Choose wisely. There is only one correct answer to each question.
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1.
According to Ben Graham, where should we turn to find a business's intrinsic value?
The business's financial statements. The financial statements, especially the balance sheet and income statement, will provide information needed to find the business's intrinsic value.
2.
According to Graham, what are the features of an investment operation?
Thorough analysis, safety of principal, and an adequate return. According to Graham, an investment operation must involve thorough analysis, safety of principal, and an adequate return; otherwise the operation is speculative.
3.
Famous investor Benjamin Graham viewed fluctuations in stock prices as _______.
Opportunities to buy and sell wisely. He cautioned against making too much worry out of price fluctuations.
4.
Which statement would Benjamin Graham most agree with?
"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.
5.
According to Benjamin Graham, an investor should ensure a margin of safety when considering buying a stock.
True. The purpose of the margin is to protect against unforeseen events that could lead to loss.
