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3 years ago

If markets are efficient, what should be the correlation coefficient between stock returns for two nonoverlapping time periods?

Business

1 answer:

S_A_V [24]3 years ago

7 0

Answer: Zero

Explanation:

The Correlation Coefficient measures the relationship between 2 variables under study and ranges from -1 to +1 which -1 meaning that the two are perfectly negatively correlated and +1 meaning they are perfectly positively correlation. A Correlation Coefficient of 0 means that there is no relationship.

An efficient market is one where all information is available to every market participant. This means that one cannot use information from one period to make abnormal profits in another period because all information is available. The Correlation Coefficient will therefore show 0 because information from the previous period is not being used in another period meaning there is no relationship between stock returns.

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Making sure that data collected on customer trends is organized is one way technology can help a business.

ANTONII [103]

Answer:

True

Explanation:

I would say this statement in TRUE. Here is my reasoning: Data collection is information learned by a business. For example: If you are a moving company and you paid for a TV commercial. Wouldn't you like to know how many people are calling you for moves based on that commercial? Of course. So asking your customers "where did you hear about us?" and hearing "The TV commercial" can identify that not only is your commercial working but that it is paying for itself with the business coming your way. Data collected is a GREAT way to run a business successfully.

4 0

3 years ago

Organizational buying behavior is similar to consumer behavior in some ways and different in others. One key difference is that

4vir4ik [10]

It should be noted that organizational buying behavior is similar to consumer behavior in some ways and different in others.

However, One key difference is that in the organizational buying process is that they use the same five stages in the buying decision process.

<h3>What is decision process?</h3>

Decision process can be regarded as the process that the consumer will go through before deciding to make a purchase.

Learn more about decision process at:

brainly.com/question/14364696

7 0

2 years ago

Kluber, Inc. had net income of $917,000 based on variable costing. Beginning and ending inventories were 56,700 units and 55,400

Nana76 [90]

Answer:

The answer is " $\$235,410$ ".

Explanation:

Variable cost net income $=\$917,000$

Less: Fixed overhead start $56,700\times \$2.10=\$119,070$

Add: Fixed overhead termination $55,400\times $2.10=\$11,6340$

Net revenue at cost of absorption $=\$235,410$

3 0

3 years ago

On January 1, 2017, Marin Company purchased 12% bonds, having a maturity value of $320,000, for $344,260.74. The bonds provide t

kap26 [50]

Answer and Explanation:

The Journal entry is shown below:-

1. Debt Investment Dr, $344,260.74

To Cash $344,260.74

(Being cash paid is recorded)

2. Interest Receivable Dr, $38,400

To Debt Investment $3,973.93

To Interest Revenue $34,426.07

(Being interest received is recorded)

Fair Value Adjustment Dr, $1,713.19 ($342,000 -$340,286.81)

To Unrealized Holding Gain or Loss - Equity $1,713.19

(Being fair value adjustment is recorded)

3. Unrealized Holding Gain or Loss - Equity $7928.68

($335,915.49 - $329,700 + $1,713.19)

To Fair Value Adjustment 7,928.68

(Being unrealized loss or gain is recorded)

Working note

Book value of Interest Interest Amortization Book value

debt beginning Revenue Receivable (d = c - d) of debt

(a) b=(a × 10%) c at the end

($320,000 × 12%) (e - d)

$344,260.74 $34,426.07 $38,400 $3,973.93 $340,286.81

$340,286.81 $34,028.68 $38,400 $4,371.32 $335,915.49

8 0

3 years ago

Net operating income equals: Multiple choice question. dollar sales – dollar sales to break even. unit sales × unit contribution

GalinKa [24]

Net operating income equals (unit sales - unit sales to break even) × unit contribution margin.

What is net operating income?

Real estate professionals utilize the metric known as Net Operating Income, or NOI, to swiftly determine the profitability of a certain venture. After deducting required operational costs, NOI calculates the revenue and profitability of investment real estate property.

Is net operating income the same as profit?

After all, costs have been deducted, operating profit displays a company's earnings, excluding the cost of debt, taxes, and some one-time expenses. Contrarily, net income is the profit that is still left over after all expenses made during the time have been deducted from sales revenue.

Learn more about net operating income: brainly.com/question/14103167

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6 0

2 years ago