Analysis Beginner:
Analyzing Investments
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1.
Fundamental analysts use a corporation's financial information to determine its stock's intrinsic value.
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True
False
True. Fundamental analysts are concerned with the state of the company.
2.
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.
3.
The total market value of a companys available stock shares is measured by ________.
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Growth
Past earnings
Capitalization
Capitalization. The total market value of a companys available shares is measured by capitalization.
4.
Which of the following does not measure stock value?
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The P/E ratio
Book value per share
Net profit margin
Net profit margin. Net profit margin does not measure stock value. The other two do, in different ways.
5.
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.
6.
The main goal of security analysis is to _______.
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Eliminate risk
Calculate the real value of a security
Get the best price for a security
Calculate the real value of a security. The main goal of security analysis is to calculate the real value of a security.
7.
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.
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DONE