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4 years ago

Note whether the following phenomena would be consistent with or a violation of the efficient market hypothesis.

Business

1 answer:

denis-greek [22]4 years ago

4 0

Answer:

D) Stock prices of companies that announce increased earning in January tend to outperform the market in February.

Explanation:

The above is consistent with the Efficient Market Hypothesis. All others are a direct contravention.

<em>The efficient market hypothesis (EMH), also known as the efficient market theory, is a hypothesis that states that the prices of shares contain all information and that consistent alpha generation is impossible.</em>

According to the hypothesis, stocks always trade at their fair value on exchanges, making it impossible for investors to purchase undervalued stocks or sell stocks for inflated prices.

This means that it should not be possible to outperform the overall market through professional stock selection or market timing.

The only way according to EMH that an investor can obtain better returns is by purchasing riskier investments.

By implication, this also means that it is not possible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information.

You would note that in the option D, earning (which is a key driver for demand of stock) is announced in one month. The natural reaction would be for the demand for that stock to surge in the next month.

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Anna [14]

Answer:

It is logical to use this method when overhead resources are consumed by various products in substantially different ways throughout multiple departments.

Explanation:

A departmental overhead rate is considered to be a standard charge based on the units of activity produced by a business segment. Overhead rate at the department level are usually applied in a more refined cost allocation environment, where there is a need to apply overhead cost as precisely as possible.

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3 years ago

mark, a civil engineer, entered into a contract with david. as per the contract, mark agreed to design and build a house for da

juin [17]

Answer:

Unilateral Mistake

Explanation:

In a contract between two parties, a unilateral mistake occurs when one party in the contract makes a mistake regarding cost, the definition of a term or word, or measurement. The outcome of such a mistake is usually a conflict between the two parties. To resolve this problem, the contract could be canceled (if the other party becomes aware of the mistake), or reformed (if only one party is aware of the mistake).

When Mark made a mistake about the cost of building the house for David, he made a unilateral mistake as the mistake was committed by him alone. David's refusal of the amended cost is resulting in a conflict that would likely lead to the cancellation of the contract.

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3 years ago

- - - - - is the fundamental goods or services offered to the consumer

AlexFokin [52]

The answer is core product.
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3 years ago

Intrest paid by the firm to borrow capital is called what??

Yuki888 [10]

Answer:

It is called borrowed capital

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3 years ago

Which type of statement is used to communicate one’s feelings in a nonconfrontational manner?

zmey [24]

Answer:

"I am"

Explanation:

An "I am" is a statement used to communicate one’s feelings in a nonconfrontational manner.

This is because you are communicating what you are. Angry, upset, happy. etc...

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3 years ago