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djyliett [7]
3 years ago
13

Investors gravitate toward the latest hot stock even though it has never paid a dividend. Even though net income is projected to

fall over the current and next several years, the price of the stock continues to rise. What behavioral concept may explain this price pattern?A. , OverconfidenceB. , Loss aversionC. , Mental accountingD. , Calendar bias
Business
1 answer:
mestny [16]3 years ago
5 0

Answer:

The answer is A. Overconfidence

Explanation:

Investors in the described questions obviously have too much belief on themselves for the their abilities to assess the firm's capacities to create values for its shareholders given there are no certain evidences, for example, the constant and/or growing dividend streams, the better profit-generating capacities.

This is a good example of how Investors is overconfident in a stock's performances although it is unclear that the firm has been or will be performed at the investors' expected level.

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Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2012. On that date, Paar's equipment (10-year life) has a boo
RoseWind [281]

Answer:

B)  574,000

Explanation:

Equipment book of Paar value on december 31/14 of $294,000.-  

Add Kimmels equipment book value on december 31/14 of $190,00

Add original acquisition-date allocation to Kimmel´s equipment of ($400,000 - $272,000) = $128,000

Less Amortization of alloction ($128,000 / 10 years for 3 years) = (38,400)

Eqcuals consolidated equipment of $574,000

8 0
3 years ago
Which of the following is NOT correct about causal regression analysis of the form Y = f(X)? A. Selection of the appropriate cau
Law Incorporation [45]

Answer:

A. Selection of the appropriate causal variable Y is important

Explanation:

We have this function, Y = f(X).

From this function we can see that Y is dependent on X. That is, it is a function of X. Y is not a causal variable. A causal variable is a variable that is able to influence the variable of interest. From this question Y is the variable of interest. It is the dependent variable. The independent variable is X and it is the causal variable.

Therefore the incorrect one is Selection of the appropriate causal variable Y is important

5 0
3 years ago
Choose the portfolio from the following set that is not on the efficient frontier. Group of answer choices C: expected return of
ddd [48]

Answer:

Option C is correct one.

expected return of 38 percent; standard deviation of 38 percent

Explanation:

Expected return of 38 % and Standard deviation of 38%. this will be optimum return and not an efficient frontier.

4 0
3 years ago
Consider the following information for three stocks, A, B, and C. The stocks' returns are positively but not perfectly positivel
rjkz [21]

Answer:

The answer is letter D.

Explanation:

The correct statement is  Portfolio ABC's expected return is 10.66667%

5 0
3 years ago
Archie and Tina Reynolds are married and always file Married Filing Jointly.
Leni [432]

Based on the information given, it can be noted that the child that qualifies for the will be Laura.

<h3>What Is Tax Credit?</h3>

A tax credit simply means an amount of money that a taxpayer is expected to deduct from the tax that will be paid.

In this case, it can be noted that the child that qualifies for the tax credit will be Laura. Timothy isn't a qualifying child because he has turned 17.

In conclusion, the clause is typically for children below 17 years.

Learn more about tax on:

brainly.com/question/17395659

7 0
2 years ago
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