The top-down analysis uses a(n) inductive approach, and the bottom-up analysis uses a(n) deductive approach.
Top-down analysis generally refers to using a wide range of factors as the basis for decision-making. A top-down approach aims to identify the big picture and all its components. These components are usually the driving force behind the end goal. Top-down is commonly associated with the word "macro" or macroeconomics.
The top-down analysis begins with an analysis of macroeconomic indicators and performs a more specific sector analysis. We then dive into the fundamental analysis of specific companies. Top-down investment is an investment analysis approach that looks at macro factors of the economy such as GDP, employment, taxation, and interest rates, and then examines micro factors such as specific industries and companies.
Learn more about the inductive approach in top-down analysis here: https://brainly.com/question/21938916
#SPJ4
