Analysis Beginner:
Analyzing Investments
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1.
A _______ chart is used to track a stock's price momentum.
Choose wisely. There is only one correct answer.
Line
Bar
Point
Point. A point chart is used to track a stock's price momentum.
2.
Which of the following factors is examined in security analysis?
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Cash flow
Earnings
Dividends
All of the above
All of the above. Cash flow, earnings, and dividends are all evaluated in security analysis.
3.
Which of the following are used in technical analysis?
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Charts
Graphs
Indicators
All of the above
All of the above. Technical analysis uses charts, graphs, and indicators, among other tools.
4.
An upward trend that shows a reversal pattern will _______.
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Go down
Go up even more
Stay the same
Go down. An upward trend that shows a reversal pattern will go down.
5.
The main information source for fundamental analysis is the cash flow statement.
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True
False
False. The main information source for fundamental analysis is the balance sheet.
6.
Fundamental analysts determine a security's value by looking at its market price.
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True
False
False. Fundamental analysts determine a security's value by looking at the financial health of the company issuing the security.
7.
A high debt-to-equity ratio is an indicator of low risk.
Choose wisely. There is only one correct answer.
True
False
False. A high debt-to-equity ratio is an indicator of high risk. It means the company is carrying a lot of debt relative to equity.
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