When Using Ratio Data for Comparison to Other Companies,analyst Should

question 99

Multiple Choice

When using ratio data for comparison to other companies,analyst should:

• A)not assume that all companies in the industry are in direct competition.
• B)not interpret the data as a way of determining which companies will survive and outperform others.
• C)only use data from one time period.
• D)use industry averages,rather than individual companies,for the comparison.

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