycle affects short-term and long-term earnings growth expectations;

explain the relationship between the consumption hedging properties of equity and the equity risk premium;

describe cyclical effects on valuation multiples;

CFA® 2025 Level II Curriculum, Volume 6, Module 37.