Stocks Intermediate: Value Stocks

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1.
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.
2.
Stock from which of the following companies is most likely to be undervalued and might warrant additional research?
Choose wisely. There is only one correct answer.
A company that has just reported its first drop in annual earnings in a decade. The decline may be temporary.
3.
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.
4.
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.
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.