Choose wisely. There is only one correct answer to each question.
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1.
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.
2.
A business's intrinsic value is its stock market price.
False. The intrinsic value is its actual worth, which can be learned from its financial statements.
3.
Which classic investment book did Benjamin Graham author?
The Intelligent Investor. Graham also wrote 'Security Analysis,' an earlier book.
4.
According to Benjamin Graham, why should investors use a 'margin of safety' when settling on a price to pay for a company's stock?
The estimates of the stock's intrinsic value are not likely to be completely accurate. Because it involves so many assumptions, such estimates are not likely to be completely accurate. Thus the need for a margin of safety.
5.
Value investors look to buy assets that are priced _______.
Below the assets' true value. These investors consider them good deals.
