- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 7. Company Analysis: Forecasting
- Subject 1. Forecast Objects, Principles, and Approaches
CFA Practice Question
Which forecast approach is the most appropriate for companies in well-established industries with many public-traded peers?
B. Historical base rates and convergence
C. Management guidance
D. Analyst's discretionary forecast
A. Historical results
B. Historical base rates and convergence
C. Management guidance
D. Analyst's discretionary forecast
Correct Answer: B
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