Home
>
Strategy
>
Intermediate
Strategy Intermediate:
Value Investing
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.
A value stock is one that is undervalued in the marketplace.
Choose wisely. There is only one correct answer.
True
False
True. A value stock is worth more than its current market price indicates.
2.
Value investors identify variables that may push up the price of a value stock in the next two or three years.
Choose wisely. There is only one correct answer.
True
False
False. Value investors identify variables that may push up the price of a value stock in the near future.
3.
Value investing is about measuring a companys past performance, not forecasting its future profits.
Choose wisely. There is only one correct answer.
True
False
False. Value investing is about measuring a companys capacity and potential for growth.
4.
A company's book value is _______.
Choose wisely. There is only one correct answer.
The value of its assets minus liabilites
Its market value
The value of its stock returns
The value of its assets minus liabilites. Book value is the value of a company's assets.
5.
Which of the following best suggests that the price of an undervalued stock may soon increase?
Choose wisely. There is only one correct answer.
A corporate takeover is imminent.
Corporate earnings reach a new low.
Corporate overhead increases dramatically.
The industry goes into a slump.
A corporate takeover is imminent. An investor may expect the takeover announcement to push up the price of the undervalued stock.
Submit
DONE