n NISM Certifications
XV NISM Series XV
Medium

In Structure-Conduct-Performance (SCP) Analysis, when analyzing the 'Performance' of an industry, which aspects do analysts focus on?

Practice question from NISM XV Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The competition in the industry

  2. B

    The Return on Equity

  3. C

    The Return on Capital Employed

  4. Both B and C

    Correct answer

Why this is the answer

Performance analysis in SCP focuses on financial outcomes such as Return on Equity (RoE) and Return on Capital Employed (RoCE), which indicate profitability and efficiency. Competition and market structure are considered under the 'Structure' stage, not 'Performance.'

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