Answer:
DeBondt and Thaler (1985) found that the poorest-performing stocks in one time period experienced <em>good</em> performance in the following period and that the best-performing stocks in one time period experienced <em>poor</em> performance in the following time period.
Explanation:
DeBondt and Thaler carried out a study that examined stocks of 35 worst and best performing firms over a previous five-year period.The study showed that over the following three-year period, the firms that were previously performing poorly performed better than the former best performing firms, by an average of 25%.This reversal in the fortunes of stocks of firms in the following period is called the Reversal Effect.
Answer:
monetarist approach
Explanation:
Monetarism relates to the school of thought that prioritizes the function of government agencies in regulating the number of resources in circulation in monetary economics. Monetarist theory argues that differences in the currency supply have significant short-term and longer-term impacts on federal output and price rates.
If a country's money supply decreases, business activity will rise, as per monetarist theory; the opposite is also correct. The monetarist philosophy is driven by a standard equation, MV= PQ, in which M will be the money supply, V is just the pace and P refers to the price of commodities, and Q is the sum of commodities.
Answer: Industries have more difficulty opening since they will have to resort to bribes from government people.
Explanation: When corruption is very marked in a country, many people know that the way to obtain benefits is through certain bribes. In the case of industries, in order for them to open they have to resort to bribes made by government personnel to have the opportunity for their construction to take place.
