WorksheetsFundamental Analysis Quiz
Total questions: 10
Worksheet time: 5mins
Fundamental analysis is the study of basic, underlying factors that will affect the supply and demand of the commodity being traded in futures contracts.
True
False
Which of the following best describes fundamental analysis?
Analysis of past price action to determine future price movements
Analysis based on fixed convictions
Analysis of investor risk appetite
Analysis of the forces that influence the economy
Which of the following assumption does the constant growth dividend discount model require?
A. Dividend grow at a constant rate
B. Dividend growth rate continues indefinitely
C.The required rate of return is less than dividend growth rate
A
B
C
A and B
What is the main purpose of the stock market?
It brings together those wanting to raise capital with those who wish to invest
It is the marketplace where goods are bought and sold according to grades or standards and on the basis of standard contract terms
It issues currency
It is the place to find the perfect partner
People who buy shares in expectation of a price rise on the stock market are called
bulls
bears
optimists
storks
People who sell shares in expectation of a drop in price on the stock market are called...
bears
bulls
hedgehogs
pessimists
To determine a company's underlying value Fundamental Analysis uses
Charts
Graphs
Ledgers
Revenues
Fundamental Analysis helps to produce a value that an investor can compare to its
Future Price
Current Price
Assets
Book Value
