CFA Practice Question

There are 191 practice questions for this study session.

CFA Practice Question

Which statement is false?
A. Industries with high barriers to entry can still be very competitive.
B. Many cyclical industries produce durable, commodity-like goods such as raw materials, cars, chemicals, construction, paper, steel, and heavy equipment.
C. Company analysis takes place before the analyst has gained an understanding of the company's external environment.
Explanation: A is true: high barriers to entry don't automatically lead to good pricing power.

B is true: given the durable nature of the goods, such purchases often get postponed in poor economic conditions, but sell especially well in good economic conditions.

C is false; it should take place AFTER ...

User Contributed Comments 0

You need to log in first to add your comment.