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andriy [413]
3 years ago
9

Which of the following contradicts the proposition that the stock market is weakly efficient?A. Over 25% of mutual funds outperf

orm the market on average.B. Insiders earn abnormal trading profits.C. Every January, the stock market earns above-normal returns.D. Applications of technical trading rules fail to earn abnormal returns.
Business
1 answer:
Arisa [49]3 years ago
5 0

Answer:

The correct answer is letter "C": Every January, the stock market earns above-normal returns.

Explanation:

Inside the Efficient Market Hypothesis or EMH, we can find the term "weak from efficiency" that states past price action do not influence the current stock price or it is not useful in order to predict future price movements. According to the same concept, the use of technical analysis or the suggestions of financial advisers is useless.

In that sense, option letter "C" indicates that <em>every January the stock market earns an above-normal return</em>, which clearly reflects that there is a repeated pattern in the stocks affecting their price during that specific month, something impossible to take place according to what "weak from efficiency" establishes.

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_________ is a condition in which inflation is increasing, at a decreasing rate.
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Disease is the awnser I believe it depends what subject
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4 years ago
An investment property generates a cash flow of $550,000 and has a ROI of 12%. What is the value of the property assuming the nu
S_A_V [24]

Answer:

$4,583,000

Explanation:

The computation of the value of the property is shown below:

We know that

Return on investment = Operating Income ÷ Average Operating Assets

12% = $550,000 ÷ Average Operating Assets

So, the average operating assets would be

= $550,000 ÷ 12%

= $4,583,000

We simply applied the return on investment formula so that the approximate amount can arrive

7 0
3 years ago
which of the following statements is true with regard to best operating level? group of answer choices in underutilization, aver
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When it comes to the best operating level, all of the above are correct.

The <u>best operating level</u> is where all resources are being utilized effectively and marginal revenue is equal to marginal cost. If there resources are not being utilized effectively, the following will happen:

  • Average unit cost increases as a result of underutilization - the units available are not being utilized effectively which means that the company is incurring more cost than it should per good produced.

  • Average unit cost increases as a result of overutilization - units are being overused which is forcing the company to incur expenses to replace the overused resources.

At the <u>best operating level</u> however, average cost will be at a minimum because the goods are being used effectively and efficiently.

In conclusion, it is best for a business when they operate at an efficient operating level.

<em>Find out more at brainly.com/question/13912123.</em>

3 0
3 years ago
The market shares of the top five firms in the dishware industry are 18%, 32%, 11%, 14%, and 8%. What is the four-firm concentra
stiv31 [10]

Answer:

75%

Explanation:

Calculation to determine the four-firm concentration ratio for the dishware industry

Four-firm concentration ratio =18%+32%+11%+14%

Four-firm concentration ratio=75%

Therefore the four-firm concentration ratio for the dishware industry is 75%

4 0
3 years ago
As an adjustment to operating expenses per the income statement, an increase in accrued liabilities would be added to operating
timofeeve [1]

Answer:

This is a true or false type of question as shown in the attached document.

The correct answer is false

Explanation:

The question was whether the statement on the treatment of increase in accrued liabilities as highlighted in the question is true or false.

In determining the cash payments for operating expenses , increase in accrued liabilities is deducted not added to operating expenses.

This is a case of single entry accounting system where the business does not operate based on the principle of double entry,instead transactions are recorded one-sided.

The justification is that the increase in accrued liabilities is a portion of the current period expenses not yet paid for,as a result,it would be necessary to deduct it from total expenses in order to ascertain the  remaining portion of the expenses already settled with cash.

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5 0
3 years ago
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