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Gemiola [76]
3 years ago
5

Dan is a chemist for ABC, a major drug manufacturer. Dan cannot earn excess profits on ABC stock based on the knowledge he has r

elated to his experiments if the financial markets are:_________________.
1. strong form efficient.
2. semistrong form efficient.
3. weak form efficient.
4. aware that the trader is an insider.
5. efficient at any level.
Business
2 answers:
Viefleur [7K]3 years ago
6 0

Answer:

1) strong form efficient.

Explanation:

The efficient market hypothesis states that all the relevant information regarding stocks traded in a market is already included in the price of the stocks.

This investment theory argues that if all the relevant information was public, then even if a person had insider information, it would be useless since everyone should have access to the same information. Of course this model is only theoretical, since in real life information is something very valuable and not everyone has access to it.

Readme [11.4K]3 years ago
5 0

Answer:

2. Semi-Strong Form Efficient

Explanation:

Semi-strong form of market efficiency occurs when all publicly available information is reflected on security prices such that, earning additional return is not a possibility.

Here, Dan can not earn excess profits on ABC stocks because, if the financial market is semi strong form efficient, his experience on technical and fundamental analysis, which is based on how profit is generated and current information respectively, can not help to determine the price movement in the future.

Also, based on research, it is suggested that developed market are semi strong efficient, while developing markets are not semi strong efficient.

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MakeYourClick is an online ad agency, which is known for its ability to create ads that lure customers to purchase. Brenda, an e
Yanka [14]

Answer: Competitive Click Fraud

Explanation:

 The competitive click fraud is is one of the type internet based fraud in which the computer program are generated the scripts by clicking on the given ads by using the PAY PER CLICK process that generate the cost or some fee.

According to the given question, the competitive click fraud is reduce the overall conversion rate and also skewed the information or the user data in the business. Brenda is charged the advertisement cost by clicking on the given link so Brenda has basically committed the competitive click fraud.  

 Therefore, Competitive Click Fraud  is the correct answer.

3 0
3 years ago
DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive
Oksanka [162]

Answer:

Year Cashflow        [email protected]% PV

$                      $

0 (750,000)             1          (750,000)

1        350,000               0.9259    324,065

2       325,000               0.8573     278,623

3        250,000              0.7938      198.450

4        180,000               0.7350      132,300

                                        NPV         184,438

The correct answer is D. The difference in answers is due to rounding error.

Explanation:

Net present value is the diffrence between initial outlay and present value of inflow. We need to discount the cash inflows for year 1 to year 4 at 8% and then calculate the present value of cash inflows by multiplying the cash inflows by the discount factors. Finally, we will calculate NPV by deducting the initial outlay from the present value of cash inflows.

6 0
3 years ago
Which of the following statements is false? Multiple Choice The short run refers to a period of less than one year. In the long
Jet001 [13]

Answer:

The short run refers to a period of less than one year.

Explanation:

The statements is false that the short run refers to a period of less than one year.

The short run, long run and very long run are different time periods in economics.

<u>Short run – where one factor of production (e.g. capital) is fixed</u>.

long run – Where all factors of production are variable,

Unlike in accounting where operating period refer to a period of one year, <u> there is no hard and fast definition as to what is classified as "long" or "short" and mostly relies on the economic perspective being taken.</u>

7 0
3 years ago
To explain the analogous relationship between the trail and the hike to the plant and inventory Alex makes the following stateme
wariber [46]

Answer:

True

Explanation:

In industry, inventory buildups are cancelled with increased sales and marketing activities, which attract rewards and punishments.  This is why it is always a taboo to observe idle workers.  Idle workers cost the entity much in expenses.  Workers are employed based on productivity and profitability indexes.  There is no business entity that employs workers for the fun of employment.

5 0
3 years ago
The following purchase transactions occurred during March for Rehoboth, Inc.:
cestrela7 [59]
It is the second answer 19 purchased
7 0
3 years ago
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