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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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One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that is sold for $3.00 to consumers. A second
Phoenix [80]

Answer:

The correct answer is option b.

Explanation:

GDP is a measure of economic growth that shows the level of final goods and services produced in an economy in a year. It includes only final goods and services, intermediate goods are not included.  

So here the value of flour used to make bread will not be included as it is an intermediate good. But the value of bread will be included. The value of the second bag of the floor will be included as it is a final good sold to the consumer.  

Increase in GDP

= $3 + $2

= $5

8 0
3 years ago
Handy Man, Inc., has zero coupon bonds outstanding that mature in eight years. The bonds have a face value of $1,000 and a curre
AnnZ [28]

Answer:

5.657%

Explanation:

Data provided:

Face value = $1,000

Current market price = $640

Time of maturity, t = 8 year

Now,

the compounding formula is given as:

Face value = Current amount × (1+\frac{r}{n})^{nt}

where,

r is the rate i.e pretax rate of debt

n is the number of times the interest is compounded i.e for semiannual n = 2

thus, on substituting the values, we get

$ 1,000= $ 640 × (1+\frac{r}{2})^{2\times8}

or

1.5625 = (1+\frac{r}{2})^{16}

or

(1+\frac{r}{2}) = 1.0282

or

r = 0.05657

or

pretax cost of debt = 0.05657 × 100% = 5.657%

3 0
3 years ago
A firm pursuing a best-cost provider strategy A. seeks to achieve the best costs by using the best operating practices and incor
Eduardwww [97]

Answer:

The correct answer is letter "D": seeks to deliver superior value to buyers by satisfying their expectations on key attributes and beating rivals in meeting customer expectations on price.

Explanation:

Best-cost provider is a strategy by which suppliers attempt to provide consumers with high-quality products using methods of production that reduce costs. By doing so, suppliers would give more value to the money of their customers while meeting their expectations on the product purchased at the same time.

As production costs are lower, suppliers would be generating a comparative advantage.

3 0
3 years ago
If a marketing manager queries a marketing information system to determine the effect of three different levels of price for a n
9966 [12]

Answer:

sensitivity analysis

Explanation:

Based on the information provided within the question it can be said that in this scenario the marketing manager would be using sensitivity analysis. This is a method of analyzing the uncertainty outputs that a mathematical model will have on something. Which in this case would be the different price levels on a new product.

6 0
3 years ago
In a project network, the critical path is the sequence of activities which has the:________.
Scorpion4ik [409]

In a project network, the critical path is the sequence of activities which has the longest time. A series of interconnected tasks known as the critical route has a direct impact on the project's completion date.

<h3>What do you men by the project network?</h3>

A project network is a graph that displays the actions, lengths of time, and dependencies among your project's tasks.

Techniques like Gantt charts, PERT charts, and critical path management can be used to form project networks. The project network has a number of paths, but each terminal piece must be located on just one of those paths.

A project's workflow is shown graphically in a project network diagram. A network diagram is a project management chart that lists boxes for activities and roles, followed by arrows that show the timetable and order in which the work must be done.

Therefore, in a project network, the critical path is the sequence of activities which has the longest time. A series of interconnected tasks known as the critical route has a direct impact on the project's completion date.

To know more about the project network, visit:

brainly.com/question/29417593

#SPJ2

3 0
1 year ago
Read 2 more answers
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