Forecasting of future trends based only on historical analysis is ______ .

Feasible

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Not feasible

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Non financial

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Financial

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Solution

The correct option is B Not feasible
One of the limitation of ratio analysis which is arise primarily from the nature of financial statements is - Forecasting. Forecasting of future trends based only on historical analysis is not feasible. Proper forecasting requires consideration of non-financial factors as well.

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