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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.
Of the following, the most likely external factor to trigger an expected turnaround in a value stocks performance is that _______.
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A respected economic forecaster predicts a boom in the companys industry. This would almost certainly benefit the company.
3.
Which of the following is the least likely internal factor to trigger a rise in the price of a value stock?
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Production employees strike for higher wages. Unless this problem can be solved quickly, it may threaten the companys prospects for growth.
4.
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.
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.