Week 3 - M3- Pregrad

What does a high P/E ratio generally indicate about a stock?

• It is undervalued

• It is overvalued or has high growth expectations

• It pays high dividends

• It has low volatility

Which of the following is not a component of fundamental analysis?

• Industry analysis

• Technical indicators

• Company financials

• Management evaluation

Which financial ratio best reflects a firm’s ability to cover its short-term obligations?

• Debt/Equity Ratio

• Current Ratio

• Return on Assets

• Price/Earnings Ratio

The 'head and shoulders' pattern is typically interpreted as:

• A bullish continuation

• A bearish reversal

• A neutral trend

• An earnings anomaly

Which bias reflects the tendency to overvalue information that supports one’s pre-existing beliefs?

• Anchoring bias

• Confirmation bias

• Availability bias

• Hindsight bias

A technical analyst is most concerned with:

• Past price patterns and volumes

• Economic indicators

• Dividend payout ratios

• Net income

Which of the following is not a stage in top-down analysis?

• Country-level analysis

• Industry-level analysis

• Sentiment analysis

• Company-level analysis

Behavioral finance is used to explain:

• Efficient market hypothesis

• Rational investor decision-making

• Irrational investor behavior and biases

• Government policy effects on stocks

Technical indicators such as RSI and MACD are used to:

• Evaluate financial statements

• Identify buy/sell signals

• Determine intrinsic value

• Predict GDP growth

A bond's yield increases when:

• Its price increases

• Its maturity decreases

• Its coupon rate increases

• Its price falls