CFA Level I sample question

CFA Level I Company Analysis: Forecasting question

Equity Investments / Company Analysis: Forecasting

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Company Analysis: Forecasting sample question

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Equity Investments

Company Analysis: Forecasting

An analyst forecasts that a company's operating margin will move gradually from its current 18% toward the 12% industry average over five years, reasoning that competition typically erodes above-average profitability over time. This forecasting approach is best described as using:

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