Investment Jobs Equity Markets and Stock Analysis Test

Question 1

Which metric measures a company's stock price relative to its earnings per share?

Accepted Answer

Price-to-Earnings Ratio

Answer

Price-to-Book Ratio

Answer

Dividend Yield

Answer

Return on Equity

Question 2

A company with a beta of 1.5 is expected to:

Accepted Answer

Be 50% more volatile than the market

Answer

Move at the same pace as the market

Answer

Be 50% less volatile than the market

Answer

Have no correlation with the market

Question 3

What does 'market capitalization' represent?

Accepted Answer

Total value of a company's outstanding shares

Answer

Total annual revenue of a company

Answer

Total assets minus total liabilities

Answer

Earnings before interest and taxes

Question 4

Which type of stock order guarantees execution but not price?

Accepted Answer

Market order

Answer

Limit order

Answer

Stop-limit order

Answer

Good-till-canceled order

Question 5

What is the primary characteristic of a 'value stock'?

Accepted Answer

Trades below its perceived intrinsic value

Answer

High growth rate with premium valuation

Answer

Pays no dividends to shareholders

Answer

Has a beta greater than 1.5

Question 6

The Efficient Market Hypothesis (EMH) in its strong form suggests that stock prices reflect:

Accepted Answer

All public and private information

Answer

Only publicly available information

Answer

Only historical price data

Answer

Only insider trading activity

Question 7

What does 'ex-dividend date' mean for a stock investor?

Accepted Answer

The date by which you must own shares to receive the dividend

Answer

The date the company announces its dividend

Answer

The date the dividend payment is actually sent to shareholders

Answer

The date the company's dividend policy is reviewed