CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

A benchmark comparison is related to time-series analysis rather than cross-sectional analysis. True or False?
Correct Answer: False

Cross-sectional analysis always involves a comparison at a certain point in time. For example, one company's profitability may be evaluated against another company's profitability. A benchmark comparison measures a company's performance at a point in time against a standard.

User Contributed Comments 1

User Comment
studyprep You freeze the time in Cross-sectional analysis. So you can not compare the same company financial with itself. You need at least two different companies' financials (which is a benchmarking), while keeping the time freezed up.
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