1. The most important factor to successful investing is:  

  a b c

a) Knowing which stocks will go up
b) Knowing which stocks will go down
c) Knowing how to invest
 

Portfolio Planning

2. To reduce risk, one of the basic principals of portfolio planning is: 

a b c

a) Diversification, i.e. rather than investing in one share or industry only, one should invest in a spread of shares in different industries. By doing this, one reduces the risk of losing money when a particular share or shares are in trouble;
b) Bring down the average cost of shares within your portfolio by buying additional shares at lower prices
c) Liquidate your share portfolio and buy options in the same companies;
 

Investment Analysis & Economics

3. According to Martin Pring in his book "Technical Analysis Explained", movements in the stock market: 

  a b c

a) Tend to lead changes in the economy by 6 to 9 months;
b) Tend to lag changes in the economy by 6 to 9 months;
c) Are a reflection of the prevailing economic circumstances:
 

Checklist for Value Investing

4. When investors use the term "value stocks" they are generally referring to stocks:

  a b c

a) That are high risk but offer the potential for high return in the short term;
b) That are seen as being safe, reasonably priced and offering the potential for an acceptable return at an acceptable level of risk;
c) That are low risk and offers the potential for low, but steady returns over the long term;
 

Checklist for Short Term Momentum Investing

5. The essence of momentum investing is:

  a b c

a) Analysing the financial accounts of a group of companies and looking to buy the best performer;
b) Identifying trends in the market and timing our entry and exit into appropriate stocks;
c) Analysing the daily turnover of shares of stocks and buying into companies with greatest volume;