- CFA Exams
- CFA Exam: Level I 2021
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 24. Financial Analysis Techniques
- Subject 1. Analysis Tools and Techniques
CFA Practice Question
The need to develop a range of reasonable values for a ratio is eliminated by ______.
II. DuPont analysis
III. time-series analysis
I. common-size analysis
II. DuPont analysis
III. time-series analysis
Correct Answer: None
None of these methods eliminates the need to examine industry ratios and develop reasonable ranges for ratios.
User Contributed Comments 2
| User | Comment |
|---|---|
| viannie | ratio is meaningless on its on, needs to compare with benchmark |
| warnggg | A range of reasonable values is established via comparing to industry benchmarks... |