Answer:
B) NDPFC + Indirect Taxes
Explanation:
Net domestic product (NDP) is obtained by subtracting depreciation from gross domestic product (GDP), and it can be calculated at market price (NDPmp) or at factor cost (NDPfc):
- NDPmp = GDPmp – depreciation
- NDPfc = GDPmp – depreciation – indirect taxes
If we substitute NDPfc into option B, we will get:
NDPmp = NDPfc + indirect taxes
NDPmp = (GDPmp - depreciation - indirect taxes) + indirect taxes
NDPmp = GDPmp - depreciation
Answer:
d. It implies that prices reflect all available information
Explanation:
Efficient Market hypothesis emphasizes upon the fact that stock prices are an outcome of released public information and assumes investors to be rational.
It points towards sensitivity of the market to the information made available and as per it, investors actions are an outcome of information that becomes available to them.
It means securities are correctly priced which wipes out any possibility of earning arbitrage gains i.e buying a security at a low price and selling it at a higher price.
Answer:
D: Companies want to be as profitable as possible.
Explanation:
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