- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 11. Financial Analysis Techniques
- Subject 1. Analytical Tools and Techniques
CFA Practice Question
The need to develop a range of reasonable values for a ratio is eliminated by ______.
II. DuPont analysis
III. time-series analysis
I. common-size analysis
II. DuPont analysis
III. time-series analysis
Correct Answer: None
None of these methods eliminates the need to examine industry ratios and develop reasonable ranges for ratios.
User Contributed Comments 2
| User | Comment |
|---|---|
| viannie | ratio is meaningless on its on, needs to compare with benchmark |
| warnggg | A range of reasonable values is established via comparing to industry benchmarks... |