Question

Peer group analysis can be performed byA) management choosing a set of firms that are similar in size or sales, or who compete in the same market.B) using the average ratios of this peer group, which would then be used as the benchmark.C) identifying firms in the same industry that are grouped by size, sales, and product lines in order to establish benchmark ratios.D) Only a and b relate to peer group analysis.

Answer 1

Answer:

D) Only a and b relate to peer group analysis.

Explanation:

Peer group analysis allows investors to see how a certain fund performs over various periods compared to other funds within the same investment strategy. Based on this information both management choosing a set of firms that are similar in size or sales, or who compete in the same market as well as using the average ratios of this peer group, which would then be used as the benchmark, are related to the peer group analysis.

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