1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alex41 [277]
3 years ago
11

Which of the following are consistent with the efficient markets hypothesis? Check all that apply. You should spend several hour

s a day studying the business section of your local newspaper to determine which stocks to add to your investment portfolio. O Stock markets reflect all available information about the value of stocks O Changes in stock prices are impossible to predict.
Business
1 answer:
denis23 [38]3 years ago
3 0

Answer:

1. Stock markets reflect all available information about the value of stocks AND

2. Changes in stock prices are impossible to predict.

Explanation:

The characteristics that are consistent with the efficient markets hypothesis are that

1. Stock markets reflect all available information about the value of stocks

<em>By definition efficient markets are those whose asset prices reflect all available information.</em>

2. Changes in stock prices are impossible to predict.

<em>The efficient market hypothesis has been described as a backbreaker for forecasters. In its crudest form it effectively says that the returns from speculative assets, are </em><em><u>unforecastable</u></em><em>.</em>

You might be interested in
Phillips Equipment has 80,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 7.5%. T
ollegr [7]

Answer:

A) 10.15%

Explanation:

Cost of equity (Re) = 14.06% or 0.1406

cost of preferred stock (Rp) = 7/65 = 0.10769

cost of bonds (Rb) = 7.5% or 0.075

 outstanding shares = 2.5 million shares x $42 = $105 million

bonds outstanding = $1,000 x 80,000 bonds = $80 million

preferred stock = $65 x 750,000 = $48.75 million

corporate tax rate = 38% or 0.38

total market value of equity + debt (in millions) = $105 + $48.75 + $80 = $233.75

WACC = [(outstanding shares / total market value) x Re] + [(preferred stock / total market value) x Rp] + {[(bonds outstanding / total market value) x Rb] x (1 - tax rate)}

WACC = [($105m / $233.75m) x 0.1406] + [($48.75m / $233.75m) x 0.10769] + {[($80m / $233.75m) x 0.075] x (1 - 0.38)}

WACC = 0.06316 + 0.02246 + 0.01591 = 0.10153 or 10.15%

6 0
3 years ago
Provided other eligibility requirements are met, who is eligible for Medicare?
alexandr1967 [171]

Answer:

Generally, Medicare is available for people age 65 or older, younger people with disabilities and people with End Stage Renal Disease (permanent kidney failure requiring dialysis or transplant). You or your spouse had Medicare-covered government employment.

5 0
3 years ago
Beth and Bob Martin have total take-home pay of $4,600 a month. Their monthly expenses total $3,450. Calculate the minimum amoun
blsea [12.9K]

Answer:$10,350

Explanation:

3,450* 3 (month minimum) = 10,350

6 0
3 years ago
What role did patents play in the work of inventors such as Thomas Edison? Patents protected inventors and let them profit from
umka21 [38]

<em>Patents protected inventors and let them profit from their inventions</em>

<em>~Luis~</em>

5 0
3 years ago
The buyer for an electronics store wants to estimate the proportion of defective wireless game controllers in a shipment of 5,00
Mila [183]

Answer: (C) Cluster sample

Explanation:

The cluster sampling is one of the sampling method type that is used for analyzing the given data or information from the given sampling cluster. In the cluster sampling method, the researches basically dividing the statistical population into the individual or separate group for analyzing the data.  

According to the given scenario, the cluster sample is one of the type of sample which us use for the given estimated problem.

The Cluster sampling is also refers as the one stage sampling process if the each element in the cluster are sampled together.

Therefore, Option (C) is correct.  

7 0
3 years ago
Other questions:
  • An investor invests $4,000 to buy 200 shares of Sand Corporation, which has an expected return of 24%; $2,000 to buy 100 shares
    7·1 answer
  • Other things equal, if there is an increase in nominal GDP, bond prices will rise. the interest rate will rise. consumption spen
    12·1 answer
  • If a consumer feels that the amount paid by the e&amp;o company is insufficient and the licensee has no money, the consumer coul
    7·1 answer
  • Sixth fourth bank has an issue of preferred stock with a $6.10 stated dividend that just sold for $123 per share. what is the ba
    12·1 answer
  • Rob operates a small plumbing supplies business as a sole proprietor. In 2018, the plumbing business has gross business income o
    15·1 answer
  • In forward transactions A. currency is bought and sold for delivery later that same day. B. currencies may only be exchanged at
    14·1 answer
  • Pelzer Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have a 8% annual coupon rate and were issued
    11·1 answer
  • A product enters the maturity phase of the life cycle, during which sales are strong but growth is slowing. What product managem
    8·1 answer
  • One of the great dangers in allocating common fixed Blank 1 of 1 costs is that such allocations can make a product line look les
    5·1 answer
  • Prepare the schedule of cost of goods manufactured for Barton Company using the following information.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!