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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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Suppose the economy's production function is ???? = ????K 0.3???? 0.7 . If K = 2000, N = 100, and A = 1, then Y = 246. If K and

densk [106]

Answer:

Y=38.8

Y will increase by 38.8

Y=246+38.8

Y=284.8

Explanation:

Y=A. F(K, L)

Y=A. K^0.3, L^0.7

Then

Y=246

A=1

K=2000

N or L=100

Solutions

200=1(2000^0.3, 100^0.7)

Now the question says both k & N are increased by 0.20

Therefore

Y=1(2400^0.3, 120^0.7)

Y=1(10.3 + 28.5)

Y=38.8

4 0

3 years ago

All of the following statements about exit in monopolistic competition are true, except: Select the correct answer below: When e

Murljashka [212]

Answer:

When economic losses induce firms to leave the industry, demand for the original firm decreases.

Explanation:

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants

When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero

If firms are earning negative economic profit, in the long run, firms leave the industry. This drives economic profit to zero

in the long run, only normal profit is earned

5 0

3 years ago

PLEASE HELP ASAP (EASY)

butalik [34]

Answer:

Explanation:

you're capable of reaching more people with a website

7 0

3 years ago

He offers an annual bonus of $10,000 for superior performance, $6,000 for good performance, $3,000 for fair performance, and $0

Alik [6]

If he offers an annual bonus of $10,000 for superior performance, $6,000 for good performance, $3,000 for fair performance, and $0 for poor performance. Based on prior records, he expects an employee to perform at superior, good, fair, and poor performance levels with probabilities 0.10, 0.20, 0.50, and 0.20, respectively. The expected value of the annual bonus amount will be: $3,700

First step

Expected value for Superior performance=$10,000×0.10

Expected value for Superior performance=$1,000

Expected value for Good performance=$6,000×0.20

Expected value for Good performance=$1,200

Expected value for Fair performance=$3,000×0.50

Expected value for Fair performance=$1,500

Expected value for Poor performance=$0×`1,500

Expected value for Poor performance=$0

Now let determine the total expected value of the annual bonus amount

Expected value of annual bonus amount=$1,000+$1,200+$1,500+$0

Expected value of annual bonus amount=$3,700

Inconclusion if he offers an annual bonus of $10,000 for superior performance, $6,000 for good performance, $3,000 for fair performance, and $0 for poor performance. Based on prior records, he expects an employee to perform at superior, good, fair, and poor performance levels with probabilities 0.10, 0.20, 0.50, and 0.20, respectively. The expected value of the annual bonus amount will be: $3,700

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3 years ago

Under which of the following circumstances may investment bankers review an equity research report prior to publication

Troyanec [42]

(B) To verify the factual accuracy investment bankers review an equity research report prior to publication.

<h3>What are investment bankers?</h3>

A financial institution's investment banker is largely responsible for obtaining cash for firms, governments, or other entities.
The investment banking industry is attractive because it pays handsomely.
Investment bankers must have great verbal and writing communication skills, as well as the ability to work long and demanding hours.
Prior to publication, investment bankers analyze an equities research report to ensure its accuracy.
Large, complex financial transactions are facilitated by investment bankers.
These transactions may include arranging for a client's acquisition, merger, or sale.
Another duty of investment bankers is to issue securities in order to raise capital.

As the description itself says, prior to publication, investment bankers analyze an equities research report to ensure its accuracy.

Therefore, (B) to verify the factual accuracy investment bankers review an equity research report prior to publication.

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Complete question:

Under what circumstances may investment banking personnel review an equity research report prior to publication?

A) To prevent a recommendation that may alienate a client company

B) To verify its factual accuracy

C) Under no circumstances

D) To ensure a favorable recommendation

6 0

2 years ago