Value Investing Basics Quiz

10 Questions | By Valueinvestor | Updated: Mar 21, 2022 | Attempts: 455

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This quiz tests for a basic understanding and knowledge of investing and stock markets

Questions and Answers

1.

When calculating P/E ratio, which type of earnings is generally used
- A.
  
  Operating Earnings Per Share
- B.
  
  Basic Earnings Per Share
- C.
  
  Diluted Earnings Per Share
- D.
  
  Earnings Before Interest and Taxes
2.

Information about Total Assets and Total Liabilities can be found in the
- A.
  
  Income Statement
- B.
  
  Proxy Statement
- C.
  
  Cash Flow Statement
- D.
  
  Balance Sheet
3.

P/B Ratio generally stands for
- A.
  
  Price to Book Ratio
- B.
  
  Price to Basic Earnings Per Share Ratio
- C.
  
  Price to Bond Yield Ratio
- D.
  
  Price to Tangible Book Value ratio
4.

Company A earned 1 million in net income on a share holder's equity of 5 million and total assets of 10 million, Company A 's Return On Equity (ROE) was
- A.
  
  10%
- B.
  
  20%
- C.
  
  50%
- D.
  
  6.67%
5.

The DCF method is often used by value investors to calculate the fair value of a stock or business. DCF stands for
- A.
  
  Discounted Cash Flow
- B.
  
  Distributed Cash Flow
- C.
  
  Deferred Cash Flow
- D.
  
  Diluted Cash Flow
6.

Which of these is *NOT* considered a derivative
- A.
  
  Options
- B.
  
  Futures
- C.
  
  Treasury Bonds
- D.
  
  Swaps
7.

The author of the book "The Intellient Investor" is
- A.
  
  Peter Lynch
- B.
  
  Warren Buffett
- C.
  
  Seth Klarman
- D.
  
  Benjamin Graham
8.

A concept popularized by many noted value investors, in which an investor considers purchasing securities only when the market price is significantly below its intrinsic value is called
- A.
  
  Safety First
- B.
  
  Margin of Safety
- C.
  
  Margin of Error
- D.
  
  Margin of Price
9.

Which of these is *NOT* commonly used as an inventory-costing method
- A.
  
  FIFO
- B.
  
  Cost of Goods Sold
- C.
  
  Average Cost
- D.
  
  LIFO
10.

One of Benjamin Graham's strategies for finding undervalued stocks was
- A.
  
  NCAV Strategy
- B.
  
  Relative Strength Strategy
- C.
  
  50-Day Moving Average Strategy
- D.
  
  MACD Divergence Strategy