Calling All Investors

Even in the grip of a deep recession, sales, profits and cash flows all set new records for this little-known tech company. While revenues advanced +16% last year, earnings rose at three times that pace, climbing +48% to hit $0.71 per share. Which one was it?

A.) NaviSite, Inc. (NAVI)
B.) Agilsys, Inc. (AGYS)
C.) ATS Corporation (ATCT.OB)
D.) Skyworks Solutions (SWKS)
E.) Elron Electronic Industries, Ltd. (ELRN)

Tech Triumph
The pendulum in tech investments has swung from one extreme to another. But which of these ETFs has climbed +37% this year and rebounded about +50% from the 2003 bear market?

A.) iShares S&P Global Technology (IXN)
B.) Goldman Sachs Networking Index Fund (IGN)
C.) PowerShares Dynamic Networking fund (PXQ)
D.) First Trust Dow Jones Internet Index (FDN)
E.) ProShares Ultra Semiconductor (USD)
 

Home and Abroad
India's defense spending is usually pretty low on the list of things that get investors' attention, but which of these American companies is making it one of his top priorities, selling the country $2.1 billion of maritime patrol aircraft?

A.) Acme Corporation (ACME)
B.) Boeing (BA)
C.) General Dynamics (GD)
D.) Motorola (MOT)
E.) Honeywell (HON)
 

Mortgage is a Dirty Word
Anything with "mortgage" in the name has spooked investors during the past year, usually for good reason. But which of these institutions is paying only 1.96% on its liabilities and raking in a yield of 4.27% on its portfolio, all with the support of Uncle Sam, and is yielding a huge 17.1% to investors?  

A.) Wells Fargo (WFC)
B.) Freddie Mac (FRE)
C.) Capstead Mortgage (CMO)
D.) Ameritrans Capital Corporation (AMTC)
E.) Washington Mutual (WAMUQ)
 

Thanks, Uncle Sam
Without question, certain industries have burned investors over the last few years like no other time in history. But which industry index has rebounded more than 90% since diving more than -70% in March of 2009?

A.) BSE Auto Index (BSE-AUTO.BO)
B.) KBW Insurance Index (KIX)
C.) Standard & Poor's 500 Banks Index (S5BANKX:IND)
D.) Standard & Poor's Retail Index (RLX)
E.) Dow Jones U.S. Select Real Estate Securities Index (DWRSF)
 

New Products Equal New Profits
Research and development benefits more than just pharmaceutical companies. For example, which of these companies has belted it out of the ballpark thanks to product development, posting a wild +4,500% increase in stock price over the past decade?

A.) Citigroup (C)
B.) American Airlines (AA)
C.) Dell (DELL)
D.) Hansen (HANS)
E.) E*Trade (ETFC)
 

Reversal of Fortune
Just seven years after receiving the largest IMF bailout on record ($41 billion), which of these countries now has a $12 billion trade surplus and is one of the world's largest economies, offering a bevy of double-digit investment opportunities?

A.) Australia
B.) Brazil
C.) Cambodia
D.) Denmark
E.) Estonia

 

The Lost Decade
Microsoft, Wal-Mart, Berkshire Hathaway--they're some of the most successful stocks of the past two decades. But there are plenty of other big winners that might not be as obvious. For instance, which of these stocks has posted a jaw-dropping +1,700% gain since 2001?

A.) Charter Comms (CHTR)
B.) Biopure (BPUR)
C.) Middlby (MIDD)
D.) Sirius XM Radio (SIRI)
E.) BroadVision (BVSN)
 

Thanks, Uncle Sam
Government spending can be controversial in the investing world, but sometimes it can create unrivaled opportunities for investors. For example, which of these companies has raked in a 56.5% revenue increase since 2006 and a whopping 364.5% increase in profit over the same period, thanks in part to the actions of the U.S. Government?

A.)  McDonald's (MCD)
B.)  Ford Motor Company (F)
C.)  Vestas Wind Systems (VWDRY)
D.)  The Medicines Company (MDCO)
E.)  MGM Mirage (MGM)

Digging a Hole to China
If a fund has "China" somewhere in the name, odds are good that it has screamed to the top of the charts. For example, which of these ETFs has posted annualized gains of +17.4% over the last decade--enough to quintuple a $20,000 investment into nearly $100,000?

A.) iShares FTSE/ Xinhua 25 (FXI)
B.) Claymore/Alpha Shares China Real Estate (TAO)
C.) iShares FTSE Hong Kong Listed China Index Fund (FCHI)
D.) WisdomTree Dreyfus Chinese Yuan Fund (CYB)
E.) Templeton Dragon (TDF)

Get Your Motor Running
Investors are avoiding the battered auto industry like the plague these days, what with the bailouts, complicated cost structures, and imminent bankruptcies rippling through the industry. But not all car makers are under water. Which of these manufacturers has posted 25% annual revenue increases from 2003 to 2007 and even sports a dividend that has risen significantly since it first began in 2006?

A.) Daimler AG (DAI)
B.) Tata Motors (TTM)
C.) Honda Motor Co. (HMC)
D.) Zap (ZAAP.OB)
E.) Chicago Rivet & Machine Co. (CVR)

And Now for Some Good News
Which of these companies just hiked its latest distribution, has returned +43% so far this year, has zero debt, and is sitting on a pile of cash--and sports a juicy double-digit yield of 10.5%?

A.) Terra Nitrogen (TNH)
B.) Heritage Commerce Corp. (HTBK)
C.) Layne Christensen Co. (LAYN)
D.) Starbucks (SBUX)
E.) Panera Bread (PNRA)

Finding Treasure Island
In ordinary market conditions, it's nearly impossible to find attractive companies whose net cash exceeds market cap. That money would act as a floor, and the negative enterprise value could entice arbitrageurs to step in and collect a quick profit. But in this market, the usual rules don't apply. Leveraged buyouts and other mergers and acquisition activity has dried up because of the lack of financing -- leaving deals for the rest of us that would usually be off the table by now. For instance, which of these firms has 45 million outstanding shares worth a total of $135 million even though the firm has accumulated a cash stockpile (net of a trivial amount of debt) in excess of $230 million?

A.)  Genentech (DNA)
B.)  Palm (PALM)
C.)  General Motors (GM)
D.)  MGM Mirage (MGM)
E.)  Nam Tai Electronics (NTE)

Up When They're Down
Record yield spreads have already begun to narrow, and some bonds and bond funds have produced impressive equity-like returns in recent months. For example, which of these closed-end bond funds is up close to +50% since October and sports a yield close to 20%?

A.)  BlackRock Corporate High Yield Fund (COY)
B.)  Helios Select Intermediate Fund (HSICX)
C.)  John Hancock Government Income A (JHGIX)
D.)  Thrivent Core Bond A (AAINX)
E.)  Van Kampen Limited Duration A (ACFMX)
 

Ratio rationale
The market downturn has beaten down asset values, and funds that are saddled with debt are at risk of violating certain ratio requirements, particularly one in Section 18 of the Investment Company Act of 1940. Under the legislation how much in assets should a fund have for each $1 of preferred stock issued, and how much in assets should a fund have for each $1 of bank debt?

A.) $2 and $3, respectively
B.) $1 and $1, respectively
C.) $2 and $2, respectively
D.) $3 and $3, respectively
E.) $4 and $3, respectively

Raising the Bar
According to Bloomberg, profit forecasts have shrunk across the board for every industry. There are now more than 3,500 companies whose 2009 EPS estimates are lower today than they were 90 days ago. But which of these companies is actually raising its earnings estimates from $3.49 per share in 2009 to $3.80, with some of the more optimistic projections even calling for $4.00?

A.) Apollo Group (APOL)
B.) General Motors (GM)
C.) Home Depot (HD)
D.) Philip Morris (PM)
E.) Starwood Hotels (HOT)

A Falling Dollar Can Mean Big Dividend Growth
A falling dollar is good news for U.S. investors who own foreign securities, but you don't necessarily have to look beyond America's borders to find opportunities. For instance, which of these commodities producers has taken advantage of the lower dollar and increased its quarterly dividend +44% in only three years?

A.) Endeavour Silver Corp (EXK)
B.) Intrepid Potash Inc. (IPI)
C.) New Gold Inc. (NGD)
D.) Royal Dutch Shell (RDS-A)
E.) Bunge Ltd. (BG)

Triple-Digit Yield Growers
Like the rest of the market, income securities have taken a big hit, leaving many investors scrambling for higher yields. But not everything has been decimated. Which of these securities groups has witnessed a +151% increase in dividend yields between 2007 and 2008?

A.)  TIGRs
B.)  Preferred stocks
C.)  General partnerships
D.)  TIPs
E.)  Utility stocks

The Upside of Down
History shows that conservative sectors and industries often hold up better than the broader market during sell-offs. But if share prices in those industries do get dragged down with the rest of the market, this makes a rare opportunity to lock in sizeable -- and stable -- yields. For instance, which of these conservative closed-end funds currently sports a whopping 18.8% yield after investors indiscriminately sold off shares?

A.)  Macquarie/First Trust Global Infrastructure/Utility Dividend & Income (MFD)
B.)  Hyperion Total Return Fund (HTR)
C.)  BlackRock Enhanced Dividend Achievers (BDJ)
D.)  Morgan Stanley China A Share Fund (CAF)
E.)  Reeves Utility Income Trust (UTG)

The World's Strongest Banks
Which country's banks were rated the strongest in the world in November 2008 by the World Economic Forum?

A.)  Aruba
B.)  Brazil
C.)  Canada
D.)  Denmark
E.)  England
 

Keeping the Lights On
Which of these utilities operates in a region where electricity demand is growing by over +25% per year and is currently offering a hefty 10.7% dividend yield?

A.)  Southern Co. (SO)
B.)  Hawaiian Electric (HE)
C.)  CPFL Energia (CPL)
D.)  Huaneng Power (HNP)
E.)  Scottish Power PLC (SPI)
 

The Inside Track
Nobody knows the inner workings of a company better than the people who run it. And when they buy stock in their own company, it's because they expect it to go up. And they're usually right. When stocks have been aggressively bought by insiders, how much do they outperform the market?

A.)  +2.5%
B.)  +4.7%
C.)  +5.6%
D.)  +7.8%
E.)  +8.9%

What is Buffett Buying and Why?
While most investors have been sidelined by uncertainty, legendary investor Warren Buffett has been on a buying spree -- pouring $8 billion into new investments in the last few weeks alone. But instead of the common stocks he normally buys, the "Oracle of Omaha" picked the perfect investment for these risky times. What has Warren Buffett been buying?

A.)  6-month CDs
B.)  10-year "AAA" bonds
C.)  Preferred stocks
D.)  5-year "AAA" bonds
E.)  3-month Treasuries
 

+200% Returns from Africa
While many investors know emerging markets have generated strong investment returns over the past decade, they often overlook the promising opportunities in Africa. Which African stock market has been one of the best performing, generating more than a +200% return over the last five years alone?

A.)  Angola
B.)  Mali
C.)  Cameroon
D.)  Tanzania
E.)  Nigeria 

A New Fund Shows Gains of +180%
Which new exchange-traded fund (ETF) tracks an index that has delivered an impressive annualized return of +23% over the past five years, for a cumulative return of +180%?

A.)  SPDR Metals & Mining (XME)
B.)  SPDR International Industrial Sector (IPN)
C.)  Market Vectors Coal (KOL)
D.)  Market Vectors Gaming (BJK)
E.)  Vanguard Growth (VUG)

15.9% Fund Yield
Financial stocks make up 50% or more of many equity-income fund portfolios, but can also increase risk. Which of these funds devotes less than 20% to the financial sector --and still provides a hefty 15.9% yield to boot?

A.)  Alpine Global Dividend (AGD)
B.)  Kayne Anderson Energy Total Return (KYE)
C.)  Vanguard Dividend Appreciation (VIG)
D.)  WisdomTree Europe Dividend (DEB)
E.)  First Trust Value Line Dividend (FVD)
 

It Pays to Stay Calm
The market is bearish and some investors are in panic mode. The last time the market traded in bear-market territory was between March 2000 and February 2002. But how much have savvy investors made after picking up stocks like Research In Motion (RIMM) and Apple (AAPL) at bargain prices?

A.)  Between +50% and +75%
B.)  Between +150% and +250%
C.)  Between +500% and +750%
D.)  Between +1000% and +3500%
E.)  Between +4000% and +6000%

Lighting Up the World
Utility companies in the U.S. are known for their slow growth, but that's not necessarily true in the rest of the world. Which of the following foreign utilities has grown revenues at an astounding rate of +25% over the last five years?

A.)  Transportadora de Gas Del Sur S.A. (TGS)
B.)  Korea Electric Power (KEP)
C.)  Empresa National Electric (EOC)
D.)  Huaneng Power (HNP)
E.)  Enersis S.A. (ENI)

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

Oracle Picks

Last October, during the market's darkest days of fear and uncertainty, Warren Buffett sent a bullish op-ed piece to the New York Times offering reassuring comments that helped quell anxiety far more than any government intervention. Of course, Buffett was putting his money where his mouth was. Ever the opportunist, he took advantage of the panic-driven sell-off by putting Berkshire Hathaway's mountainous cash stockpile to work. And with a limitless array of investment options, what was at the very top of his shopping list?

A.) Preferred stocks
B.) Junk bonds
C.) Treasurys
D.) Investment-grade bonds
E.) TIGRs

 

Everybody knows that outsourcing IT services to India has helped many American companies buoy profits, but which of these companies has actually boosted sales +50% by keeping an army of local reps available in the United States to personally answer questions and fulfill certain tasks for American customers?

A.) ATA Inc. (ATAI)
B.) Intrepid Potash (IPI)
C.) Cognizant Technology Solutions (CTSH)
D.) VanceInfo Tech (VIT)
E.) Linear Technology (LLTC)
 

On Fire

Energy prices go up, and energy prices go down, but which of these energy sectors has seen share prices double or even triple off last year's lows and still offers yields of up to 10%?

A.) Propane
B.) Natural Gas
C.) Diesel Fuel
D.) Gasoline
E.) Wind
 

Mighty Oaks
Most income-seeking investors spend little time hunting for small stocks, preferring their stocks to be full-grown. But promising small-cap firms are like tiny acorns that will one day become towering oaks, and overlooking smaller companies can be costly. For instance, which one of these small-caps would have turned a $25,000 investment into a cool $1 million in just 10 years? 

A.) Otter Tail (OTTR)
B.) Fannie Mae (FNM)
C.) KeyCorp (KEY)
D.) Interpublic Group (IPG)
E.) Dillard's (DDS)
 

A Little Goes a Long Way
The recession has prompted companies to implement cost-cutting measures -- sometimes drastic measures -- to survive. Though that makes for tough times, cutting out the fat also sets many companies up for incredible profits as the economy recovers. For example, which of these companies has grown revenues by +25% in 2009 but, thanks to cost controls, has seen its operating margins explode 580 basis points to 36%?

A.) Plantronics (PLT)
B.) ITT Educational Services (ESI)
C.) Banta Corp. (BN)
D.) MGM Mirage (MGG)
E.) Peace Arch Entertainment (PAE)

 

The Best of Both Worlds
Which of these asset classes has trounced the +11% return of the S&P 500, shining with a robust +21% gain in the first half of 2009?

A.) REITs
B.) Convertible Bonds
C.) Blue Chip Stocks
D.) Treasurys
E.) Commercial Paper
 

Health Care Reform
Which of these health care companies delivered an annualized +24.5%, about twice the average historical return of the S&P, in the past 10 years, and is poised to add billions more to its bottom line if Washington moves more people onto private insurance?

A.) Continucare CP (CNU)
B.) Neostem Inc. (NBS)
C.) Mednax (MD)
D.) DaVita (DVA)
E.) MDS Inc. (MDZ)
 

Driving Home a Bargain
Which one of these car stocks is actually a winner in the industry, offering a 9.7% yield and 50.5% year-to-date returns?

A.) Ford Motor Co. Capital Trust II   Cumulative Conv. Trust Preferred (F-S)
B.) General Motors Series G Preferred (GM-G)
C.) Hilltop Holdings Preferred Series A (HTH-PA)
D.) DaimlerChrysler 7.25% Trust Preferred Stock (PYO)
E.) Mills Corp Preferred Series F (MLSFO.PK)
 

Boldly Go Where No Income Investor Has Gone Before
Tech stocks don't fit the typical income investor's profile. But which of these instruments allow investors to lock in double-digit yields of 10%, 11%, or 12% and also participate in the tech rally?

A.) TIPS
B.) TIGRs
C.) SPDRs
D.) STRIDES
E.) ADRs

 

The Hunt for the Safest Dividend
Both Wall Street and Main Street are looking for something they can be sure of in the year ahead. And for income investors, that means finding a safe and rewarding dividend yield. So which of these companies has StreetAuthority editor Carla Pasternak determined to have one of the safest dividends in the market?

A.) Verizon (VZ)
B.) American Capital (ACAS)
C.) Gannett Co. (GCI)
D.) Archer Daniels Midland (ADM)
E.) Fifth Third Bancorp (FITB)
 

Green Shoots
Investors are looking for some "green shoots" after a long winter of discontent. So which of these instruments are up a remarkable +46% for the year through mid-April?

A.) Convertible bonds
B.) Treasurys
C.) Preferred stock
D.) Blue chip stocks
E.) TIPs
 

A Financial Booster Shot
As governments around the world scramble to ensure there are adequate supplies of antiviral medications, all of them wish they had a vaccine to better protect their populations. Currently there is no vaccine for things like swine flu, but which of these antiviral-medication manufacturers has an effective treatment for H1N1 as well as long-term prospects for income-oriented investors?

A.) GlaxoSmithKline (GSK)
B.) Johnson and Johnson (JNJ)
C.) Chem Rx Corp. (CHRXE.OB)
D.) Inhibition Therapeutic (IHBT.OB)
E.) GeoPharma, Inc. (GORX)
 

Investing with the Stars
There is no definitive "A-list" roster of superstar value investors. But if there were, you'd undoubtedly see names such as Warren Buffett, Bruce Berkowitz, Bill Nygren, Charlie Dreifus, and Mario Gabelli. But there are lots of other starts in the sky. For example, which of these fund managers has delivered a cumulative +150% gain since the inception of his fund 9 years ago, compared to a -28% return for the S&P 500?

A.) Abe Froman
B.) Bruce Berkowitz
C.) Steven Cohen
D.) David Tepper
E.) Edward Lampert

Star Performers
Some types of stocks don't just beat the S&P 500 in down markets -- they bludgeon the S&P 500. For example, over the long-term, which class of stock tends to outperform the broader market average by +17% in the year following major market bottoms?

A.) Large-cap value stocks
B.) Small-cap value stocks
C.) Small-cap growth stocks
D.) Blue chip stocks
E.) Tech stocks

Nuts for Brazil
The so-called BRIC emerging markets -- Brazil, Russia, India and China -- have driven more than their share of the world's economic growth over the past five years but are either slowing or slumping now. But there are still some amazing winners out there. For example, which of these Brazilian companies recently reported a +12% increase in earnings and a +23.6% increase new customers?

A.)  Gerdau (GGB)
B.)  Aracruz Celulose (ARA)
C.)  Telesp (TSP)
D.)  Braskem (BAK)
E.)  Gafisa (GFA)

Cashing In
Despite the terrible economy, which of these MLP-focused ETFs is throwing off about $1,110 in annual income on a $10,000 investment — about +50% more than the $730 you would have been getting on an annualized basis last summer?

A.) Tortoise Energy (TYG)
B.) Fiduciary/Claymore MLP Opportunity Fund (FMO)
C.) BearLinx Alerian MLP Select Index (BSR)
D.) Kayne Anderson Energy TR (KYE)
E.) Cushing MLP Total Return  Fund (SRV)
 

Pick-Up Game
India has some important lessons to teach about sector formation in emerging economies. For example, as an emerging market grows, which of these industries is one of the first to develop?
 
A.) Aerospace
B.) Banking
C.) Restaurants
D.) Advertising
E.) Media

Not All Retailers Got Hammered in 2008
According to the U.S. Commerce Department, the fourth quarter of 2008 marked the worst retail shopping season since at least the 1970s. But few would guess that the best performer in the Dow last year was actually a retailer. Who was it?

A.) Big Lots (BIG)
B.) Wal-Mart Stores (WMT)
C.) TJX Companies (TJX)
D.) Williams-Sonoma (WSM)
E.) Limited Brands (LTD)

Outperforming the Market
Nearly everything in the investing universe was hit hard by the market in 2008, but some sectors still managed to maintain their enviable track records. For example, which of these iShares funds tracks an index that has shown impressive annualized gains of +11.4% over the past five years, versus an annual loss of -2.2% for the S&P 500?

A.)  iShares S&P Global Utilities (JXI)
B.)  iShares S&P Global Financials     (IXG)
C.)  iShares S&P North American          Technology (IGW)
D.)  iShares MSCI Belgium Investable (EWK)
E.)  iShares Dow Jones U.S. Consumer Goods Sector (IYK)

A Triple-Digit Trend
Which of these electronics companies has surged +116% in just one year and, despite the current economic instability, has posted five consecutive triple-digit quarterly sales increases since the end of 2007?

A.)  Sigma Designs (SIGM)
B.)  Avid Technology (AVID)
C.)  Thomson ADS (TMS)
D.)  Harman International (HAR)
E.)  Hubbell (HUB-B)

Follow the Yellow Brick Road
Which of these companies makes about a $500 margin on every ounce of gold it sells, giving it a better cost structure than 80% of firms in the industry?

A.)  Newmont Mining (NEM)
B.)  Barrick Gold (ABX)
C.)  Goldcorp Inc. (GG)
D.)  Kinross Gold CP (KGC)
E.)  AngloGold Ashanti (AU)

Utility Outperformer
Which utility ETF has beaten 99% of its peers in the utility category over the past three years and is currently trading at a double-digit discount?

A.)  DNP Sel. Income Fund Inc. (DNP)
B.)  UltraSort Util. ProShares (SDP)
C.)  WisdomTree International Utilities Sector Fund (DBU)
D.)  First Investors Value Fund (FIUTX)
E.)  Gabelli Global Utility & Income Trust (GLU)

October's Biggest Victim
October was a bad month for almost every investment. But which asset class suffered its worst month in October 2008 since 1956?

A.)  Commodities
B.)  Bonds
C.)  Stocks
D.)  Treasurys
E.)  Real Estate

A Dividend Grower Bucks the Trend
Cash may be hard to come by for nearly everyone these days, but there are still companies producing loads of cash -- and giving it to shareholders. Which of these companies recently announced a nearly +1,000% dividend increase even as the economy is slowing?

A.)  AK Steel (AKS)
B.)  Bank of America (BAC)
C.)  CenturyTel (CTL)
D.)  Caraustar Industries (CSAR)
E.)  Norfolk Southern (NSC)
 

Riding High in a Down Market
With some of the most dramatic sell-offs in stock market history -- reducing the S&P 500 by more than -25% since the beginning of September alone -- it's hard to imagine that any stock could be doing well right now. But which of these stocks hit a 52-week high amid the turmoil?

A.)  Treehouse Foods (THS)
B.)  Adams Golf, Inc. (ADGF)
C.)  Papa John's International (PZZA)
D.)  Ditech Networks, Inc. (DITC)
E.)  WebMD Health Corp. (WBMD)
 

A New Take on Liquidity
Which of the following funds tracks an index that has pumped a cumulative five-year gain of +204% by investing in water-based stocks?

A.)  SPDR FTSE Macquarie Infrastructure 100 (GII)
B.)  PowerShares Global Water Portfolio (PIO)
C.)  Claymore S&P Global Water Index ETF (CGW)
D.)  PFW Water Fund (PFWAX)
E.)  SAM Sustainable Water Fund (SMWNX)

The Biotech Stock that Delivered Gains of +9,000%
Investors have their pick of more than 500 publicly listed biotech companies, but many of those have no earnings, are bleeding cash and stand little chance of making real money for shareholders. However, which of these biotech stocks has bucked the trend and delivered an eye-popping gain of more than +9,000% in the last 10 years?

A.)  Celgene (CELG)
B.)  Biogen (BIIB)
C.)  BioMarin (BMRN)
D.)  Genzyme (GENZ)
E.)  PDL Biopharma (PDLI)
 

Frontier Gains of More than +200%
Many investors have never heard of this tiny little country of just 2 million people, but it's a nation of extraordinary natural resource wealth -- and its stock market is up more than +200% since the S&P hit its high on October 11, 2007. Which country is it?

A.)  Bhutan
B.)  Grenada
C.)  Mauritius
D.)  Seychelles
E.)  Namibia

+127.8% Gains and 11.9% Yields
Which country's market index has gained an astonishing +127.8% in the past five years and has an average dividend yield that is more than twice what economic powerhouse China has to offer?

A.)  Israel
B.)  United States
C.)  Australia
D.)  India
E.)  Morocco
 

Havin' Fun with Funds
Financial stocks make up 50% or more of many equity-income fund portfolios. Which of these funds devotes less than 20% to the financial sector -- and still provides a hefty 15.9% yield to boot?

A.)  Alpine Global Dividend (AGD)
B.)  Kayne Anderson Energy Total Return (KYE)
C.)  Vanguard Dividend Appreciation (VIG)
D.)  WisdomTree Europe Dividend (DEB)
E.)  First Trust Value Line Dividend (FVD)

Cashing in on Bond Funds
There are lots of metrics for evaluating an income fund, but the single most important is how much cash it puts in your pocket. In the past year, which of these funds had the highest double-digit total return, and currently offers a yield of 9.3%?

A.)  Janus High-Yield Bond Fund (JAHYX)
B.)  MFS International Income Trust (MIN)
C.)  Eaton Vance Income Fund (EVIBX)
D.)  Baird Aggregate Bond Fund (BAGSX)
E.)  JPMorgan Core Bond Fund (PGBOX)

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)