Page 640 - How to Make Money in Stocks Trilogy

Test Your Knowledge 469

How to Make Money

in Stocks Quiz

1. The “M” in CAN SLIM stands for
A. making new highs
B. margins
C. market direction
D. money
2. As recommended by the CAN SLIM Investment System, you should
sell a stock if
A. it falls 7% from its 52-week high
B. it falls 10% from the price at which you purchased it
C. it climbs above its 50-day moving average on heavy volume
D. it falls 7% to 8% from the price at which you purchased it
E. it moves sideways on heavy volume
3. Which of the following indicators generally has the least impact on a
stock’s price?
A. Quarterly earnings growth
B. P/E ratio
C. Return on equity
D. Annual earnings growth
E. Sales growth
4. Which of the following is NOT a proper chart pattern?
A. Saucer with handle
B. Ascending base
C. Cup with handle
D. Double bottom
E. Triple bottom
5. It is recommended that a stock have at least ________ return on equity.
A. 15%
B. 25%
C. 17%
D. 30%
E. None of the above