Stocks Intermediate: Value Stocks

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1.
Which of the following factors is least likely to indicate a value stock?
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A low book value. A low book value indicates low net assets, which could have a negative impact on future earnings growth.
2.
Of the following, the most likely external factor to trigger an expected turnaround in a value stocks performance is that _______.
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A respected economic forecaster predicts a boom in the companys industry. This would almost certainly benefit the company.
3.
You can often find value stocks during a bear market but seldom during a bull market.
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False. You can find value stocks during either a bear market or a bull market.
4.
Which of the following is an example of a cyclical industry?
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Chemicals. The chemical industry tends to respond quickly to changes in the economy as a whole.
5.
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.