FIN 351 TEXT QUIZ CHAPTER 10

81 Value Lines Ranking System covering 1700 companies has demonstrated
A That stocks ranked one under perform the market
B. That stocks ranked five perform about at the market average
C. That stocks ranked one outperform the market
D. That stocks ranked five outperform the market
82. An unexpected earnings surprise refers to the situation where
A. Announced earnings were in line with analysts favorable earnings expectations
B. Announced earnings were better or worse than the analysts' forecast number
C. Announced earnings were significantly below last year's earnings
D. The operating and financial leverage caused earnings to accelerate coming out of the trough of a
business cycle
83. As discussed in Chapter 10, what combination of factors is most likely to lead to superior returns.
A. A high P/E ratio, small size, and a high book to market value ratio
B. A low P/E ratio, small size, and a low book to market value ratio
C. A low P/E ratio, small size, and a high book to market value ratio
D. A high P/E ratio, small size, and a low book to market value ratio
84. The January upward stock movement effect is often linked to
A. Surprise earnings
B. Tax considerations
C. Early in the year enthusiasm
D. The neglect effect
85. The week-end effect indicates stocks tend to ___________ on Friday and ___________ on Monday.
A. Decline; peak
B. Decline; decline
C. Peak; peak
D. Peak; decline