Question

9. When considering the value vs growth investing styles, which of the following characteristics would not be a characteristic found in the value approach?

Group of answer choices

a. Low multiples (Price-to-earnings, price-to-book value, etc.)

b. Low (or no) dividends

c. Out-of-favor stocks

d. Favorite of Warren Buffett and Benjamin Graham

10. If I see a DELTA Airlines plane crash as I am walking out of Cameron Hall, and I am able to sell my DELTA stock before the price falls, it would be a violation of ______________ market efficiency.

Group of answer choices

a. weak form

b. semi-strong form

c. strong form

d. ultimate form

11. Which of the following stock valuation approaches would be the one most likely to be highly influenced by behavioral biases of investors?

Group of answer choices

a. Technical analysis

b. Fundamental analysis

c. Top-down approach

d. Bottom-up approach

Answer 1

9)

The value approach to investing aims at finding stocks with low multiples, with out of favor stocks which are favorites of investors like Buffet and Graham.

Answer is b. Low (or no) dividends

10)

In a semi strong form of market efficiency all kinds of past price information and public information are fed into the current prices of the security. Here since the public information of delta airlines crash is not captured as soon as the event occurs, it is a violation of semi strong form of efficiency.

Answer is b. semi-strong form

11)

Behavioral biases in the investors can influence technical analysis, as investors have the habit of choosing stocks based on price movements and these price movements are highly volatile.

Answer is a. Technical analysis