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Sedbober [7]
3 years ago
6

The strong form of the efficient market hypothesis contends thatA) a select few institutional investors can earn abnormal profit

s.B) abnormal profits are randomly distributed.C) no one can consistently earn a profit.D) no one can consistently earn abnormal profits.
Business
1 answer:
Anni [7]3 years ago
5 0

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.

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A firm has a market value equal to its book value. Currently, the firm has excess cash of $900 and other assets of $5,100. Equit
Harrizon [31]

Answer:

$850

Explanation:

Price per share = $6,000 ÷1,000 = $6

Number of shares repurchased = $900 ÷$6 = $150

New number of shares outstanding = $1,000 - $150 = $850

Therefore $850 shares of stock will be outstanding after the stock repurchase is completed

8 0
3 years ago
Suppose that Inventories fall by $2 billion, Consumption increases by $8 billion, Welfare Payments decline by $3 billion, Export
Georgia [21]

Answer: <u><em> The measured-GDP would increase by $5 billion.</em></u>

Explanation:

Given :

Inventories fall by $2 billion,

Consumption increases by $8 billion,

Welfare Payments decline by $3 billion,

Export increases by $1 billion

Import also increases by $2 billion.

Note: While calculating GDP we will not include Welfare payments in it.

GDP = C + I + G + (X-M)

GDP = -2 + 8 + 1 - 2

GDP = $5 billion  

8 0
3 years ago
Gracie, inc. made a prepaid rent payment of $2,800 on january 1. the company's monthly rent is $700. the amount of prepaid rent
Dominik [7]
<span>Out of the prepaid rent of $2800, $700, the actual rent for the month of January, has to be debited to rent account and prepaid rent account will be credited. Now the prepaid rent account will show a smaller figure(2800-700 = 2100) This is the amount that will be shown in the prepaid rent account in the balance sheet. Of course it will be shown as an asset since it has a debit balance.</span>
7 0
2 years ago
If a price ceiling is set above the equilibrium price in a market rev:a. rationing will be necessary. b. surpluses of the commod
olga_2 [115]

Answer:

b. surpluses of the commodity will develop

Explanation:

A price ceiling is when the government or an agency of the government sets the maximum price for a good or service.

If price ceiling is set above equilibrium price, suppliers would increase supply while consumers would reduce demand. This would lead to an excess supply and surplus in the economy.

When price ceiling is set above equilibrium price, it is known as a non binding price ceiling.

I hope my answer helps you

4 0
2 years ago
The level of liquid assets that should be invested in marketable securities depends on several factors. This includes all except
-BARSIC- [3]

Answer:

c.

Explanation:

Based on the information provided within the question it can be said that the exception of the answers provided are seasonal cash requirements. This refers to the amount of cash you or the company needs to pay for unique expenses during a specific season. Which is not a factor when deciding what should be invested in marketable securities.

7 0
2 years ago
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