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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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nadya68 [22]
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6 0
3 years ago
Why do we have to pay
const2013 [10]

Answer:

you have to pay because it's a trade instead of for an example trading a coat for a meal you would give pay money to get the object.

Explanation:

Hope this helps:)

6 0
2 years ago
The common stock of the P.U.T.T. Corporation has been trading in a narrow price range for the past month, and you are convinced
konstantin123 [22]

Answer:

A) according to put call parity:

price of put option = call option - stock price + [future value / (1 + risk free rate)ⁿ]

put = $6.93 - $125 + [$140 / (1 + 5%)¹/⁴] = $6.93 - $125 +$138.30 = $20.23

B)

you have to purchase both a put and call option ⇒ straddle

the total cost of the investment = $6.93 + $20.23 = $27.16, this way you can make a profit if the stock price increases higher than $125 + $20.23 = $145.23 or decreases below than $125 - $20.23 = $104.77

4 0
3 years ago
The product of 59,736 and 600 is
Juli2301 [7.4K]

Answer:

D

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6 0
3 years ago
The notion that developing countries can catch up or converge with developed countries is one of the key insights of a branch of
wariber [46]

The Catch-up  notion that developing countries can catch up or converge with developed countries is one of the key insights of a branch of economics . According to the catch-up effect idea, which is based on the finding that less developed economies grew more quickly than wealthier nations, all economies would eventually converge in terms of per capita income.

Or, to put it another way, the less developed economies will figuratively "catch-up" to the stronger ones. The theory of convergence is another name for the catch-up effect. The Opening up their economics to free trade and building  the social capacities.

To learn more about Catch-up, click here.

brainly.com/question/14895090

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8 0
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