Stocks Intermediate: Value Stocks

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1.
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.
2.
Which of the following is an example of a cyclical industry?
Choose wisely. There is only one correct answer.
Chemicals. The chemical industry tends to respond quickly to changes in the economy as a whole.
3.
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.
4.
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.
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.