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Basic Question 4 of 5

What does "granularity" refer to in the context of bottom-up revenue modeling?

A. The simplicity of the model.
B. The use of industry averages.
C. The level of detail and specificity in the model.
D. The overall complexity of the revenue analysis.

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Edward Liu

Edward Liu

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.