CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

In comparing the relation of percentage change in company sales with GDP growth, your regression software provides the following output:

Assuming that GDP next year is expected to decline by 3.2%, what is your best estimate for next years percentage change in sales?
A. 2.58%
B. 4.96%
C. 8.02%
Explanation: %ΔSales = 5.3 + 0.85 (%ΔGDP) = 5.3 + 0.85 (-3.2%) = 2.58%.

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