Answer:
D) Stock prices of companies that announce increased earning in January tend to outperform the market in February.
Explanation:
The above is consistent with the Efficient Market Hypothesis. All others are a direct contravention.
<em>The efficient market hypothesis (EMH), also known as the efficient market theory, is a hypothesis that states that the prices of shares contain all information and that consistent alpha generation is impossible.</em>
According to the hypothesis, stocks always trade at their fair value on exchanges, making it impossible for investors to purchase undervalued stocks or sell stocks for inflated prices.
This means that it should not be possible to outperform the overall market through professional stock selection or market timing.
The only way according to EMH that an investor can obtain better returns is by purchasing riskier investments.
By implication, this also means that it is not possible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information.
You would note that in the option D, earning (which is a key driver for demand of stock) is announced in one month. The natural reaction would be for the demand for that stock to surge in the next month.
Answer:
If a nonprofit agency sets up a website to channel investments from all over the globe into microloans to support local farms, it will improve local productivity, hence more resources are consumed locally and also reduce international shipping.
According to equity theory, employees tend to experience anger or frustration when they perceive being<u> </u><u>under-rewarded</u>.
Fairness theory is an idea of motivation that suggests that employee motivation at paintings is driven in large part by their feel of equity. Employees create an intellectual ledger of the inputs and consequences of their activity after which use this ledger to evaluate the ratio of their inputs and outputs to others.
The equity idea focuses on figuring out whether or not the distribution of sources is honest to each relational companion. equity is measured by way of evaluating the ratio of contributions and benefits for everybody.
The fairness principle is in play when people say such things as: “Andy earns more than I do, but doesn't do almost as a lot of work!” “I am getting paid a lot much less than Andy, but this region would disintegrate without me!”
Learn more about equity theory here brainly.com/question/14639287
#SPJ4
Answer:
The correct answer is (B)
Explanation:
The correct answer is (B)
Because, According to Mancur Olson's theory of dictatorships in poor countries, stable dictatorships cause less economic harm than unstable dictatorship
Answer:
Calendar-Year Firm
The firm’s maximum 2012 deduction for depreciation is:
= $917.
Explanation:
a) Data and Calculations:
Purchase of a used computer server on May 11, 2012 = $6,000
Since the server is a used one, we assume a four-year useful life
Salvage value = $500
Assumed useful life = 4 years
Depreciable amount = $5,500 ($6,000 - $500)
Since the firm does not take the Section 179 Deduction, which would have allowed it to expense the whole depreciable amount this 2012, the depreciation expense for the first year is calculated as follows:
Annual depreciation expense, using the straight-line method = $1,375
For 2012, the firm's maximum deduction for depreciation will be:
= $917 ($1,375 * 8/12) (covering the months from May 11 to December 31)
