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1.
Which statement would Benjamin Graham most agree with?
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"Investing is most intelligent when it is most businesslike." Since stocks represent partial ownership of real businesses, the same behavior that makes sense in the business world makes sense in the stock market.
2.
Which classic investment book did Benjamin Graham author?
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The Intelligent Investor. Graham also wrote 'Security Analysis,' an earlier book.
3.
A business's intrinsic value is its stock market price.
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False. The intrinsic value is its actual worth, which can be learned from its financial statements.
4.
Value investors look to buy assets that are priced _______.
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Below the assets' true value. These investors consider them good deals.
5.
According to Benjamin Graham, an investor should ensure a margin of safety when considering buying a stock.
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True. The purpose of the margin is to protect against unforeseen events that could lead to loss.