- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 40. Introduction to Industry and Company Analysis
- Subject 2. Approaches to Identifying Similar Companies
CFA Practice Question
Which of the following is (are) true about a cyclical industry?
II. Its earnings track and amplify the business cycle.
III. It achieves an above-average rate of return even if the economy is in a recession.
I. It produces discretionary products, the consumption of which is dependent on economic optimism.
II. Its earnings track and amplify the business cycle.
III. It achieves an above-average rate of return even if the economy is in a recession.
A. I and II
B. II and III
C. I, II and III
User Contributed Comments 2
| User | Comment |
|---|---|
| Hishy | III is a growth firm or growth industry. |
| dipu617 | Thanks Hishy. |