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.
Which of the following best suggests that the price of an undervalued stock may soon increase?
Choose wisely. There is only one correct answer.
A corporate takeover is imminent. An investor may expect the takeover announcement to push up the price of the undervalued stock.
4.
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.
5.
Value investing is about measuring a companys past performance, not forecasting its future profits.
Choose wisely. There is only one correct answer.
False. Value investing is about measuring a companys capacity and potential for growth.