CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Which of the following is NOT one of the major areas where financial ratios are used?
A. Systematic risk
B. Bankruptcy
C. Capital budgeting
Explanation: Ratios are used to determine systematic risk, evaluate stocks, forecast bankruptcy, and create bond ratings.

User Contributed Comments 3

User Comment
Fliper333 What about using P/E ratio for determining required cost of equity?
nike the textbook list the usages the same as the answer here. They don't include capital budgeting.
Tommy Thanks nike.
You need to log in first to add your comment.