An analyst examines changes in a firm's various ratios over a three-year period-a so-called _____ analysis and performs a _____ analysis comparing a given firm's ratios with those of other firms for a specific period.
A)cross-section; time-series
B)time-series; cross-section
C)profitability; time-series
D)time-series; profitability
E)none of the above

Question

Quizplus · Accepted Answer

The first part of the statement refers to time-series analysis, as it examines changes in a firm's ratios over a three-year period. The second part refers to cross-section analysis, as it compares a given firm's ratios with those of other firms for a specific period. Therefore, the correct answer is option B, which matches these two types of analysis with their respective descriptions.

An Analyst Examines Changes in a Firm's Various Ratios Over