Reading 50: Security Analysis Using Value-Based Metrics - black, economic, stocks, class

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1.Using economic value added (EVA) analysis, undervalued stocks may be characterized as stocks with:

A)   high EVA spreads and high invested capital ratios.

B)   low EVA spreads and low invested capital ratios.

C)   low EVA spreads and high invested capital ratios.

D)   high EVA spreads and low invested capital ratios.

2.Using economic value added (EVA) analysis, overvalued stocks may be characterized as stocks with:

A)   low EVA spreads and low invested capital ratios.

B)   low EVA spreads and high invested capital ratios.

C)   high EVA spreads and high invested capital ratios.

D)   high EVA spreads and low invested capital ratios.

3.Using economic value added (EVA) analysis, stocks with positive (negative) ex-ante alphas are characterized as stocks with:

A)   high (low) EVA spreads and high (low) invested capital ratios.

B)   low (high) EVA spreads and low (high) invested capital ratios.

C)   high (low) EVA spreads and low (high) invested capital ratios.

D)   low (high) EVA spreads and high (low) invested capital ratios.

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答案和详解如下：

1.Using economic value added (EVA) analysis, undervalued stocks may be characterized as stocks with:

A)   high EVA spreads and high invested capital ratios.

B)   low EVA spreads and low invested capital ratios.

C)   low EVA spreads and high invested capital ratios.

D)   high EVA spreads and low invested capital ratios.

The correct answer was D)

Using EVA analysis, undervalued stocks may be characterized as stocks with high EVA spreads and low invested capital ratios.

2.Using economic value added (EVA) analysis, overvalued stocks may be characterized as stocks with:

A)   low EVA spreads and low invested capital ratios.

B)   low EVA spreads and high invested capital ratios.

C)   high EVA spreads and high invested capital ratios.

D)   high EVA spreads and low invested capital ratios.

The correct answer was B)

Using EVA analysis, overvalued stocks may be characterized as stocks with low EVA spreads and high invested capital ratios.

3.Using economic value added (EVA) analysis, stocks with positive (negative) ex-ante alphas are characterized as stocks with:

A)   high (low) EVA spreads and high (low) invested capital ratios.

B)   low (high) EVA spreads and low (high) invested capital ratios.

C)   high (low) EVA spreads and low (high) invested capital ratios.

D)   low (high) EVA spreads and high (low) invested capital ratios.

The correct answer was C)

Using EVA analysis, stocks with positive (negative) ex-ante alphas are characterized as stocks with high (low) EVA spreads and low (high) invested capital ratios.