Investment Analysts Use a Number of Approaches in the Analysis

Multiple Choice

Investment analysts use a number of approaches in the analysis of fundamentals that may affect share prices.Which of the following statements in relation to the top-down approach to share price analysis is MOST correct? The top-down approach:

A) identifies specific firms to include in an investment portfolio.
B) provides a measure of the level of unsystematic risk in the market.
C) compares the performance of firms through financial ratio analysis.
D) identifies future economic factors that may impact on industry sector performance.