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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.

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.

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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Classify the following as either a revenue or a capital expenditure.

Naily [24]

Answer and Explanation:

The capital expenditure is the expenditure which is held for a capital asset i.e fixed assets for improving life, production, etc. It is a one-time expenditure

While on the other hand the revenue expenditure is the expenditure which is incurred on daily basis i.e frequently like repairs, maintenance

So based on the above, the classification is as follows

a. Capital expenditure

b. Revenue expenditure

c. Revenue expenditure

d. Capital expenditure

4 0

3 years ago

Any differences in future development of monozygotic twins can be attributed only to _________ factors.

sergejj [24]

Any differences in future development of monozygotic twins can be attributed only to "environmental factors".


Twins can be either monozygotic or dizygotic. monozygotic refers to the identical twins which means that they develop from one zygote, which splits and forms two embryos. And dizygotic refers to fraternal twins, which means that they develop from two different eggs. In fraternal twins, each twin is fertilized by its own sperm cell.

6 0

3 years ago

Marshall Company purchases a machine for $840,000. The machine has an estimated residual value of $40,000. The company expects t

natka813 [3]

If the units-of-production method is used, the depreciation expense for this period is: $136,000

Explanation:

Given:

Cost of machine= $840,000

Estimated residual value= $40,000

No of units produced during current period= 680,000 units

Expected production by the machine= 4 million units

Unit of production method= cost of asset-salvage value/useful life in the form of units produced

Depreciation per unit= (cost - residual value)/estimated life in units

= (840,000-40,000)/4,000,000

Depreciation per unit= 0.2 per unit

To calculate depreciation for period,

Depreciation for period= depreciation per unit*actual units produced in this period

= .2*680,000

Depreciation for period= $136,000

3 0

3 years ago

ADP reports the following income statement.

oee [108]

Answer:

Forecast of 2020 net earnings = $299.2 million.

Explanation:

Note:

a. See part a of the attached excel file for the calculations of the Historic Percent of Total Revenue.

b. See part b of the attached excel file for the Forecast of ADP’s 2020 income statement.

From part b of the attached excel file, we have:

Forecast of 2020 net earnings = $299.2 million.

Download xlsx

3 0

3 years ago

In year 1000 a man named acholos nemroc celebrated him birthday, turning 100 years old, how old was he in -100?

Over [174]

Answer:

Okay

Explanation:

The answer is jjgxhkdyyffhohohugugojjhyfyffygihhhyghv28283939

3 0

2 years ago