An Asian Performer
Over the last five years, which of the Asian markets listed below outperformed the others, delivering +171% total returns to U.S. investors for an annualized rate of more than +22%?

A.)  Japan
B.)  Taiwan
C.)  South Korea
D.)  Singapore
E.)  Malaysia 
 

Higher Returns and Dividends Abroad
Many investors focus their attention on American markets, but with strong growth abroad, the U.S. has become a market laggard and a "dividend desert." Which of the following markets offers superior total returns and higher average yields than the U.S.?

A.) Taiwan
B.) Italy
C.) Peru
D.) Sweden
E.) All of the above 

20%-Plus REIT Yield
The housing market is struggling, but despite these troubles many commercial real estate investment trusts (REITs) and the funds that invest in them are flourishing. For instance, which of these REIT funds is offering a beefy 21.0% yield?

A.) Nuveen Real Estate Income Fund (JRS)
B.) Dividend Capital Realty Income Allocation Fund (DCA)
C.) LMP Real Estate Income Fund (RIT)
D.) ING Clarion Real Estate Income Fund (IIA)
E.) Cohen & Steers Premium Realty Fund (RPF)
 

Beat the Market with Buffett's Mentor
Over one tumultuous 30-year stretch that included the Great Depression, the Dow Jones Industrials Average returned only +224%. But Benjamin Graham, the father of value investing and Warren Buffett's mentor, handily beat the overall market and scored what total return for his clients during that period?

A.)  554%
B.)  789%
C.)  1,439%
D.)  4,659%
E.)  11,006%

+180% Returns Overseas
It has been said that when the U.S. sneezes, the rest of the world catches a cold -- but in today's global economy that isn't necessarily true. The S&P 500 had a lackluster 2007, delivering just +5.5% in total returns. But which country's market delivered an eye-popping +180% return in 2007?

A) India
B) China
C) Croatia
D) Argentina
E) Ukraine

Highest-Yielding ETF
By offering exposure to a broad basket of stocks, exchange-traded funds (ETFs) provide a higher level of safety than buying individual securities. But they can also offer stellar yields for income investors. What is the highest yield currently offered by an ETF? (Hint: the answer is seven times the S&P 500's average yield)

A.)  4.8%
B.)  6.1%
C.)  7.4%
D.)  8.3%
E.)  14.6%

Bank Dividends
Banks are typically some of the most prolific dividend payers around. Which bank (including its predecessors) has dished out annual dividends for 145 consecutive years -- with payments increasing every year for roughly the last 40?

A.)  U.S. Bancorp (USB)
B.)  Bank of America (BAC)
C.)  Barclays (BCS)
D.)  Wachovia (WB)
E.)  Wells Fargo (WFC)

Short Squeezes
Many poorly performing companies are subjected to intense short selling, but when sellers are wrong, the shares can skyrocket. Which stock saw its share price increase more than +3,200% in less than one year with help from a massive "short squeeze"?

A.) Dendreon Corp. (DNDN)
B.) Microsoft (MSFT)
C.) Southwest Airlines (LUV)
D.) TASER International (TASR)
E.) Acorn International (ATV)  

The Effect of Dividends
Imagine the S&P 500 was split up into five equal groups ranked solely in terms of yield: the 100 highest-yielding stocks in the first group, the next 100 in the second, etc. From 1957 to 2003, stocks in the highest-yielding group would have turned $10,000 into how much?

A.)  $4,627,500 
B.)  $746,220
C.)  $1,490,175
D.)  $3,844,945
E.)  $4,815,160 
 

The Oracle
In 1965, a young Warren Buffett took control of a struggling textile manufacturer named Berkshire Hathaway (NYSE: BRK-B), and used its excess cash flows to make shrewd investments. His success has been legendary -- of the last 43 years Buffett has spent with Berkshire, how many times has the company's stock outperformed the S&P 500 on a yearly basis?

A.)  22 Times
B.)  30 Times 
C.)  35 Times
D.)  37 Times
E.)  43 Times

Solar Power Gains
Relatively speaking, the solar power industry is a tiny sector. After all, solar power constitutes just 0.1% of U.S. electricity generation. But with high energy prices, alternative energy is becoming more widespread -- meaning astounding returns for alternative energy stocks. Which solar power stock booked a remarkable +795% increase in its share price in 2007?

A.)  Energy Conversion Devices (ESLR)
B.)  First Solar (FSLR)
C.)  DayStar (DSTI)
D.)  Suntech Power Holdings (STP)
E.)  Kyocera (KYO)

International Dividend Yields
With the average stock in the S&P 500 yielding a puny 2%, it's a crime not to investigate international markets in search of income investments. After all, yields abroad are much higher than those in the United States. Which country boasts the world's highest average yields, coming in at 7.3%?

A.)   Canada
B.)   Brazil
C.)   Japan
D.)   New Zealand
E.)   Germany

Russian Gas Reserves
With commodity prices near record-high levels, the firms and countries that control the world's oil and natural gas reserves are seeing windfall profits. Which Russian firm controls nearly one-fifth of the world's reserves of natural gas?

A.)  BP
B.)  Lukoil
C.)  Gazprom
D.)  AO Tatneft
E.)  Total

Infrastructure Spending
According to a study by the Urban Land Institute, firms that build and maintain roads, bridges, and other infrastructure will likely see increased profits in the near future, thanks to the United States' need to spend how much on infrastructure by 2010?

A.)  $589 million
B.)  $1.0 billion
C.)  $1.3 billion
D.)  $2.2 billion
E.)  $1.6 trillion

This Sector Has Outperformed Almost All Others Over the Past Three Years
Investors certainly appreciated the +11.5% annual returns posted by the S&P from 2005 to 2007. But which sector delivered gains that were almost six times as high during that time period?

A.)  Retail
B.)  Banking
C.)  Restaurants
D.)  Agrochemicals
E.)  Utilities

The Falling Dollar
The dollar has been in a protracted bear market for years, and one thing is clear: it can be a boon for savvy investors. In Berkshire Hathaway's (NYSE: BRK-B) latest annual report, we discovered that legendary investor Warren Buffett has raked in staggering profits by betting against the dollar. As of November 2007, how much has Berkshire Hathaway profited directly from the dollar's fall?

A.)  $755 Million
B.)  $2.2 Billion
C.)  $10.3 Billion
D.)  $45 Million
E.)  $1.1 Billion

Emerging Markets
The world is full of emerging markets, some more promising for investors than others. Which emerging market region has piqued investors' interest because it is expected to receive a total of nearly $300 billion in economic development aid through 2013?

A.)  South America
B.)  Sub-Saharan Africa
C.)  Eastern Europe
D.)  Central America
E.)  The Pacific Rim

Gaming Revenues
The booming casino gambling industry has spread the world over, from Las Vegas to Macau, enriching those who invest in casinos and the firms that produce gaming equipment. Which of the following gaming areas generates the most revenue for casinos?

A.)  Slot Machines
B.)  Blackjack
C.)  Craps
D.)  Sports Betting
E.)  Roulette

Stock Buybacks
By reducing the number of shares on the market, stock buybacks can increase earnings per share and give stocks a more attractive valuation -- the very act of which often drives shares sharply higher. Of the following five companies, which has announced the single largest buyback program?

A.)  Wendy's (WEN)
B.)  Home Depot (HD)
C.)  Motorola (MOT)
D.)  AT&T (T)
E.)  Cisco Systems (CSCO)

Operating Margins
Operating margin, which measures the percentage of revenues that a company converts into profit, is an important barometer of corporate health -- and thus a key determinant of stock prices. Which of the following companies posted the highest operating margins in 2006?

A.)  Microsoft (MSFT)
B.)  IBM (IBM)
C.)  Exxon-Mobil (XOM)
D.)  eBay (EBAY)
E.)  Wal-Mart (WMT)

Revenue Growth
Wall Street is fascinated with earnings growth, but we sometimes forget that the figure on the bottom line is a direct function of the number on the top. Of the companies below, which posted the strongest compounded annual revenue growth between 2001 and 2006?

A.)  Whole Foods (WFMI)
B.)  Ceradyne (CRDN)
C.)  eBay (EBAY)
D.)  Research in Motion (RIMM)
E.)  Electronic Arts (ERTS)

The +166% Energy Spike
Energy prices have been increasing for some time now. But over the last year, which energy commodity has seen the sharpest increase, spiking +166%? 

A.) Ethanol
B.) Crude oil 
C.) Coal
D.) Natural gas 
E.) Electricity
 

Gains of +50% or More
The downturn in the financial markets has meant that some types of stocks are now trading at fire-sale prices. Which group of stocks could generate gains in excess of +50% if they return to their average five-year earnings multiples?

A.) Tech
B.) Financials
C.) Energy
D.) Restaurants
E.) Retail
 

Africa-Sized Returns
Despite the gloom in the American economy, there are many other countries experiencing unprecedented growth. For instance, which African stock market index is up over +350% over the past five years?

A.) FTSE/JSE Africa Top 40 Index (South Africa)
B.) NSE 20 (Kenya)
C.) MASI Index (Morocco)
D.) Zimbabwe Industrial Index (Zimbabwe)
E.) GSE All-Share Index (Ghana)
 

Returns 48 Times Greater than U.S.
Energy prices have hit many consumers in the pocketbook, but have been a boon to investors in the right markets. Sitting on top of 1 trillion barrels of oil, which country saw its market return more than 48 times the S&P 500 from 1999 to 2007?

A.) Argentina
B.) Brazil
C.) Canada
D.) Denmark
E.) Estonia
 

Opportunity in India
India is one of the hottest markets on the planet -- returning +73% in 2007 alone -- and there is no easier way to gain access to this market than with a solid fund. Based on backtested data, which newly launched, low-cost fund would have returned +1,010% over the last ten years?

A. PowerShares India (PIN)
B. India Fund (IFN)
C. WT India Earnings Fund (EPI)
D. EV Greater India Fund (ETGIX)
E. MS India Investment Fund (IIF)
 

Expense Report
In the investment world, the term "expense ratio" refers to the fee per dollar invested that is paid for the fund's management. The average mutual fund charges an expense ratio of 1.50%, but what is the average expense ratio of an exchange-traded fund (ETF)? (HINT: It would save you 128% versus a mutual fund over 30 years.)

A.  0.43%
B.  0.60%
C.  0.82%
D.  1.21%
E.  1.40%
 

Currency Booster
Many fear the falling dollar, but it can actually help to significantly boost your overseas returns. Which country has seen the value of its stocks soar +518% for local investors since 2003 and an eye-popping +1,203% for U.S. investors -- thanks to the declining dollar?

A.) Australia
B.) France
C.) Columbia
D.) Japan
E.) Brazil
 

Profiting Hand Over Fist
With all the talk of monumental mortgage losses in 2007, it would be easy to assume it was a bad year for corporate earnings, but that wasn't the case for all companies. Which firm made a total annual profit of $40.6 billion ($1,300 per second) in 2007 -- the most ever for a U.S. company?

A.)  Wal-Mart (WMT)
B.)  ExxonMobil (XOM)
C.)  Royal Dutch Shell (RDS-B)
D.)  Microsoft (MSFT)
E.)  ConocoPhilips (COP)
 

Dialing for Dividends
Telecoms generate stable cash flows that enable them to pay enormous dividends to investors, but recent research shows that the yields paid by foreign telecoms are significantly higher than domestic companies. For example, which foreign telecom sports a 9.5% yield and dominates its operating area with a 90% market share?

A.)   China Netcom Group (CN)
B.)   Telesp (TSP)
C.)   Mahanagar Tel. Nigam (MTE)
D.)   Millicom International (MICC)
E.)   KT Corp (KTC)
 

The Value Conundrum
Legendary value investor Bill Miller once noted that the greatest wealth-creating companies don't always trade at textbook value levels. For example, which company may not have appeared cheap at 35 times earnings in 1991 but has since returned around +4,000%?

A.)  Best Buy (BBY)
B.)  McDonalds (MCD)
C.)  IBM (IBM)
D.)  Apple (AAPL)
E.)  Microsoft (MSFT)
 

Market Correlation
In times of market turmoil, investors look for stocks that are least affected by a fall in the broader markets. Of all industry sectors, which has had the lowest correlation to the S&P 500 and returned an average of +25% from 2002 to 2007?

A.)  Consumer Staples
B.)  Airlines
C.)  Oil & Gas
D.)  Waste Management
E.)  Global Telecoms 
 

The Shipping Industry
Surging demand for raw materials in Asia is one of many reasons that shipping firms and shipping expeditors have earned eye-popping triple-digit gains in recent years. Which shipping company's shares rose +1000% from 1997 to 2007?

A.)  Teekay (TK)  
B.)  Diana Shipping (DSX)
C.)  OceanFreight Inc. (OCNF)
D.)  YRC Worldwide Inc. (YRCW)
E.)  Expeditors International of   Washington (EXPD) 
 

Consumer Staples
Consumer staples see constant demand even when the economy takes a dive. After all, people always need shampoo, pet food, and laundry detergent no matter what the economic outlook is. That's why the consumer staples sector thrives even when a recession looms. What were the sector's average gains during the previous three decelerating economic cycles?

A.)  +13%
B.)  +27%
C.)  +48%
D.)  +79%
E.)  +95%
 

Online Retail
Which online retailer has delivered sensational gains of +33.4% annually over the past decade? (Good enough to turn a $10,000 investment into nearly $180,000!)

A.)  Amazon.com (AMZN)
B.)  Buy.com (BUYX)
C.)  Overstock.com (OSTK)
D.)  eBay (EBAY)
E.)  1-800-Flowers.com (FLWS)
 

Short-Squeeze Candidates
Short selling (betting that a stock's price will fall) can be a lucrative strategy -- if you're on the right side of the bet. But when short sellers rush to close out their positions, they have to buy the stock back -- usually resulting in an increase in the stock's price. Which travel stock actually rallied more than +1,000% in 2004 because of short sellers covering their positions?

A.)  Travelzoo (TZOO)    
B.)  Expedia (EXPE)
C.)  Priceline.com (PCLN)
D.)  Orbitz (OWW)
E.)  Allegiant Travel (ALGT)
 

Long-Term Investing
According to equity research firm I.G. Investment Management, investors held a stock for an average of five years in 1975. What is the average holding period today?

A.)  7 Years    
B.)  2 Weeks
C.)  3 Months
D.)  4 Years
E.)  10 Months 
 

Activist Shareholders
By using their large stakes in a company as leverage, activist shareholders can ensure their voices are heard by a firm's management. And by pushing for improvements in a company's operations, these shareholders can become a catalyst to increase a firm's share price. Thanks in large part to shareholder activism, which of these companies enjoyed total returns of over +80% between April 2005 and August 2007?

A.)  McDonald's (MCD)
B.)  Amgen (AMGN)
C.)  Target (TGT)
D.)  Wendy's (WEN)
E.)  Dell (DELL)
 

Asset Allocation
Academic studies have repeatedly shown the biggest factor driving an individual's long-term investment returns is not security selection, but rather overall asset allocation. According to Morningstar, which of the five following asset classes has delivered the strongest gains from August 2002 to August 2007?

A.)  Large-Cap Growth Stocks
B.)  High-Yield "Junk" Bonds
C.)  Small-Cap Value Stocks
D.)  U.S. Government Bonds
E.)  Precious Metals (Dow P.M. Index)  

Dividend Growth
Between July 2002 and July 2007, which of the following five companies delivered the greatest annual dividend growth?

A.)  Harley Davidson (HOG)
B.)  Intel (INTC)
C.)  Mattel (MAT)
D.)  Pepsi Bottling Group (PBG)
E.)  Waste Management (WMI)

Industry Returns
Between July 2002 and July 2007, which of the following five industries delivered the biggest gains for investors?

A.)  Oil & Gas
B.)  REITs
C.)  Gambling/Hotel Casinos
D.)  Online Retail
E.)  Hospitals

Top-Performing Stocks Over 20-Year Period
Over the nearly 20-year time span between July 1990 and July 2007, which of the following stocks delivered the greatest total returns?

A.)  Microsoft (MSFT)
B.)  Home Depot (HD)
C.)  General Electric (GE)
D.)  Eaton Vance (EV)
E.)  Intel (INTC)