#1
What is the P/E ratio used for in stock valuation?
To measure a company's profitability
To assess a stock's relative value
To calculate dividend yield
To determine market capitalization
#2
What does the Price/Sales (P/S) ratio measure?
Profitability of a company
Market sentiment towards a stock
Efficiency of inventory management
Valuation relative to revenue
#3
Which financial metric is used to assess a company's efficiency in utilizing its assets to generate sales?
Return on Equity (ROE)
Asset Turnover Ratio
Earnings per Share (EPS)
Price/Earnings to Growth (PEG) ratio
#4
What is the purpose of the Sharpe Ratio in investment analysis?
To measure a company's profitability
To assess the risk-adjusted return of an investment
To calculate dividend yield
To determine market capitalization
#5
What does the term 'Market Capitalization' represent in stock valuation?
Total assets of a company
Total liabilities of a company
Total market value of a company's outstanding shares
Total revenue of a company
#6
Which financial statement is crucial for analyzing a company's profitability?
Balance sheet
Income statement
Cash flow statement
Statement of retained earnings
#7
What does the Gordon Growth Model (Dividend Discount Model) estimate?
Intrinsic value of a stock
Market capitalization
Earnings per share
Dividend yield
#8
In the context of stock valuation, what does the term 'Beta' represent?
Total market capitalization of a stock
The volatility of a stock relative to the market
The dividend yield of a stock
The intrinsic value of a stock
#9
Which financial ratio indicates a company's ability to meet short-term liabilities with its short-term assets?
Current ratio
Debt-to-Equity ratio
Quick ratio
Return on Assets (ROA)
#10
What does the Earnings Yield indicate in the context of stock valuation?
Profitability per share
Earnings per share
The inverse of the Price/Earnings (P/E) ratio
Dividend yield per share
#11
What is the formula for the Return on Equity (ROE) ratio?
Net Income / Total Assets
Net Income / Shareholder's Equity
Total Revenue / Net Income
Total Assets / Shareholder's Equity
#12
Which investment analysis approach involves studying charts and patterns to predict future stock price movements?
Fundamental analysis
Technical analysis
Quantitative analysis
Econometric analysis
#13
What is the primary focus of the Dividend Discount Model (DDM) in stock valuation?
Earnings growth
Dividend payments
Market capitalization
Price/Earnings (P/E) ratio
#14
In the context of investment analysis, what does the term 'Margin of Safety' refer to?
The difference between market price and intrinsic value
Profit margin of a company
Risk-free rate of return
The excess return of a portfolio over a benchmark
#15
What is the primary purpose of conducting a SWOT analysis in the context of stock investment?
To assess a company's financial ratios
To evaluate a company's internal strengths and weaknesses
To predict stock price movements
To calculate the dividend yield