Answer: all publicly available information(C)
Explanation:
The efficient market hypothesis states that the market can't be beaten because it consists of all vital information into current share prices, thereby stocks trade at values which are fair. The theory consists of three versions which are the weak, semi-strong and the strong form.
The semi-strong form states that the value of a security is based on all publicly available information
because public information is a vital aspect of a stock's current price, and the investors can utilize the fundamental or technical analysis, though available information .
Answer:
116.67%
Explanation:
Note: <em>Complete question is attached as picture below</em>
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Capital Turnover = Sales / Total Assets
Capital Turnover = $7,000,000 / $1,500,000
Capital Turnover = 4.67
Sales Margin = Operating Income / Sales
Sales Margin = $1,750,000/$7,000,000
Sales Margin = 0.25
Sales Margin = 25%
Division Rate of Investment = Capital Turnover * Sales Margin
Division Rate of Investment = 4.67 * 25%
Division Rate of Investment = 116.67%
Answer:
a. The return predicted by CAPM for a portfolio with a beta of 1.4 is 11.88%
b. The alpha of portfolio A is -3.68%
Explanation:
The formula for computing the return by Capital Assets Pricing Method (CAPM) model.
Expected return = Risk Free rate + (Beta × Market Risk Premium)
where,
Market risk premium = market return - risk free rate
Now, putting the values in the above equation
a. Expected return = 0.06 + 1.4 × (0.102 - 0.06)
= 0.06 + 1.4 × 0.042
= 0.06 + 0.0588
= 0.1188
= 11.88 %
Thus, the return predicted by CAPM for a portfolio with a beta of 1.4 is 11.88%.
b. The alpha should be = Portfolio expected return - expected return
= 8.20 - 11.88 %
= -3.68%
Thus, the alpha of portfolio A is -3.68%
Answer:
The correct answer is B
Explanation:
FEMA stands for Federal Emergency Management Agency, it is an agency which is responsible for coordinating the response of the federal government to the disasters which can be manmade or natural.
So, FEMA is responsible for the coordinating the Federal resources which support the Tribal, Local and State efforts when there is Federal emergency is declared.
