Answer: Option D
Explanation: Strong form efficiency is the most stringent form of market efficiency. This hypothesis states that the securities in the market reflects all the information in their price whether public or private.
Therefore, any investor would not be able to earn abnormal returns no matter how much research he or she has done. As the securities reflects private information also, therefore, insider trading will also be useless.
Hence from the above we can conclude that the correct option is D.
Answer:
product departmentalization.
Explanation:
product departmentalization is the internal process performed by a corporation of dividing its business activities up according to the type of goods or services produced. Product departmentalization typically groups tasks related to a particular product or product line under one senior manager who specializes in that aspect of the company's business.
Answer:
customer relationship process
Explanation:
customer relationship process. a process that identifies, attracts, and builds relationships with external customers, and facilitates the placement of orders by customers, sometimes referred to as customer relationship management.
Available Options Are:
A. Become riskier over time, but its intrinsic value will be maximized.
B. Become less risky over time, and this will maximize its intrinsic value.
C. Accept too many low-risk projects and too few high-risk projects.
D. Become more risky and also have an increasing WACC. Its intrinsic value will not be maximized.
E. Continue as before, because there is no reason to expect its risk position or value to change over time as a result of its use of a single cost of capital.
Answer:
Option D. Become more risky and also have an increasing WACC. Its intrinsic value will not be maximized.
Explanation:
The reason is that different projects require different level of funding. If we are not increasing Debt and Equity at the same proportion for funding all the projects then we are actually increasing our WACC which means that the acceptability of the projects will not be appropriate here. The risk profile of all individual projects also matter because we use Ke cost of equity to calculate the WACC, which is calculated using the CAPM formula. And Beta Asset is the risk of the individual project industry which is used in the CAPM formula. All this increases the WACC which shows that the risk profile of the company has grown upwards.
Furthermore, if the WACC is higher then the intrinsic value of the projects can not be maximized and that's the reason why most firms try to have optimal level of capital structure (Percentage of equity and debt that gives lowest WACC).
Hence the option D is correct.
Answer:
i assume you are referring to variable as economic 'indicators'
Economic performance can be measured by a number of goals the government sets. for example, a lower unemployment rate, price stability or economic growth.
In terms of indicators:
economic growth would be indicated by GDP growth
Unemployment (obviously just by the unemployment rate)
And, price stability/inflation would be indicated by the change in CPI (consumer price index) otherwise called the inflation rate.
