Fundamental and Technical Analysis Flashcards
7 cards from real CSC practice questions. Tap to flip, then mark Knew It or Still Learning โ missed cards come back until you master them.
Read the first 7 Fundamental and Technical Analysis flashcards as text
Which ratio measures how efficiently a company uses its assets to generate sales?
Answer: Asset turnover ratio
Asset turnover ratio (sales divided by total assets) measures how efficiently management uses assets to generate revenue.
In technical analysis, a 'death cross' occurs when:
Answer: The 50-day moving average crosses below the 200-day moving average
A death cross is a bearish signal where the shorter-term 50-day moving average crosses below the longer-term 200-day moving average.
The Gordon Growth Model is used to value a stock based on:
Answer: A constant growth rate of dividends in perpetuity
The Gordon Growth Model values a stock as the next dividend divided by the difference between the required return and the constant dividend growth rate.
Which of the following best describes 'support' in technical analysis?
Answer: A price level where buying interest is strong enough to prevent further decline
Support is a price level at which demand is strong enough to prevent the price from falling further, acting as a floor.
Enterprise Value (EV) is calculated as market capitalization plus:
Answer: Total debt minus cash and cash equivalents
EV = Market Cap + Total Debt โ Cash and Cash Equivalents, representing the theoretical takeover price of a company.
In fundamental analysis, a high inventory turnover ratio generally indicates:
Answer: Efficient inventory management or strong sales
A high inventory turnover ratio indicates that goods are selling quickly and inventory is being managed efficiently.
The 'flag' pattern in technical analysis is considered a:
Answer: Short-term continuation pattern
A flag is a short-term continuation pattern where price consolidates in a narrow channel against the prior trend before resuming in the original direction.