Answer: largely efficient
Explanation:
The fact that less than half of all equity fund managers beat the market in most years indicate that the stock market is largely efficient.
According to the strong-form hypothesis of the efficient market, when there is an efficient market, all the private and public information would be reflected in the prices of the stock.
Question:
A disgruntled employee of your major competitor mails top?secret information or new product samples to you. Do you begin to do a dance on your desktop or do you immediately mail the information back to your competitor? What would you do?
a. Throw the plans or secrets away.
b. Send them to your research department for analysis.
c. Notify your competitor about what is going on.
d. Call the FBI.
Answer:
You are to Call the FBI
Explanation:
In this case, where a disgruntled employee of your major competitor mails top-secret information or new product samples to you, the right decision to make acclrding to your company's code and ethics is to contact the security agencies, which in this case is the Federal Bureau of Investigation (FBI). The Federal Bureau of Investigation would make proper investigations and take proper steps to protect your company so they(your company) won't be accused of stealing information from a competitor in time to come.
This is the best way, both ethically and legally to handle this situation.
Answer:
D. 14.25
Explanation:
Data provided as per the question below:-
Marginal Propensity to Save = $87.00
Earnings per share = $6.10
The computation of price earning ratio is shown below-
Price earning ratio = Marginal Propensity to Save ÷ Earnings per share
= $87.00 ÷ $6.10
= 14.25
Therefore for computing, the we simply applied the above formula.
Answer: The correct answer is D) It is a problem caused by agents pursuing their own interests rather than the interests of the principals who hired them.
Explanation: A principal in the context of a business is the owner of the business which in most cases are the shareholders. While the agents are those employed or hired to engage in the day to day activities of the business.
The principal most often aims to maximise shareholders wealth. Principal- agent problem may arise where the agent s of the business put their interests as priority as against the interests of the principal. Such interests of the agents may be to earn bonuses even if it would jeopardize the growth of the organisation.This is an ineffective way of running an organization.
