Investor Genius Final Quiz

IG Basic Final Quiz

Choose the best answer from the available choices. One response must be selected for each question.

What are some ways to determine whether a company is a good candidate for your investing strategy?

Check your relevant stock charts consistently, looking for the convergence (or absence) of simple chart indicators.

Evaluate whether their sales and expenses grow together, or whether there are discrepancies in the numbers that break your rules.

Whether the company's PE ratio is at an acceptable level.

Determine whether consumers are, in fact, following the company or sector's advertising to buy their products.

All of the above.

None of the above.

How is it possible for you to find and target new investment candidates every year?

Companies are born, grow, and die off as part of the normal life cycle of businesses. If I invest systematically, I can consistently find good entry and exit opportunities based the correlated growth or decline in value.

I can research and be observant of the company's management proficiency, operational performance, and how healthy its financial numbers are.

The cultural trends of consumers change, and with them are opportunities to build profitable businesses in which I can invest.

All of the above.

None of the above.

Which of the following are major considerations when preparing and reinforcing your investing strategy for inevitable economic crashes and bear markets?

If the downward trend only affects one company or sector, researching a move to other, more profitable stocks/sectors is probably in my best interest.

If the whole stock market is falling together, I can use simple indicators to decide whether it's best to take my money to safety (i.e. cash) until the market clearly rebounds.

If I determine that the dip in the market is mild enough, I may want to hold onto my current investments and let their share prices bounce back with the rest of the market.

All of the above.

None of the above.

Which of the following best describes growth investing as an overall investing strategy?

When companies incentivize me to invest in their shares by cutting me checks for a certain percentage of corporate profits. The more shares I hold, the more dividends I receive, so it's a growth strategy.

Investing in companies I determine to be undervalued, meaning I've concluded that the true value of shares in a certain company is lower than what's reflected in the current asking price on the stock exchange.

Building equity through investments that grow strongly over several years (but not usually decades), and selling once the growth stagnates or the stock's price action triggers my exit rules.

All of the above.

None of the above.

IG Basic Final Quiz

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