INVESTMENT ANALYSIS AND MANAGEMENT 4 (AM107V) ASSESSMENT 1 COMPLETE AND E-MAIL TO "Sedilamalepe@gmail.com 1. A higher industry P/E will result in a(n)... 1. Higher required return 2. Decrease in an industry's business risk. 3. Decrease in an industry's growth rate. 4. Increase in an industry's liquidity risk. 2. Industry analysis is important because... 1. It is unusual for a firm in a troubled industry to perform well. 2. There are substantial differences in stock market performances among industry groups. 3. There is considerable dispersion in stock market performance among industry groups. 4. All of the above 3. Which of the following stages of the industry life cycle offers the highest potential returns. 1. Start-up 2. Consolidation 3. Maturity 4. Relative decline 4. At what stage of the industry life cycle would a company face an influx of competition 1. Start-up 2. Consolidation 3. Maturity 4. Relative decline 1