There has been considerable growth in recent years in the use of economic analysis in investment management. Further significant expansion may lie ahead as financial analysts develop greater skills in economic analysis and these analyses are integrated more into the investment decision- making process. The following questions address the use of economic analysis in the investment decision-making process. a. 1. Differentiate among leading, lagging, and coincident indicators of economic activity, and give an example of each. 2. Indicate whether the leading indicators are one of the best tools for achieving above- average investment results. Briefly justify your conclusion. b. Interest rate projections are used in investment management for a variety of purposes. Iden- tify three significant reasons why interest rate forecasts may be important in reaching invest- ment conclusions. c. Assume you are a fundamental research analyst following the automobile industry for a large brokerage firm. Identify and briefly explain the relevance of three major economic time se- ries, economic indicators, or economic data items that would be significant to automotive in- dustry and company research.