Answer:
b) implies that security prices properly reflect information available to investors and that active traders will find it difficult to outperform a buy-and-hold strategy.
Explanation:
The efficient market hypothesis states that the price of assets in the market reflects all information that is available. This means that it is impossible to gain unfair advantage over others in the market as a result of privileged information about a transaction.
In this scenario a buy and hold strategy will be most effective because investors can buy assets and hold them for a long time regardless of short term fluctuations. Sale is made at a optimal time.
Active traders will be subject to short term fluctuations and will most likely not perform like the buy and hold traders
Answer:
The correct answer is C. classical economist.
Explanation:
Classical economics reoriented economic thinking away from the approach that was based on the preferences of rulers or social classes. The classics emphasized the benefits of free trade and developed an organized analysis of the value of goods and services as a reflection of their cost of production.
Classical economists opposed government intervention in the market through price controls, fees, regulations or any other mechanism that altered its normal functioning.
Answer:
Her recognized gain is $2,000
Explanation:
Data provided in the question:
Stock basis = $8,000
Fair market value = $6,000
Sale value = $10,000
Now,
Ralph's daughter recognized gain or loss will be
= Sale value - Stock basis
or
Ralph's daughter recognized gain or loss = $10,000 - $8,000
or
Ralph's daughter recognized gain or loss = $2,000
Here,
the positive value means that there is a gain.
Hence,
Her recognized gain is $2,000
Answer:
The correct option is B. expand the production possibilities of an economy.
Explanation:
Economic growth can be defined as the increase in an economy's production of economic goods and services, often compared from one period of time to another. It can be measured in any of the following:
- Nominal or real (adjusted for inflation) terms.
- Gross National Product (GNP)
- Gross Domestic Product (GDP), etc.
Contributors to economic growth include:
- Increases in capital goods.
- Increase in labor force.
- Technology.
- Human capital.
In simplest terms therefore, economic growth is used to refer to an increase in the aggregate production in an economy.
Answer:
B). Response bias
D). The interviewer should reword the question.
Explanation:
Response bias is described as the type of bias in which a variety of tendencies are displayed by the respondents to answer the questions asked in the survey inaccurately or misleadingly. These false responses eventually lead to a false or deceiving conclusion. In the given survey, 'response bias' is displayed as the respondents may display a tendency to answer the question falsely as the feeling of 'patriotism' evoked by the word 'patriotic' may prevent their original opinions to come out. Thus, <u>option B</u> is the correct answer to describe the bias in this survey.
In order to prevent this bias, the interviewer must 'reword the question' and remove the word 'patriotic' as it develops the feeling of patriotism in the respondents which mars them from answering accurately and share their true opinions or thoughts in the regards of 'supporting armed forces.' This rewording will help evoke the true and authentic responses without any bias. Thus, <u>option D</u> is the correct answer to remedy the bias.
