1. Technical chart formation suggesting a stock breakdown.

2. A earnings bulge for one quarter followed by a lower next quarter and a plunge the following quarter.

3. A man with thinning hair who wears a toupee as a supplement.

II. Before the prolonged bull market of the 90's, how long did a bull market last?

1. 96 months

2. 120 months

3. 10 months

4. 40 months

III. When stock markets experienced bear markets prior to the 90's, how long did bear markets (declines of approximately 25%) average?

1. 24 months

2. 40 months

3. 10 months

4. 120 months

IV. The Major Index Price/Earnings Multiple currently approximates 30x. What is a more normal average P/E?

1. 10x

2. 25x

3. 15x

4. 40x

V. What is a Head and Shoulders?

1. Shampoo from P&G.

2. Stock who well outperforms the averages and is, hence, "head and shoulders" above the pack.

3. A chart formation suggesting either a top or a bottom.

4. A CEO of a company and his/her COO.

VI. What is GARP?

1. General Average Rate of Profit.

2. Growth in Annual Rate of Profit.

3. A nerd who programs in Cobol and Fortran.

4. Growth at a Reasonable Price.

VII. It's a good sign when sales are accelerating while receivables and inventory turns are slowing.

1.True

2. False

VIII. If the 30 Year Treasury Bond is at 5%, fair value for the market P/E would be:

1. 10X

2. 15x

3. 30x

4. 20x

IX. The term 300 over the curve means that a debt instrument is three percent over the yield of a comparable treasury.

1. True

2. False

X. The term dilution means which of the following?

1. Issuing relatively low P/E stock to buy relatively high P/E stock with the result future EPS will be less than previously forecast.

2. A lack of future earnings visibility due to uncertainty.

3. Mixing two businesses that are unrelated which dilutes management focus.

XI. To regress to the mean suggests;

1. Market participants regressing to the worst type of fear and greed.

2. Earnings deterioration where there is a fall-off in earnings acceleration.

3. Where the market rates of return to normal levels, suggesting a long period of out-performance is followed by long period of under-performance.

XII. EBITDA, Cash Flow and FFO are essentially the same.

1. True

2. False

XII. The "sell side" of the market and the "buy side" basically describe who is selling and who is buying.

1. True

2. False