Value Investing Basics Quiz

10 Questions | Attempts: 455
Share

SettingsSettingsSettings
Value Investing Basics Quiz - Quiz

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

Back to Top Back to top
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.