Deck 11: Security Screening

Question 1

The primary motivation for stock screening is

A) the efficient market hypothesis
B) lack of time
C) lack of research material
D) the implications of the efficient frontier

Answer 1

lack of time

Question 2

Common screens described in the text include all of the following except

A) SAT scores
B) speed in the 40-yard dash
C) hobbies
D) bench press ability

Answer 2

hobbies

Question 3

All of the following are characteristics of a good screen except

A) ease of administration
B) relevance and appropriateness
C) acceptance to the user
D) historical precedent

Answer 3

historical precedent

Question 4

An investment service that ranks securities on both timeliness and safety is

A) Value Line
B) Moody's
C) Weissenberger's
D) Standard and Poor's

Question 5

Which of the following timeliness and safety rankings is preferred?

A) 1,1
B) 1,5
C) 3,3
D) 5,1

Question 6

Which of the following publications is published each month with the entire publication conveniently fitting in a briefcase?

A) S&P Stock Guide
B) S&P Stock Report
C) Value Line Investment Survey
D) Moody's Manual of Investments

Question 7

A set of screening criteria dealing with South Africa is the _______ principles.

A) MacBride
B) Sutherland
C) England
D) Sullivan

Question 8

A set of screening criteria dealing with Ireland is the _____ principles.

A) MacBride
B) Sutherland
C) England
D) Sullivan

Question 9

Which of the following is a common screening criterion available from a local newspaper?

A) The PE ratio
B) The current ratio
C) Return on assets
D) Times interest earned

Question 10

The primary objective of a security screen is to

A) reduce the security universe in size
B) find the best potential investment
C) reduce portfolio risk
D) increase portfolio dividends

Question 11

A quick risk assessment can be accomplished by a historical comparison of

A) current ratio and debt ratio
B) ROA and ROE
C) dividend yield and PE
D) payout ratio and plowback ratio

Question 12

Shadow stocks are identified by the

A) American Association of Individual Investors
B) Value Line Investment Survey
C) Standard & Poor's Corporation
D) Dun and Bradstreet Corporation

Question 13

A popular computerized mutual fund screen is published by

A) Computer Systems, Inc.
B) American Portfolios Limited
C) Business Week
D) Dynamic Funds

Question 14

Which of the following would NOT be strictly associated with socially responsible investing?

A) CERES
B) AAIA
C) Sullivan
D) McBride

Question 15

Which of the following has a one-page summary of information on 1700 companies including 15 years of key financial information, a 3-5 year forecast, an historical stock price and volume chart, and a brief write-up describing the primary lines of business with current and future prospects?

A) S&P Stock Guide
B) Business Week quarterly review
C) Wall Street Journal annual review
D) Value Line