Series 79 practice questionmediumIndustry Concentration
Which measure is MOST commonly used to assess industry concentration?
- AHerfindahl-Hirschman Index (HHI)✓ Correct answer
- BEBITDA margin
- CQuick ratio
- DInventory turnover
Explanation
Why A — Herfindahl-Hirschman Index (HHI)
The HHI is a standard metric for industry concentration, used in regulatory reviews. EBITDA margin measures profitability, and quick ratio and inventory turnover assess liquidity and operating efficiency.
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