- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 12. Introduction to Financial Statement Modeling
- Subject 5. The Forecast Horizon and Long-Term Forecasting
CFA Practice Question
Which of the following factors would most likely be used to evaluate the impact of new products on existing products' demand?
A. Cannibalization factor
B. Sensitivity analysis
C. Scenario analysis
Correct Answer: A
The cannibalization factor is used to evaluate the impact of a new product on the future demand for an existing product. It quantifies a new product's impact on an existing product's sales.
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