CFA Level I · CFA Level I Exam · Industry and Competitive Analysis
A rapidly aging population in a country is most likely to benefit which industry's long-term demand?
Health care services would most likely benefit. An aging population is a demographic external factor that raises demand for medical care, while products aimed at children or students depend on younger groups whose share of the population is falling.
- AHealth care servicesCorrect
- BChildren's apparel
- CStudent housing
Explanation
Demographic change is an external factor. An older population uses more medical care, whereas children's apparel and student housing depend on younger age groups that shrink in share.
Did you get it right without looking?
One question tells you little. A timed set on Industry and Competitive Analysis shows your real accuracy, how long you take and where you lose marks.
More Industry and Competitive Analysis questions
- A industry has four dominant firms that each watch rivals' prices closely, and a price cut by one is quickly matched by the others. The most…
- An analyst values Company Z using a peer group median P/E of 14.0. One peer is a conglomerate with 55% of revenue from an unrelated shipping…
- A analyst studies a company that sells a standard commodity-like product in a market where buyers compare prices easily. The company's strat…
- Firm X has sales of 800 million and a cost of goods sold of 520 million. It is a cost leader and expects a price war to cut its average sell…
- Compared with a peer group built from a commercial industry classification, a peer group built using statistical (correlation-based) methods…
- An analyst studies a premium watchmaker that charges prices well above the industry average. Customers value its brand heritage and craftsma…