Asked by Thembani VUTUZA on Jun 15, 2024
Verified
Time-series analysis helps identify financial trends
A) across companies at a single point in time.
B) across business units at a single point in time.
C) over time for a single company or business unit.
D) among the companies that comprise an industry group.
Time-Series Analysis
A statistical technique that analyzes a sequence of data points, typically measured at successive times, to forecast future values.
Financial Trends
Refers to patterns or tendencies observed in financial markets or sectors over a certain period, which can indicate future movements or behaviors.
- Understand the theory and practical implementation of various financial analysis methods, including benchmark comparison, time-series analysis, and cross-sectional analysis.
Verified Answer
JB
Jimmy BoeroJun 20, 2024
Final Answer :
C
Explanation :
Time-series analysis involves examining data over time to identify trends, patterns, and cycles. Therefore, it is best suited to analyze financial trends over time for a single company or business unit. Options A, B, and D focus on analyzing financial data at a single point in time or across multiple companies, making them less relevant to time-series analysis.
Learning Objectives
- Understand the theory and practical implementation of various financial analysis methods, including benchmark comparison, time-series analysis, and cross-sectional analysis.
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