Unit 13 Portfolio or Account Analysis for Security Selection

Question 1

Low Beta stocks

Answer 1

Utilities
Basic consumer staple

Question 2

High Beta stocks

Answer 2

Cars
Aggressive growth stocks

Question 3

CAPM

Answer 3

relationship between risk and expected rate of return

Question 4

Efficient Markets have ____________ trading volumes and __________ bid-ask spreads

Answer 4

high
tight

Question 5

Timing the market is an example of

Answer 5

technical analysis

Question 6

Trading volume is focused on ___________ analysis

Answer 6

technical

Question 7

Head and Shoulders TOP pattern

Answer 7

reversal of upward market trend

Question 8

Head and Shoulders BOTTEM pattern

Answer 8

reversal of downward market trend

Question 9

EPS =

Answer 9

(net income - preferred dividends) / common shares outstanding

Question 10

Paid-in surplus

Answer 10

amount above par an investor pays for common stock

Question 11

Quick ratio =

Answer 11

(current assets - inventory) / current liabilities

Question 12

Working capital =

Answer 12

current assets - current liabilities

Question 13

Qualified dividends

Answer 13

when stock is held for more than 60 days during the 121-day period around the ex-dividend date

Question 14

Dividend exclusion rule

Answer 14

company owns preferred stock of another company and received a dividend, 50% of that dividend is tax-free, other 50% taxed at corporate rate