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BlackZzzverrR [31]
3 years ago
10

An efficient market reflectsA) only historical information.B) only the information related to events that have already occurred.

C) all publicly known information related to past events and announced future events.D) all information including predictions about future information.
Business
1 answer:
Masja [62]3 years ago
4 0

Answer:

The correct answer is option D.

Explanation:

The efficient market hypothesis is a theory in modern financial economics which states that the share prices reflect all available information and alpha generation is impossible. Neither fundamental nor technical analysis can give excess returns which are also risk-free.

Share prices in an efficient market reflect all the information, both public and private. This information includes future predictions. All this information is widely available to all the investors and they correctly interpret this information and quickly adjust to it.

You might be interested in
Staci invested $950 five years ago. Her investment paid 7.2 percent interest compounded monthly. Staci's twin sister Shelli inve
AysviL [449]

Answer:

$1,360.20 and $1,337.35

Explanation:

In this question, we have to used the Future value formula that is shown below:

Future value = Present value × (1 + rate)^number of years

For Staci, it would be

Present value = $950

Rate =  7.2% ÷ 12 months = 0.6%

Number of years = 5 year × 12 months = 60

So, the future value

= $950 × (1 + 0.6%)^60

= $950 × 1.431788412

= $1,360.20

For Shelli,  it would be

Present value = $900

Rate =  8% ÷ 4 quarters = 2%

Number of years = 5 year × 4 quarters = 20

So, the future value

= $950 × (1 + 2%)^20

= $950 × 1.485947396

= $1,337.35

5 0
2 years ago
In order for "limit pricing" to be effective, the firm practicing such a strategy must be able to charge a price that is:_______
pentagon [3]

In order for "limit pricing" to be effective, the firm practising such a strategy must be able to charge a price that is lower than the potential entrant's ATC but greater than the firm's own ATC.

Explanation:

A pricing strategy is a level where products are sold by a supplier at an expense that is cheap enough to make the market unprofitable for others. Monopolies use it in order to discourage market entry and in many cases it is illegal.

It is not able to sustain a monopolistic-ally profitable firm where P = MC and growth, with a long-run balance, generates an efficiency that approaches the minimum possible in an ATC business. Profit so long as potential customers can not enter the market.

5 0
3 years ago
Suppose Stark Ltd. just issued a dividend of $1.59 per share on its common stock. The company paid dividends of $1.25, $1.33, $1
vlada-n [284]

Answer:

Explanation:

arithmetic average growth rate = {[(1.33 - 1.25)/1.25] + [(1.40 - 1.33)/1.33] + [(1.51 - 1.40)/1.40] + [(1.59 - 1.51)/1.51]} / 4 = {0.064 + 0.053 + 0.079 + 0.053} / 4 = 0.06225 x 100 = 6.225%

geometric growth rate = ⁴√{0.064 x 0.053 x 0.079 x 0.053} = 0.061%

a) using arithmetic average growth rate

Div₁ = $1.59 x 1.06225 = $1.689

P₀ = $40

g = 6.225%

40 = 1.689 / (Re - 0.06225)

Re - 0.06225 = 1.689 / 40  = 0.04222

Re = 0.04222 + 0.06225 = 0.10447 = 10.45%

b) using geometric average growth rate

Div₁ = $1.59 x 1.061 = $1.68699

P₀ = $40

g = 0.061%

40 = 1.68699 / (Re - 0.061)

Re - 0.061 = 1.68699 / 40  = 0.04217

Re = 0.04217 + 0.061 = 0.103174 = 10.32%

8 0
3 years ago
Accounting information systems:
Dafna1 [17]

Answer:

The correct answer is letter "D": are an information system that records, processes, and reports on transactions to provide financial and non-financial information for decision making and control.

Explanation:

An Accounting Information System or AIS is a way to track all of a company's accounting activities. An AIS provides easy access to the same information to different departments. An AIS collects, stores, retrieves and processes the data. The data can come from internal and external sources allowing managers to make decisions about the business operations.

3 0
2 years ago
The main expense of a merchandiser is usually ________.
olya-2409 [2.1K]

The answer that will fill in the blank is cost of goods sold because the merchandiser’s main expense is the cost that they receive in goods that they have sold to the consumers. The merchandiser is the one responsible of ensuring products are placed and are properly organized in the store.

7 0
2 years ago
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