Home > Stocks > Intermediate
Stocks Intermediate: Value Stocks

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Which of the following is an example of a cyclical industry?
Choose wisely. There is only one correct answer.
Chemicals. The chemical industry tends to respond quickly to changes in the economy as a whole.
2.
Investors are less likely to find value stocks in non-cyclical industries than in cyclical ones.
Choose wisely. There is only one correct answer.
True. Investors are less likely to find value stocks in stable industries that experience fewer highs and lows.
3.
Which of the following factors is least likely to indicate a value stock?
Choose wisely. There is only one correct answer.
A low book value. A low book value indicates low net assets, which could have a negative impact on future earnings growth.
4.
You can often find value stocks during a bear market but seldom during a bull market.
Choose wisely. There is only one correct answer.
False. You can find value stocks during either a bear market or a bull market.
5.
Of the following, the most likely external factor to trigger an expected turnaround in a value stocks performance is that _______.
Choose wisely. There is only one correct answer.
A respected economic forecaster predicts a boom in the companys industry. This would almost certainly benefit the company.