NISM Certifications · NISM-Series-XV: Research Analyst · Industry Analysis
A sector's revenue is ₹80,000 crore and the top three firms have revenues of ₹28,000 crore, ₹20,000 crore and ₹12,000 crore. What is the three-firm concentration ratio (CR3)?
CR3 is the combined revenue of the three largest firms divided by total industry revenue: 60,000 divided by 80,000 equals 75 percent.
- A60%Correct
- B75%
- C65%
- D70%
Explanation
Top three revenue = 28,000 + 20,000 + 12,000 = 60,000 crore. CR3 = 60,000/80,000 = 75%. So the correct figure is 75%, not 60%.
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