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Kruka [31]
1 year ago
15

The financial market history shows that the single-index capm fails empirical tests because ____________..

Business
1 answer:
Pachacha [2.7K]1 year ago
7 0

The financial market history shows that too many securities have statistically significant values.

All zeros that occur among any non-0 digits are significant. as an instance, 108.0097 consists of seven significant digits. All zeros which are on the right of a decimal point and added to the left of a non-zero digit are in no way significant. for example, zero.00798 contained three substantial digits.

The CAPM takes into consideration systematic threat (beta), which is neglected by other go-back fashions, such as the dividend bargain model (DDM). Systematic or market threat is an essential variable due to the fact it is unexpected and, for that reason, frequently can not be absolutely mitigated.

The intention of the CAPM formula is to evaluate whether a stock in all fairness is valued while its chance and the time cost of cash are as compared with its anticipated return. In other phrases, it's far viable, via understanding the personal parts of the CAPM, to gauge whether the present-day price of an inventory is consistent with its possibly go back.

Learn more about significant values here"brainly.com/question/24491627

#SPJ4

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Theoretically high taxes slow the economy because
Vlad1618 [11]

High taxes in theory would slow the economy because they redirect money from the private sector to the government and reduce consumption.

<h3>How do high taxes slow the economy?</h3>

The economy grows when the private sector produces more and grows. High taxes will take money from this sector which would leave less cash for growth investment.

High taxes also reduce the amount that people have for consumption which would reduce Aggregate demand.

Find out more on Aggregate Demand at brainly.com/question/1490249.

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3 0
3 years ago
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elena-s [515]
The rest of it will be: price equals marginal cost. But this indeed is not true. The most accepted idea is that for a monopolistically competitive firm the average revenue and price are the same quantity. Now, when a monopolistically competitive firm is in long-run equilibrium, then the marginal revenue is equal to marginal cost. 
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2 years ago
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c)

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