The Results of Value Line's Ranking of 1700 Stocks' Forecasted

question 53

Multiple Choice

The results of Value Line's ranking of 1700 stocks' forecasted performance

• A) indicates that an upgraded stock has abnormal returns for up to 13 weeks.
• B) show no difference when a stock is downgraded by a rank.
• C) are not valid as a majority of stocks receive the top rank.
• D) do not indicate better forecasts than a random walk.

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Definitions:

NSF Check

Stands for Non-Sufficient Funds Check, which is a check that cannot be processed because the writer’s account does not have enough funds.

Outstanding Checks

Checks that have been written and recorded in the issuing account but have not yet been cashed or cleared by the bank.

Checks Outstanding

Checks outstanding refer to checks that have been written and recorded in accounting books but have not yet been cashed or cleared by the bank.

Deposits In Transit

Funds that have been received and recorded by a company but have not yet been recorded by the bank.