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MA_775_DIABLO [31]
3 years ago
15

Which of the following statements accurately describes the efficient market hypothesis? A. Stock prices must go up upon good new

s, even if the news was expected. B. Most stock traders can consistently outperform the market, even after taking into account their transactions costs and their risk-taking behavior. C. No one can ever outperform the market. D. Prices fully reflect all available information.
Business
1 answer:
kotegsom [21]3 years ago
5 0

Answer:

D. Prices fully reflect all available information

Explanation:

As per the efficient market hypothesis, security prices reflect full available market information due to which stocks trade at their fair market value prices.

Due to stocks trading at their fair market value, any possibility of making arbitrage gains is wiped out as buying low and selling high isn't a possibility.

The theory also states that the only way to earn higher profits is by assuming a higher degree of risk.

The theory states that stock prices follow a random walk and there is no perfect method to estimate the patterns and trends of the market irrespective of fundamental or technical analysis carried out.

The efficient market theory mentioned 3 conditions or market forms, strong form, semi strong form and weak form.

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Pork barrel projects are approved because they do what
Rina8888 [55]
The answer is that " they help politicians win support from their constituents".

Pork barrel is an illustration for the allotment of government spending for restricted activities secured exclusively or basically to convey cash to an agent's area. The utilization started in American English. In decision battles, the term is utilized as a part of deprecatory mold to assault rivals.
8 0
2 years ago
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You are holding a stock that has a beta of 1.39 and is currently in equilibrium. The required return on the stock is 20.47%, and
r-ruslan [8.4K]

Answer: 26.73%

Explanation:

You can calculate the expected return using the Capital Asset Pricing Model (CAPM).

Formula is:

Expected return = Risk free rate + beta * (Market return - risk free rate)

Use the previous figures to solve for the risk free rate:

20.47% = Rf + 1.39 * (16.50% - Rf)

20.47% = Rf + 22.935% - 1.39R

20.47% - 22.935% = Rf - 1.39Rf

-2.465% = -0.39Rf

Rf = -2.465% / -0.39

= 6.32%

New expected return is:

= 6.32% + 1.39 * (21% - 6.32%)

= 26.73%

7 0
3 years ago
The primary objectives of control over inventory are
Morgarella [4.7K]

Answer: The correct answer is to safeguard the inventory and reporting the inventory on the financial statements.

Explanation: One of the primary objectives of control over inventory is to safeguard the inventory from damage or theft. The second objective is to report the inventory on the financial statements.

4 0
3 years ago
How does the government typically change fiscal policy to try to improve the u.s. economy during a recession?
Pie
<span>Fiscal policy allows the government to adjust taxes and government spending during times of recession and in times when the economy is doing really well. During a recession the government will often lower taxes and interest rates and increase government spending in order to boost the economy. When the economy is going well, tax rates and interest rates will be increased and government spending will be slashed in order to create a surplus for harder times when the government needs to spend more.</span>
4 0
3 years ago
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Given the following information, compute the property tax rate for the community in percentage terms. Total budget expenditures:
tangare [24]

Answer:

B) 4.0%

Explanation:

to calculate the property tax rate we can use the following formula:

property tax rate = (total budget - non property tax income) / (total asses value of properties - total exemptions)

property tax rate = ($108 - $50) / ($2,000 - $550) = $58 / $1,550 = 0.037 ≈ 4%

6 0
3 years ago
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