All categories

2 years ago

Current market prices reflect all relevant information, whether it is known publicly or privately. True or false?.

Business

1 answer:

likoan [24]2 years ago

3 0

<u>True.</u> Current market prices reflect all relevant information, whether it is known publicly or privately.

<h3><u>What does strong-form efficiency mean?</u></h3>

Strong form efficiency is the strictest interpretation of the efficient market hypothesis (EMH) investment theory, which claims that a stock's price takes into account all available information, whether it is public or private. Strong form efficiency advocates contend that even access to insider information cannot benefit an investment.

No matter how much study or information investors have access to, this level of market efficiency indicates that profits above typical returns cannot be realized. The majority of instances of strong form efficiency involve insider knowledge. This is due to the fact that the EMH's strong form efficiency is the sole component that incorporates confidential information.

Contrary to popular opinion, the idea contends, that possessing inside information won't help an investor achieve large market returns.

Learn more about the efficient market hypothesis (EMH) with the help of the given link:

brainly.com/question/20709287

#SPJ4

You might be interested in

Lydia works at a medical facility in which all employees are required to wear white shoes. lydia does not agree with this rule.

Juli2301 [7.4K]

Lydia could take lots of people's signatures that agrees with her. is there even a medically reason why they have to wear white shoes?

8 0

4 years ago

Terryville Corporation plans to sell 48,000 units of its single product in March. The company has 3,500 units in its March 1 fin

murzikaleks [220]

Answer:

Terryville plans to produce 47,600 units in March.

Explanation:

First of all, let us lay out the information given clearly:

Projected sales = 48,000 units

Inventory (March 1) = 3,500 units

Inventory (march 31) = 3,100 units.

From the above information, the total units to be produced can be calculated by adding the total projected sales to the ending inventory as follows:

Total projected units to be produced = projected sales + ending inventory

= 48,000 + 3,100 = 51,100 units

However, we are told that the inventory at the beginning of the month of March is 3,500, therefore of the total amounts to be produced, 3,500 units is already available, hence to get the new amount to be produced we will subtract the beginning inventory from the total units planned to be produced.

Total units to be produced = 51,100 - 3,500 = 47,600 units.

8 0

4 years ago

Problem 3 Suppose that the risk-free interest rate is 10% per annum with continuous compounding and that the dividend yield on a

Flura [38]

Answer:

Please see explanation

Explanation:

To answer the given question, first we will calculate the theoretical future price which shall be determined using continuous compounding formula as follows:

Theoretical future price=400*e^(10%-4%)*4/12

=$408.08

The actual future price of a contract deliverable in 4 months is only $405 which means that the index future price is too low in relation to the index.

The suitable arbitrage strategy shall be:

1. to purchase the future contracts

2.Short sale the shares which are underlying the index

7 0

3 years ago

What caused the U.S. Congress, the OECD, the International Federation of Accountants, and other organizations to enact stricter

arlik [135]

Answer: The correct answer is "B. High-profile corporate scandals".

Explanation: High-profile corporate scandals caused the U.S Congress, the OECD, the International Federation of Accountants, and other organizations to enact stricter rules on corporate governance in recent years.

7 0

3 years ago

The type of business risk that refers to a possible risk from a business move is called

zaharov [31]

Pretty sure it’s financial risk !!!!! hope it was right !!!! :)

8 0

3 years ago