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Sonja [21]
1 year ago
6

according to the efficient markets hypothesis, the number of people who think a stock is overvalued exactly balances the number

of people who think a stock is undervalued. a. true b. false
Business
1 answer:
RSB [31]1 year ago
4 0

The given statement is true because according to the Efficient Markets Hypothesis (EMH), the number of people who think a stock is overvalued balances exactly the number of people who think a stock is undervalued.

The Efficient Markets Hypothesis (EMH) is a hypothesis that states when new information enters the market, it is quickly reflected in stock prices and as a result, neither fundamental nor technical analysis can generate excess returns. This means that the prices found in the current market only respond to new information.

According to the EMH hypothesis, there are always an equal number of people in two groups: people in one group consider that stock is undervalued; in contrast, people in the other group assume that stock is overvalued.

You can learn more about Efficient Markets Hypothesis (EMH) at

brainly.com/question/28527156

#SPJ4

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3 years ago
A Caterpillar tractor acquired on January 12 at a cost of $171,000 has an estimated useful life of 25 years. Assuming that it wi
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Answer and Explanation:

a. The computation of depreciation for each of the first two years by the straight-line method is shown below:-

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= (Assets cost - Salvage value) ÷ Useful life

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For Second year = $6,840

It would be the same for the remaining useful life

b. The computation of depreciation for each of the first two years by the double-declining-balance method is shown below:-

First we have to determine the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 25

= 4%

Now the rate is double So, 8%

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And, in year 2, the ($171,000 - $13,680) × 8% = $12,585.60

7 0
4 years ago
Which one of the following should NOT be included in the project analysis of the manufacturing of a new product? A) Change in ne
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Answer:

Option(c) is the correct answer to the given question

Explanation:

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Following are features of project analysis in the new product

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All the other option are related to project analysis of the manufacturing of a new product that's why they are incorrect according to the question .

3 0
3 years ago
Read 2 more answers
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Answer:

d. may be exchanged for equity securities.

Explanation:

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Answer:

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