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Ivahew [28]
1 year ago
13

If you beat the market with inside information, you have violated the concept of ___ form efficiency.

Business
1 answer:
Sergio039 [100]1 year ago
7 0

If you beat the market with inside information, you have violated the concept of strong form efficiency.

Strong form efficiency refers to a market in which stock prices fully and fairly reflect not only all public and all historical information but also all private information (inside information).

Strong Form Efficiency is the most rigorous version of EMH (Efficient Market Hypothesis) investment theory, stating that all market information, public or private, is factored into stock prices.

A stronger version of the Efficient Markets Hypothesis states that all published and unpublished information is fully reflected in the current stock price and that there is no information available to investors. . market advantage.

Learn more about strong form efficiency here: brainly.com/question/13405657

#SPJ4

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Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $3.00 next year. The growth rate in dividends for all thre
fiasKO [112]

Answer:

Red Inc stock price=$93.75

Yellow Corp stock price=$44.78

Blue company=$36.14

Explanation:

Calculation for What is the stock price

Using this formula

Stock price=D1/(Required return-Growth rate)

Let plug in the formula

Red Inc stock price=3.00/(0.092-0.06)

Red Inc stock price=3.00/0.032

Red Inc stock price=$93.75

Yellow Corp stock price=3.00/(0.127-0.06)

Yellow Corp stock price=3.00/0.067

Yellow Corp stock price=$44.78

Blue company =3.00/(0.143-0.06)

Blue company=3.00/0.083

Blue company=$36.14

6 0
2 years ago
4. explain the main advantage of retained profits as a source of finance
Rom4ik [11]

Answer:

The classic explanation of the advantages of high retained profit is that they: increase stock value. assure corporate stability. provide funds for research and expansion without increasing corporate debt.The portion of profits not distributed among the shareholders but retained and used in business is called retained earnings. It is also referred to as ploughing back of profit. This is one of the important sources of internal financing used for fixed as well as working capital.

5 0
2 years ago
North Side Wholesalers has sales of $948,000. The cost of goods sold is equal to 68 percent of sales. The firm has an average in
Masteriza [31]

Answer:

13 days

Explanation:

We are to calculate the days of inventory on hand.

Days of inventory on hand = number of days in a period/ inventory turnover

Inventory turnover = Cost of goods sold / average inventory

Cost of goods sold = 0.68 x $948,000 = $644,640

Inventory turnover = $644,640 / $23,000 = 28.027826

Days of inventory on hand = 365 / 28.027826 = 13.02 days

I hope my answer helps you

5 0
3 years ago
Your investment has a 20% chance of earning a 30% rate of return, a 50% chance of earning a 10% rate of return, and a 30% chance
stellarik [79]

Answer:

9.2%

Explanation:

expected return of the investment = potential return x chance of each return happening

Expected return of the investment:

  • 20% chance of occurring x 30% potential return = 0.2 x 30% = 6%
  • 50% chance of occurring x 10% potential return = 0.5 x 10% = 5%
  • 30% chance of occurring x -6% potential return = 0.3 x -6% = -1.8%
  • total expected return = 9.2%
6 0
3 years ago
Leslie hypothesizes that teenagers who read magazines develop low self-esteem because of the unrealistic expectations set by the
alexdok [17]
<span>group that has unrealistic expectations and therefore the group with the lowest self-esteem on the confidence scale administered by Leslie</span>
6 0
3 years ago
Read 2 more answers
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