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1.
You can often find value stocks during a bear market but seldom during a bull market.
Choose wisely. There is only one correct answer.
False. You can find value stocks during either a bear market or a bull market.
2.
Investors are less likely to find value stocks in non-cyclical industries than in cyclical ones.
Choose wisely. There is only one correct answer.
True. Investors are less likely to find value stocks in stable industries that experience fewer highs and lows.
3.
Which of the following is the least likely internal factor to trigger a rise in the price of a value stock?
Choose wisely. There is only one correct answer.
Production employees strike for higher wages. Unless this problem can be solved quickly, it may threaten the companys prospects for growth.
4.
A value stock is one that is overpriced, given the companys earnings, debt load, price-to-book-value ratio, and future growth prospects.
Choose wisely. There is only one correct answer.
False. A value stock is underpriced, given the companys earnings, debt load, price-to-book-value ratio, and future growth prospects.
5.
Value investors aim to buy several months after a turnaround in a stocks performance.
Choose wisely. There is only one correct answer.
False. Value investors aim to buy right before an expected turnaround in a value stocks performance.