a. During the recession business cycle, all of the following sectors underperform the market EXCEPT

Multiple Choice

Consumer discretionary

Utilities

Communication Services

Information Technology

b.

Which of the following is NOT a sector of the S&P?

Multiple Choice

consumer discretionary

financials

technology

government

energy

c.

Which one of the following market sentiment index (MSI) values represents the worst buying opportunity?

Multiple Choice

.61

.16

.82

.29

.48

d.

The free cash flow model: I. can be used to value a company with negative earnings. II. is based on a firm having positive cash flows. III. requires that a firm pay a dividend. IV. directly estimates a value of a firm's equity.

Multiple Choice

I, II, and III only

I only

I and III only

I and II only

I, II, III, and IV

e.

If government expenditures exceed tax revenue the resulting shortfall is termed a ________.

Multiple Choice

taxing deficiency

revenue shortfall

budget deficit

budget shortfall

revenue deficiency

f.

Which of the following is NOT considered a leading economic indicator?

Multiple Choice

stock prices

consumer expectations index

interest rate spread

manufacturing and trade sales

M2 money supply

g. During the late cycle of the business cycle, what sector typically and consistently overperforms the market?

Multiple Choice

Consumer staples

Information Technology

Consumer discretionary

Real Estate

h.

Based on the dividend discount model, an increase in which of the following will lower the current value of a stock? I. amount of the next dividend II. dividend growth rate III. discount rate

Multiple Choice

I only

III only

I, II, and III

II and III only

I and II only

i.

Which of the following is NOT a primary goal of the Federal Reserve?

Multiple Choice

keep inflation in check

moderate the business cycle

help achieve long-term economic growth

encourage consumer spending

generate full employment

j.

Which one of the following Arms values is the least bearish?

Multiple Choice

.88

.45

1.03

.28

1.26

k. The constant perpetual growth model assumes the:

Multiple Choice

discount rate increases at a constant rate.

dividends are paid for a stated number of years only.

dividends are constant in amount.

net income is all paid out in dividends.

growth rate is less than the discount rate.

l.

The minimum price at which a security is expected to trade is called the:

Multiple Choice

par value.

resistance level.

stop value.

Elliott wave price.

support level.

m. Which one of the following models can be used to value the stock of a firm that maintains a one hundred percent retention ratio?

Multiple Choice

perpetual dividend growth

perpetual cash flow

supernormal growth

residual income

two-stage growth

n.

A stock's price has been relatively constant for an extended period of time. In this instance, the Bollinger bands are:

Multiple Choice

relatively close to each other.

non-existent.

steeply upward-sloping.

vertical.

steeply downward-sloping.

o.

According to technical analysis, which one of the following is best seen as a buying opportunity?

Multiple Choice

an MSI value of .1 or less

a breakout of a resistance level

top of Elliott Wave 5

a downward sloping advance/decline line

a flat advance/decline line

p.

Which of the following are commonly examined during the process of a fundamental analysis? I. sales II. book value III. earnings per share IV. cash flow

Multiple Choice

I, II, III, and IV

I, II, and IV only

I and IV only

II, III, and IV only