Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
Value investors look to buy assets that are priced _______.
Below the assets' true value. These investors consider them good deals.
2.
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.
3.
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.
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, what must an investor do before purchasing a stock?
Ensure the current price allows for a margin of safety. Graham thought it was absolutely critical to buy stocks or bonds only when prices offered a margin of safety. Otherwise, you would not be protected against unforeseen events that may lead to permanent capital loss.
