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IgorLugansk [536]
3 years ago
11

Suppose you find that prices of stocks before large dividend increases show on average consistently positive abnormal returns. i

s this a violation of the emh? yes no
Business
2 answers:
bearhunter [10]3 years ago
8 0

Answer: No

Explanation:

EMH an acronym for Efficient market Hypothesis is a theory that security prices reflects all available information making it impossible to beat the market by taking undue advantages.

The information provided in the scenario is not detailed enough to give an investor the opportunity to earn abnormal returns .It just show that good performance leads to higher dividends as better performing stocks pay higher dividends

RideAnS [48]3 years ago
5 0

Answer:

NO

Explanation:

The efficient market hypothesis (EMH) theory states that the market price of securities reflects all the public information regarding them, e.g. expected earnings, etc. One of the basic premises of EMH is that it is useless for investors to pick individual stocks to try to obtain higher than normal results. It places a lot of emphasis on the market as a whole, instead of individual stocks.

If the prices of stocks vary a lot just before dividends increase, it actually reflects and supports EMH. Since the market expects an increase in dividends, the price of stocks will rise, but generally stock prices will rise too much and must then be adjusted to reflect the real value. Also, in the short run prices will appear to be varying randomly, but that happens because the inflow of information is not constant and expectations will vary. But on the long run, the prices will adjust to the correct information.

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In an inventory control system, the annual demand is 12,000 units, the ordering cost is GHS 30 per order and the inventory holdi
Fittoniya [83]

Answer:

Total cost per year = $1,801,860

Explanation:

Given:

Annual demand = 12,000 units

Ordering cost = $30 per order

Inventory holding cost = $3 per year

Order quantity = 1000 units

Cost per unit of the item = $150

Find:

Total cost per year

Computation:

Total cost per year = Purchase cost + Order cost + Inventory holding cost

Total cost per year = [12,000 x 150] + [12,000/1000 x 30] + [1,000/2 x 3]

Total cost per year = 1,800,000 + 360 + 1500

Total cost per year = $1,801,860

5 0
3 years ago
What are some certifications that would benefit my career in the financial industry, that I can obtain quickly?
katrin2010 [14]
A business degree !
3 0
3 years ago
According to the capital asset pricing model (CAPM), a capital budgeting project that has a beta equal to zero should be evaluat
lara [203]

Answer:

a. True

Explanation:

from the CAPM formula we can derive the statemeent as true.

Ke= r_f + \beta (r_m-r_f)

risk free = 0.05

market rate = 0.12

premium market = (market rate - risk free) 0.07

beta(non diversifiable risk) = 0

Ke= 0.05 + 0 (0.07)

Ke 0.05000

As the beta multiplies the difference between the market rate and risk-free rate a beta of zero will nulify the second part of the equation leaving only the risk-free rate. This means the portfolio is not expose to volatility

6 0
3 years ago
In what circumstances is it ethical for public speakers to use emotional appeals when speaking to persuade? Are there any kinds
Soloha48 [4]

Answer and explanation:

Emotional appeals are ethically valid in persuasive speeches when the speaker wants to emphasize a specific matter that is relevant for the audience to understand. By showing anger, pity or fear the speaker tries to put into the audience's shoes but immediately after that exposes the solution to the possible problem.

However, there might be cases when emotional appeals could be taken too personal which turns the speech subjective. The speaker must avoid getting to that point otherwise the audience will be unlikely to identify themselves with what the speaker is trying to expose.

6 0
3 years ago
Justin is a sales executive at a manufacturing company. One of his clients who purchases products from him at a higher price tha
Dafna11 [192]

Answer:

The correct answer is option D.

Explanation:

An ethical dilemma can be defined as a situation in the decision-making process in which whatever decision is chosen some ethical principle is being compromised.  

Out of two moral choices, neither one is unambiguously preferable or acceptable. The situation becomes complex as choosing one alternative will lead to transgression of another.

6 0
3 years ago
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