Question

What is a "ten-bagger"?

A large cup of tea

A stock that returns ten times your original purchase price

A company that can produce 10 of something for the price of 1

A type of security that is traded in the stock market

What is Peter Lynch's primary investment theory?

Invest in what you know

Become an expert at complex investing strategies

Read many books

Listen to your broker

What is The Motley Fool?

A comedian

A stock trading program

An information website for financial news and investment strategies

The day's worst-performing stock

What is the Sharpe Ratio?

A measure of a portfolio's return versus the riskiness of the portfolio

A way to spread out your stock sales

A ratio that helps you evaluate a stock price

A ratio that tells you how much of your portfolio to invest in a particular stock

What other sources are valuable for investment information?

MSN Money

Yahoo! Finance

Television shows

All of the above

Answer 1

1 ) The correct answer is - A stock that returns ten times your original purchase price.

A ten - bagger is a term used for those investments that produces return ten times of the original purchase price. These stocks have strong earning growth prospects.

All other options are incorrect.

2 ) The correct answer is - Invest in what you know

The basic investment theory of Peter Lynch's was to always invest in those companies to which the investor is familiar with i.e Invest in what you know. His idea was to do the fundamental analysis about the stock for which he is familiar and then do the investment.

Hope it helps!