Module 5: Introduction to Industry and Company Analysis Exam Review Questions & Answers 2025

Module 5: Introduction to Industry and Company Analysis Exam Review Questions & Answers 2025 1. Module 5 L1: Introduction to Industry and Company Analysis (Quick tip, this is mostly Industry Analysis and little Company Analysis): 2. LOS Explain uses of industry analysis and the relation of industry analysis to company analysis.: 3. Intro: "Industry analysis" has the following uses:: + To understand a company's busi ness and business environment (used in fundamental analysis, stock selection, and valuation as it provides insights into a company's growth opportunities, competitive dynamics, business risks, and credit risk.) + To identify active equity investment opportunities (analysis of industry fundamentals helps an analyst in forecasting the industry's growth and profitability.) + To attribute portfolio performance (Portfolio managers are evaluated on the relative performance of their sector and industry allocations.) 4. Add-on from CFA questions: Sector rotation strategy: A sector rotation strategy is conducted by investors wishing to time investment in industries through an analysis of fundamentals and/or business-cycle conditions. A sector rotation strategy involves investing in a sector by: making regular investments in it. CONTINUES...