Which of the Following Statements Is Correct

question 26

Multiple Choice

Which of the following statements is correct?

• A)Peer group analysis is easier when a firm is a conglomerate rather than a single line of business.
• B)Australian listed companies can only be compared to other companies listed on the ASX.
• C)Peer group analysis is easier when firms have different fiscal years.
• D)GICS are useful in identifying companies for comparison purposes but some care must be taken.
• E)Peer-group analysis is simplified when firms use different depreciation methods.

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Definitions:

Abnormal Returns

Returns on a security or portfolio that differ significantly from the expected rate of return, often resulting from specific events.

Macro Forecasting

Macro Forecasting involves projecting the overall economic conditions and trends, such as inflation rates, interest rates, and GDP growth, to inform investment decisions.

Investments

The allocation of resources, such as time, money, or effort, in the expectation of generating an income or profit.

Market Value

The current price at which an asset or company could be bought or sold in the market.