Stocks Intermediate: Value Stocks

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1.
Of the following, the most likely external factor to trigger an expected turnaround in a value stocks performance is that _______.
Choose wisely. There is only one correct answer.
A respected economic forecaster predicts a boom in the companys industry. This would almost certainly benefit the company.
2.
A stock issued by a company with a large debt load is likely to be a value stock.
Choose wisely. There is only one correct answer.
False. A stock issued by a company with a large debt load may lack the resources to increase future earnings.
3.
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.
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.
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.