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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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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

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® 2024 Level II Curriculum, Volume 2, Module 17.