Answer:
Equal to
Explanation:
Financial theory assumes that financial markets are efficient and that there is no information failure in conducting financial transactions. However, this is an assumption and there could, in some instances, be asymmetric information in the form of adverse selection and moral hazards. For example, if managers of a corporation know how well or how poorly their business is doing than stockholders (as organizational performance determines the price of a security), then there would be an information failure or informational inefficency. Also, a potential investor who cannot distinguish between a firm whose security has a high potential for profit and low risks compared to that with a low potential for profit and high risk will be willing to pay a price that lies between the value of stock from bad firms and the value of stock from good firms. This will not augur well for good firms as their stock is underpriced and they will be reluctant to sell.
When the financial market is efficient, investors of stock would be able to earn supernormal returns on their investments. It is therefore neccessary that the price of a corporation's common stock should be equal to the present value estimate of the firm's expected cash flows discounted by it appropriate rate of return.
Answer:
A put option is out of the money if the strike price is less than the market price of the underlying security. The holder of an option contract can exercise the option at any time before expiration.
Explanation:
hope this helps if not please let me know
Answer:
Not to leave previous job.
Explanation:
- First of all, the question is that what he will lose after leaving the job?
- His earning per year is equal at both sides, still what's the opportunity cost for him?
<em>The answer is simple,</em> he may earn equal but if looked at it in a bigger picture he is losing 401k retirement plan and It is his opportunity cost. He may regret this after leaving the job.
impossible
Explanation:
because the girls are over populated
