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viktelen [127]
3 years ago
10

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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Indigo Corporation had a projected benefit obligation of $3,386,000 and plan assets of $3,617,000 at January 1, 2020. Indigo als
Mars2501 [29]

Answer:

Amortized to pension expense $21,600

Explanation:

Compututation of Indigo’s minimum amortization of the actuarial loss

Amortization

Projected benefit obligation($3,386,000)

Plan assets $3,617,000

Corridor percentage10%

Corridor amount $361,700

Accumulated loss $528,020

Excess loss subject to amortization $166,320

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Average remaining service 7.70

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3 years ago
Fred Stone is an employee of Henrock Company. During the first part of the year, Stone earned $4,340 while working in State Q. F
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Answer:

$280

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5 0
4 years ago
Callers should not be left on hold for longer than ________ minute(s). one two three four
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3 years ago
Assume you have an AMEX card which pays a 2% cash rebate on all purchases, and a VISA card which pays a 1% cash rebate on all pu
Fiesta28 [93]

Answer:

The gas at station A is $0.02 per gallon more expensive

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Data provided in the question:

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The gas at station A is $0.02 per gallon more expensive

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4 years ago
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