1. When the earnings yield on the S&P 500 > the Treasury yield, stocks are relatively
a. unattractive
b. attractive
c. its not clear
d. b and c
2. The pioneering stage may offer the ------ potential returns, but with the ------ risks.
a. highest-smallest
b. highest-largest
c. smallest-smallest
d. smallest-largest
3. ---------------- is defined as rapid growth in demand, shakeout of companies
a. Expansion stage
b. Pioneering stage
c. Stabilization stage
d. Decline
4. It is common practice to report the activity of large stocks using the:
a. S&P 500
b. NASDAQ
c .Dow Jones (DJIA)
d. a and c
5. Based on the Business Cycle:
a. stock prices generally rise as the business cycle is approaching a trough
b. as the economy recovers, stock prices may level off or even decline
c. the market P/E usually rises just before the end of the slump
d. All of the above.
6. Corporate earnings are ------- related to stock prices, and interest rates are ------- related.
a. inversely-directly
b. directly-directly
c. directly-inversely
d. inversely-inversely