Series 79 practice questioneasyIndustry Peer Group Selection
When selecting peer companies for industry analysis, the MOST important criteria is:
- ASimilarity of business model and operations✓ Correct answer
- BGeographic proximity
- CStock price
- DDividend history
Explanation
Why A — Similarity of business model and operations
Peers are chosen based on similar business models and operations, ensuring meaningful comparisons. Geography, stock price, and dividends may factor in, but they are less critical than core business similarities.
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