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Stocks Intermediate: Value Stocks

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1.
You can often find value stocks during a bear market but seldom during a bull market.
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False. You can find value stocks during either a bear market or a bull market.
2.
Value investors aim to buy several months after a turnaround in a stocks performance.
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False. Value investors aim to buy right before an expected turnaround in a value stocks performance.
3.
Which of the following factors is least likely to indicate a value stock?
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A low book value. A low book value indicates low net assets, which could have a negative impact on future earnings growth.
4.
While all stocks might be undervalued at some time, investors watch for certain conditions that can help them find value stocks.
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True. There are certain conditions under which stocks may be undervalued.
5.
Which of the following is an example of a cyclical industry?
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Chemicals. The chemical industry tends to respond quickly to changes in the economy as a whole.