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1.
Famous investor Benjamin Graham's 'Mr. Market' character could best be described as _______.
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Temperamental. Mr. Market often (but not always) operates according to emotion, like many investors do.
2.
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.
3.
Which of the following best defines the term "intrinsic value"?
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The true worth of a business, which is entirely separate from its stock market price. Intrinsic value is the true worth of a business, which is entirely separate from its stock market price. The intrinsic value of a business is based on its balance sheet net worth and/or future earnings power, not on what participants in the market are willing to pay.
4.
According to Graham, what are the features of an investment operation?
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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.
5.
Value investors look to buy assets that are priced _______.
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Below the assets' true value. These investors consider them good deals.