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Quiz 2

Total questions: 15

Worksheet time: 11mins

Name
Class
Date
1.

Fluctuation of interest rates is an example of company-specific matters that affect the value of an equity.

a)

TRUE

b)

FALSE

2.

The selective function of security analysis helps investors determine whether an issue should be bought, sold, retained, or exchanged for some other.

a)

TRUE

b)

FALSE

3.

Security analysis can determine the absolute value of a security, thus guarantee the investors profit.

a)

TRUE

b)

FALSE

4.

A day-to-day trading is also referred to as “buying high and selling higher” and looks for a trading pattern.

a)

TRUE

b)

FALSE

5.

Relative valuation approach determines the equity value by comparing it in the same industry.

a)

TRUE

b)

FALSE

6.

The Philippine Stock Exchange is responsible for the securities regulations in the country.

a)

TRUE

b)

FALSE

7.

Bid rigging is an illegal practice where bidders conspire on who will win in the bidding of the security.

a)

TRUE

b)

FALSE

8.

An index copies the portfolio of an exchange traded funds.

a)

TRUE

b)

FALSE

9.

Hedge fund is open for accredited investors only.

a)

TRUE

b)

FALSE

10.

Security analysis helps reduce the gambling aspects of investing.

a)

TRUE

b)

FALSE

11.

Some investors analyze securities to justify their investment decisions.

a)

TRUE

b)

FALSE

12.

Under intrinsic value approach, if the stock is trading above its net present value, it signals to “buy” the stock.

a)

TRUE

b)

FALSE

13.

Paired trading investors track the traditional pricing relationship between two securities that may or may not have business similarities.

a)

TRUE

b)

FALSE

14.

Security analysis suggests that the price of a security will eventually consolidate its true economic value after some irrational fluctuations.

a)

TRUE

b)

FALSE

15.

Technical analysis valuation predicts the stock price using some financial ratios such as price/earnings ratio.

a)

TRUE

b)

FALSE