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stepladder [879]
3 years ago
12

Sabrina’s father is the limo driver to the President and CEO of RSG, an investment bank in New York. Sabrina buys RSG stock when

ever her father overhears information indicating increased profits at RSG, and sells RSG stock whenever her father overhears information indicating decreased profits at RSG. If she can generate consistent abnormal returns in this manner then this is a failure of __________.
Business
1 answer:
Delvig [45]3 years ago
4 0

If she can generate consistent abnormal returns in this manner then this is a failure of "strong form efficiency".

<u>Explanation:</u>

The most rigorous variant of the Efficient Market Hypothesis (EMH) investment principle, which conveys that all knowledge in a market, public or private is compensated for in the value of a product is understood as "strong form efficiency".

Strong form efficiency experts claim that even insider knowledge does not give a benefit to an investor. This extent of market efficiency indicates that profits beyond ordinary yields can not be noticed irrespective of how much study or information stakeholders have direct exposure to.

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A portfolio consists of 40% in Security A and 60% in Security B. The covariance matrix for A is 144, 225; for B is 225, 81. The
zheka24 [161]

Answer:

A portfolio consists of 40% in Security A and 60% in Security B. The covariance matrix for A is 144, 225; for B is 225, 81. The standard deviation for the portfolio is <u>12.7</u>

Option D is correct

Explanation:

Wa: 0.4

Wb: 0.6

a^2: 144

b^2: 81

Cov(a,b): 225

Portfolio Variance:

: (0.4*0.4*144) + (0.6*0.6*81) + (2*0.4*0.6*225)

: 160.2

Portfolio Standard Deviation: 12.7

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3 years ago
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An economist calculates the GDP for one year using the expenditure approach by adding together all the amounts spent on final goods and services. This also includes investments, government consumptions and net exports. The answer to the question would be choice A.
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OlgaM077 [116]

Answer:

Short term

Explanation:

A short term goal is a mission that one wishes to accomplish in the immediate future. In general, short goals are achieved within one year. Plans or objectives that are set to be fulfilled within one year or less are short-term goals.  Another example of a short term goal is the purchase of household furniture.

The spa package budget will be achieved in six weeks, thereby qualifying as a short term goal. Long-term goals contrast short term goals as they take longer than one year to achieve.

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Rudiy27

Answer: Charge a lower price after half-time

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