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denis23 [38]
3 years ago
12

Joe bought a stock at $57 per share. The price promptly fell to $55. Joe held on to the stock until it again reached $57, and th

en he sold it once he had eliminated his loss. If other investors do the same to establish a trading pattern, this would contradict ________.
Business
1 answer:
Y_Kistochka [10]3 years ago
4 0

Answer: Weak form EMH

Explanation:

Weak form efficiency is also called the random walk theory states that past volume, price movements and earnings do not affect the price of a stock and can not be used to forecast its future direction. Weak form efficiency states that prices of future securities are random and not determined by past events and that there is no relationship between past information and current market prices.

The principle of weak form efficiency has been contradicted because other investors are making use of Joe's past information to create a trading pattern.

You might be interested in
Bryce Co. sales are $801,000, variable costs are $465,100, and operating income is $287,000. What is the contribution margin rat
KATRIN_1 [288]

Answer:

Contribution margin ratio= 0.42

Explanation:

Giving the following information:

Bryce Co. sales are $801,000

Variable costs are $465,100

Operating income is $287,000.

<u>To calculate the contribution margin ratio, we need to use the following formula:</u>

contribution margin ratio= (sales - variable cost) / sales

contribution margin ratio= (801,000 - 465,100) / 801,000

contribution margin ratio= 0.42

8 0
3 years ago
At the time a $400 petty cash fund is being replenished, the company's accountant finds vouchers totaling $350 and petty cash of
Oksi-84 [34.3K]

Answer:

Explanation:

The journal entry to record the expenditure account is shown below:

Postage A/c Dr $100

Business lunches A/c Dr $150

Delivery fees A/c Dr $75

Office supplies /c Dr $25

                To  Petty cash A/c $350

(Being expenditure is recorded)

So, the debit petty cash account would not be considered as it is credited while passing the journal entry.

7 0
3 years ago
Special Plc has an issued share capital at 1 January 2019 of 1,000,000 ordinary shares of 20p each and 50,000 convertible prefer
coldgirl [10]

Answer:

A. £4.15

B.£4

Explanation:

A. Calculation for the diluted EPS for 2019

Using this formula

2019 Diluted EPS =(Earnings after tax for the year ended-Preferred Dividends)/Total Diluted Shares Outstanding

Let plug in the formula

2019 Diluted EPS=[£5,000,000-(£2.50 per share*50,000)/£1,000,000+ (£250,000*500/£1,000)+(50,000*£1)]

2019 Diluted EPS=[£5,000,000-(£2.50 per share*50,000)/£1,000,000+ (£250,000*0.5)+(50,000*£1)]

2019 Diluted EPS=[(£5,000,000-£125,000)/(£1,000,000+£125,000+£50,000)]

2019 Diluted EPS=£4,875,000/£1,175,000

2019 Diluted EPS=£4.15

Therefore 2019 Diluted EPS (Earning per share) will be £4.15

B. Calculation for the diluted EPS assuming that the convertible preference shares were receiving a dividend of £6 per share instead of £2.50.

Diluted EPS=[£5,000,000-(£6 per share*50,000)/£1,000,000+ (£250,000*500/£1,000)+(50,000*£1)]

Diluted EPS=[£5,000,000-(£6 per share*50,000)/£1,000,000+ (£250,000*0.5)+(50,000*£1)]

Diluted EPS=[(£5,000,000-£300,000)/(£1,000,000+£125,000+£50,000)]

Diluted EPS=£4,700,000/£1,175,000

Diluted EPS=£4

Therefore the Diluted EPS (Earning per share) will be £4

6 0
3 years ago
How has the pattern of trade changed in the United States since 1960?
ki77a [65]

Answer:

The correct answer is letter "B": Imports have grown faster than exports, and the United States has become a net importer.

Explanation:

International trade is not just a major engine of the U.S. economy, but for the global economy. The total trade share in terms of the global Gross Domestic Product was 25% in 1960 and it has raised to 56% in 2017. Though, imports have surpassed the level of exports, making America be a net importer. Main imports are in the form of raw materials for the production of different goods mainly vehicles, and clothing.

5 0
3 years ago
Assume there is a 35% tariff on bananas imported into the United States. Also, assume that the market competition is at its begi
oee [108]

Answer:

E) $1.35/bunch

Explanation:

In this case, to calculate the cost of imported bananas all we have to do is multiply the cost of domestic bananas by 135%.

This is not how it works in real life. Usually foreign products pay tariffs according to their FOB values, they don't use the local market values as reference values. That is the reason why imported goods can negatively affect domestic industries since some foreign markets are able to produce much cheaper products than American industries. Even if you add the import tariffs some foreign products may still be much cheaper than domestic products.

4 0
3 years ago
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