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3 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]3 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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What are 3 benefits of the Pay down credit card feature in Quickbooks Online?

enot [183]

Answer:

b or e

Explanation:

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3 years ago

Ultimate Sportswear has $150,000 of 8% non-cumulative, non-participating, preferred stock outstanding. Ultimate Sportswear also

Natali [406]

Answer:

c. $12,000 preferred: $23,000 common

Explanation:

Calculation of how the Dividend should be distributed

First step is to calculate for preferred stock outstanding

Preferred stock outstanding=$150,000 * 8% non-cumulative

Preferred stock outstanding=$12,000

Second step is to calculate for common stock outstanding

Using this formula

Common stock outstanding = Cash Dividend-Preferred stock outstanding

Let plug in the formula

Common stock outstanding=$35,000-$12,000

Common stock outstanding=$23,000

Therefore Preferred stock outstanding will be $12,000 while Common stock outstanding will be $23,000

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3 years ago

The individuals or households that want goods and services for personal consumption or use, and have the resources to buy them a

olga nikolaevna [1]

The individuals or households that want goods and services for personal consumption or use, and have the resources to buy them are part of the consumers

<h3>Who are the consumers?</h3>

Consumers are known as the end users of any produced goods and services. They are crucial in the logistics chain in order to keep production running.

They are the set of individuals that want goods and services for their daily use and consumption purposes.

Learn more on consumers here: brainly.com/question/1213062

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2 years ago

Alex was sent to Beijing to help local managers solve the problem of growing worker dissatisfaction at their manufacturing facil

Ilya [14]

" There is an unequal distribution of power in the company " best explains this situation

Explanation:

Inequity is the almost inevitable result of two strong forces:

human bias and socioeconomic injustice.

One may debate whether or not power imbalances and other social inequalities induce bias.

(Even though the notion of a single variable approach to these debates encourages most of us, the truth is more complex; each one strengthens the other and this always results in a chicken and egg debate.)

Unfairness and discrimination can also be found interchangeably with everyday terminology.

I presumption a difference here: the definition of the word 'inequality' and the control of the expression 'inequity.' Inequality contributes to the allocation of such products, some of which earn more than others. Inequity stretches into this: not just unequal allocation; disproportionate and unjust allocation.

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3 years ago

Working off an 16% margin, with markups based on cost, the Food Co-op Club boasts that it has 4,100 members and a 155% increase

Komok [63]

Answer:

Explanation:

31% mark up based on cost

$100 * 1.31 = $131

Same mark up based on selling price

$131 - $100 = $31

Therefore, our percent mark up if selling price were the base; =$31/$131 * 100 = 23.66%

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3 years ago