Which of the following methods of picking stocks is not consistent with fundamental analysis?   a. Relying upon the advice of Wall Street analysts   b. Choosing mutual funds that are managed by individuals with good reputations   c. Doing research such as thoroughly reading and analyzing companies' annual reports   d. Viewing individual stock prices as unpredictable

An investment banker most commonly makes money from Group of answer choices A. commissions from buyers. B. artificially supporting the stock price during and after the offering. C. fees from other investment bankers in the syndicate. D. the spread between the issue price and proceeds to the issuer.

Which of the following is not an impairment indicator for investment securities? Group of answer choices decline in credit rating fluctuating stock prices adverse changes in the economy deterioration of earnings

What is the primary motivation of investors in performing security analysis? A-identify the best times to buy and sell securities  B-Contribute to the efficiency of securities markets C-Identify securities whose insrinsic values are at or near their market values  D-Identify mispriced stocks

Which of the following is NOT correct with respect to the Efficient Market Hypothesis? If markets are semi-strong form efficient, then fundamental analysts would not be able to earn abnormally good returns, after considering the risk they assume. O Semi-strong form efficiency says that if a company announces a labor strike, the stock price very quickly adjusts downward. Evidence suggests that markets are NOT strong form efficient, since insiders could make abnormally good returns trading on private information. However, that is illegal. () Semi-strong form efficiency says that when Stryker makes an earning announcement, the stock price quickly reflects the new information. )Weak form efficiency says that technical analysts who study charts of stock prices and volumes can regularly make abnormally good returns, after considering the risk the assume. Page 24 of 30

You believe you have found a trading strategy that could make significant profits. It requires looking at analyst forecasts and purchasing stock where therehas been an upgrade in the recommendation and selling shares where there has been a downgrade in the recommendation.a. Describe which form the Efficient Market Hypothesis will be viola ed if you are able to make significant profits from your trading strategy in the future.b. List three factors that you may be overlooking in assessing the profitability of your trading strategy.

The disposition effect:   a. Is the tendency of stock investors to sell their winning stocks and hold onto their losing stocks   b. Is consistent with regret avoidance behaviour   c. Is a consequence of investors’ preference for lottery-type stocks   d. (a) & (b)   e. (a), (b) & (c)

Why do technical analysts look at the moving average of a company’s stock price, and why do they look at trend lines?  (Did you know that technical analysis is used for bond investing too?)

Which of the following statements is false?   A.   Internal controls are the processes by which the firm ensures that it presents accurate financial statements.   B.   Greenfield investments provide uncertain cash flows with high yields and high growth potential.   C.   Footnotes allow investors or any users to improve their assessments of the amount, timing, and uncertainty of the estimates reported in financial statements.   D.   Secondary markets are the markets in which existing, already outstanding securities are traded among investors.

What is RIGHT? Preferred stocks are a more expensive source of funds than common stocks A higher growth rate of Free Cash Flow leads to a lower evaluation Accounts Payable are NOT part of WACC Book values provide the best estimate for valuation as it comes from audited financial statements