1. Profit margins and ROE's tend to be driven to normal levels by competition over time.
True
False
2. The mean-reverting behavior of sales growth and return on equity that is demonstrated by the broader market can be applied to all companies in that market.
True
False
3. Forecasting represents the first step of prospective analysis and serves to summarize the forward looking view that comes from business strategy analysis, accounting analysis and financial analysis.
True
False