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torisob [31]
3 years ago
5

If the financial markets are highly efficient, then:

Business
2 answers:
9966 [12]3 years ago
8 0

In my opinion, when financial markets are highly efficient, then we have to do lot more trades than usual to earn most of the money out of it. So option D is the correct answer which suggests that having a professional manager who actively trades your portfolio is most likely the best investment strategy.

When financial markets are efficient, we need to put more and more trades, and with the help of a professional financial analyst, we can increase the volume of our trades and make more money in the volatile efficient market. Though the risks are also high, but high risk high return is always the policy for people who are seeking higher rewards.

asambeis [7]3 years ago
3 0
Choice (b) is correct. Market efficiency entails unpredictable stock prices in the market. Since there is a higher risk of investment losses in an unpredictable stock prices change, the best investment strategy is to diversify portfolio so as to minimize loss on the other stock while maximizing gain from another.
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Which is the best answer
Ipatiy [6.2K]
The answer would be between A and D.
3 0
3 years ago
What is not an example of money?
melamori03 [73]
B. credit because credit is just how well you pay bills
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3 years ago
On April 11 of the current year, Zack Corporation had a market price of $48 per share of common stock. Its par value was $10 per
NikAS [45]

Answer:

The dividend yield for Zack Corporation 8%,the first option

Explanation:

The dividend yield is a measure of business performance used by investors which compares the dividend paid by a stock to its market price(price paid by investors to acquire the stock)

dividend per share for Zack Corporation is $3.90

market price per share is $48

dividend yield =$3.90/$48*100=8.13%

The correct option is the first option 8% since the figure above was simply rounded down to whole number

3 0
3 years ago
When the cross price elasticity between good X and other related goods is positive and very low firm X can be assumed to have?
geniusboy [140]

Answer:

c. a significant amount of market power 

Explanation:

Cross price elasticity measures the responsiveness of quantity demanded of a good to the changes in price of another good.

If the cross price elascitiy is postive, the goods are subsituites.

If the cross price elasticity is negative, the goods are complementary goods.

If the cross price elasticitiy is low the firm has market power. It means that it's consumers do not change the quantity demanded when the price of the good changes

If the cross price elasticitiy is high, the market has low market power.

I hope my answer helps you.

3 0
3 years ago
First National Bank of America has more than 75% of its assets in first residential fixed-rate mortgages that mature in more tha
iris [78.8K]

Answer:

2. Interest income will drop by less than $3 million for a sudden 1% drop in market interest rates

Explanation:

Since in the question it is mentioned that there is decrease in 2021 interest income of $3 million in the case when there is a sudden decline of 1% in the rate of interest of the market this is due to the convexity of the curve as the GAP analysis and assume straight line

So the option 2 is correct

7 0
3 years ago
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