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IrinaVladis [17]

3 years ago

14

A high efficiency rating indicates that the sample information is almost as good as perfect information. Group of answer choices

True False

1 answer:

STatiana [176]3 years ago

5 0

Answer:

True

Explanation:

The higher is the rating of the sample the more is the efficiency of the sample and its performance is measured by the good sample of information as the perfect information and indicates the effectiveness of the sample.

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Assume that the CAPM holds. One stock has an expected return of 8% and a beta of 0.5. Another stock has an expected return of 13

Zolol [24]

Answer:

10.5%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

For one stock

8% = Risk-free rate of return + 0.5 × (Market rate of return - Risk-free rate of return)

8% = Risk-free rate of return + 0.5 × Market rate of return - 0.5 × Risk-free rate of return

8% = 0.5 × Risk-free rate of return + 0.5 × Market rate of return

8% ÷ 0.5 = Risk-free rate of return + Market rate of return

So, Risk-free rate of return + Market rate of return = 16

Risk-free rate of return = 16 - Market rate of return - 1

For another stock

13% = Risk-free rate of return + 1.5 × (Market rate of return - Risk-free rate of return)

13% = Risk-free rate of return + 1.5 × Market rate of return - 1.5 × Risk-free rate of return

13% = - 0.5 × Risk-free rate of return + 1.5 × Market rate of return - 2

Now put these equations together

13% = - 0.5 × (16 - Market rate of return) + 1.5 × Market rate of return

13% = - 8 + 0.5 × Market rate of return + 1.5 × Market rate of return

So, Market rate of return would be

= 21 ÷ 2

= 10.5%

4 0

3 years ago

What is an element of management activity in business?

solniwko [45]

PublicityProduction and manufacturing is another element of management. Management involves coordinating employees' actions to achieve the firm's goals, organizing people to work efficiently, and motivating them to achieve the business's goals.

8 0

3 years ago

If aggregate demand shifts left, then in the short run a. the price level rises and real GDP falls. b. the price level falls and

UkoKoshka [18]

Answer:

the correct answer is

The price and the real GDP both fall

3 0

3 years ago

In an efficient market:

dem82 [27]

Answer:

The answer is E.

Explanation:

Market efficiency is the degree to which market prices shows all available and relevant information at the same time. And market react react quickly to new information.

If markets are efficient, then all information is already incorporated into prices and possiblity of beating the market is eliminated. In this market, there are no undervalued or overvalued securities available. So an efficient market should also able to earn the appropriate risk-adjusted rate of return

6 0

4 years ago

The second-price auction model

Maurinko [17]

Answer:

The correct answer is the option B: charges the highest bidder only a penny more than the bid of the second-highest bidder.

Explanation:

To begin with, the model of <em>''the second-price auction''</em> is a non-truthful auction mechanism in which every bidder places a bid but with the little particularity that the one who has the highest bid, and therefore the one who gets the first slot, only pays the price bid by the second highest bidder, and this last one only pays the price bid by the third highest bidder and so on. Therefore that this auction mechanism is non-truthful because the bidder does not pay the price he said he would, but he pays the price bid by the other person.

8 0

4 years ago