Strategy Intermediate: Value Investing

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Value investors aim to assess a stock based on its historical performance in the market.
Choose wisely. There is only one correct answer.
False. Value investors aim to assess a stock based on the companys strengths and prospects, independent of the stocks performance.
2.
A company's book value is _______.
Choose wisely. There is only one correct answer.
The value of its assets minus liabilites. Book value is the value of a company's assets.
3.
Value investors identify variables that may push up the price of a value stock in the next two or three years.
Choose wisely. There is only one correct answer.
False. Value investors identify variables that may push up the price of a value stock in the near future.
4.
A value stock is issued by a company that _______.
Choose wisely. There is only one correct answer.
Has the resources to grow. A careful review reveals that it will likely grow in the future, even during economic downturns.
5.
For value investors, which of the following would be the least helpful in evaluating a company?
Choose wisely. There is only one correct answer.
Quarterly sales. A value investor usually focuses on factors that reveal the fundamental capacity and potential of the company over the long term.