Analysis Beginner: Analyzing Investments

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 _______ chart is used to track a stock's price momentum.
Choose wisely. There is only one correct answer.
Point. A point chart is used to track a stock's price momentum.
2.
Which of the following factors is examined in security analysis?
Choose wisely. There is only one correct answer.
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?
Choose wisely. There is only one correct answer.
All of the above. Technical analysis uses charts, graphs, and indicators, among other tools.
4.
An upward trend that shows a reversal pattern will _______.
Choose wisely. There is only one correct answer.
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.
Choose wisely. There is only one correct answer.
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.
Choose wisely. There is only one correct answer.
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.
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.