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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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Credit risk measures using the structural model: assume a company has the following characteristics.
Alexeev081 [22]

Answer:

a ) Probability of default of debt over the time to maturity is 12.92%

(b ) Expected loss: $39.53

(C ) Present value of expected loss is $45.59

Explanation:

a ) Probability of default of debt over the time to maturity is 12.92%

(b ) Expected loss: $39.53

(C ) Present value of expected loss is $45.59.

Values calculated as shown in my detailed step by step answer at the attachment.

please kindly refer to attachment.

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3 years ago
Two workers have the job of placing plastic labels on packages before the packages are shipped out. The first worker can place 1
monitta

Answer:

The correct answer is: The second worker.

Explanation:

Productivity is an economic term describing the relationship between outputs as compared to inputs needed to produce those outputs. It is a measure of efficiency. Typically inputs are raw materials, labor, and capital assets. Outputs are generally expressed as either revenue or total units of finished goods.

In the example, a form to measure each worker's productivity is comparing how many plastic labels they can place per hour. Thus:

  • Worker 1: <em>1000 per 1/2 hour (30 minutes) </em>
  • Worker 1: <em>2000 per 1 hour  </em>

  • Worker 2: <em>850 per 1/3 hour (20 minutes)</em>
  • Worker 2: <em>2550 per 1 hour </em>

Then, the second worker is more productive.

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3 years ago
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Answer:

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6 0
3 years ago
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<u>90% </u>of a manufacturer's profit and income comes from repeated purchases from returning customers.

<h3>What is Lifetime Customer Value (LCV)?</h3>

Lifetime Customer Value is the entire contribution of a customer to a brand or business enterprise over the course of their relationship.

It's an essential metric since keeping returning customers requires less than acquiring new ones, thus improving the value of your existing customers is an excellent strategy to generate growth and profit.

Therefore, we can conclude that <u>90% </u>of a manufacturer's profit and income comes from repeated purchases from returning customers.

Learn more about Lifetime customer value here:

brainly.com/question/26483324

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Waitstaff at restaurants typically do what?
Aleksandr-060686 [28]
Option A, but even that is not a requirement.
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