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
igomit [66]
3 years ago
6

When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected retur

n for the period with any remaining difference to the actual return due to:_________
a. A predictable amount based on the past prices.
b. A component based on new information unrelated to past prices.
c. The security's risk.
d. The risk free rate.
e. None of the above.
Business
1 answer:
Bezzdna [24]3 years ago
3 0

Answer:

e. None of the above.

Explanation:

When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due <u>due to new information related to the stock​"</u>. This is because any new information on stock which is unrelated to stock prices will lead to an increase/decrease in the stock price over a period of time.

You might be interested in
You purchased 1,000 shares of stock in Natural Chicken Wings, Inc., at a price of $43.37 per share. Since you purchased the stoc
leonid [27]

Answer:

9.68%

Explanation:

Percent Return on Investment is calculated as Net Profit / Cost of Investment x 100

Net Profit= $46,620 (1,000 x $46.62 per share) + $950 (1,000 x $.95 per share) - $43,370 (1,000 x $43.37 per share) = $4,200

Cost of Investment= $43,370 (1,000 x $43.37 per share)

Percent Return on Investment=  $4,200 / $43,370 x 100 = 9.68%

4 0
2 years ago
Georgina decides to take a dozen cupcakes to school to sell so she can raise money for her school trip to New Orleans. She price
Naily [24]

Answer:

Shortage

Explanation:

I got it correct because I watched the given recording.

8 0
2 years ago
How much money should i have saved for college life
damaskus [11]

Answer:

100,000$ not even joking

Explanation:

7 0
3 years ago
on a visit to Russia you re offered a dessert that combines sweetened cheese with candied fruit and almonds you' re being served
valkas [14]
You're being served a Pashka
5 0
3 years ago
Find the accumulated value of $2,480 at the end of twelve years if the nominal interest rate was 2% convertible monthly for the
dusya [7]
In order to properly tackle this problem, we must understand the relationship between the nominal annual rate and real (effective) annual rate. 

To do this:
  -First you take the nominal rate, divide by the number of times it's compounded (converted) per year.
   -Then, add one to that number, and raise that number to the power of how many times you compound per year.

Here is the method in practice:
First 3 Years: 
Nominal rate= 2% ÷ 12 times/yr = 0.001667
Effective rate = 1.001667 ^12 = 1.020184

Next 2 Years (Discounting)
3% ÷ 2/yr = .015
1.015 ^ 2 = 1.061364

Next 4 years (Interest)
.042 ÷ .5 (once every 2 years) = .084
1.084 ^ (1/2) = 1.041153

The last 3 years are already expressed as an effective rate, so we don't need to convert them. The annual rate is:
1.058

I kept the 1 in the numbers (1.058 instead of 5.8% for example) so that it's easier to find the final number

Take every relevant number and raise it to the power of the number of years it's compounded for. For discounting, raise it to a negative power.
First 3 years: 1.020184 ^ 3 = 1.061784
Next 2 years: 1.030225 ^ -2 = .942184
Next 4 years: 1.041163 ^ 4 = 1.175056
Last 3 years: 1.058 ^ -3 = .84439

Multiply these numbers (include all decimals when you do this calculation)
1.062 * .942 * 1.175 * .844 = .992598

This is our final multiplier to find the effect on our principal:
.992598 * 2,480 = 2461.64

Answer is 2461.64
6 0
3 years ago
Other questions:
  • How many days will it take for $1500 to earn $16 interest if it is deposited in a bank paying simple interest at the rate of 4%/
    8·1 answer
  • Are there any similarities between the characteristics demanded of an entrepreneur and those of a professional athlete? Would an
    7·1 answer
  • Truman applies for a job at Skylight Canopy Corporation for which he is well qualified, but for which he is rejected. Skylight c
    15·1 answer
  • You invest all the money you earned during your summer sales job (a total of $45,000) into the stock of a company that produces
    12·1 answer
  • Conifer Craft is a furniture firm that specializes in creating customized furniture for the commercial market. The firm has rece
    5·1 answer
  • Kamal, Kamala, Krishna invert a sum of RS= 30,000 on a business in the ratio 2 : 3 : 5. Find the each of their investment.​
    8·2 answers
  • How can manage my budget?
    8·1 answer
  • Which of the following factors, all else being equal, will increase the net present value of cash? 1) increase in reclamation 2)
    7·2 answers
  • New balance, inc. , successfully repositioned its athletic shoes to focus on fit, durability, and comfort rather than competing
    8·1 answer
  • __________ is the function in business that is responsible for acquiring funds for the firm and managing funds within the firm.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!