Answer:
The correct answer is option D.
Explanation:
The efficient market hypothesis is a theory in modern financial economics which states that the share prices reflect all available information and alpha generation is impossible. Neither fundamental nor technical analysis can give excess returns which are also risk-free.
Share prices in an efficient market reflect all the information, both public and private. This information includes future predictions. All this information is widely available to all the investors and they correctly interpret this information and quickly adjust to it.
Answer:
a. Mortgage fraud
b. Since Maria will not be able to make her payments, she will most likely default on her loan payments. When she defaults on her loan payments, the cost of credit rises. One can however, sue the lender for mortgage fraud. If found guilty in a court of law, they will be punished for fraud.
Explanation:
a.
Fraud in basic terms means a deliberate omission or misrepresentation of facts for the purpose of deceives others. Mortgage fraud there for means a deliberate misrepresentation or omission of facts by a lender to a borrower with malicious financial intent to the borrowers. Any form of mortgage fraud is a criminal offense that is punishable in a court of law, since it usually involves huge amounts of money. An example is the mortgage scam that occurred in Sacramento, Calif where seven people were convicted in a $10 million mortgage scam in early 2019. Most people who fall victim to mortgage scams are not financially literate and there for they easily agree to the loan agreement without necessarily reading and understanding the loan agreement.
Financial literacy can be defined as a proficiency in financial principles like; financial planning, debt management and financial investments with the aim of being financially stable. Financial illiteracy can be defined as lacking financial principles and skills to make sound financial decisions.
In our case, Maria being financially illiterate fell victim to mortgage fraud since she signed a loan agreement that she did not quite understand. The lenders also committed a fraud since they knew that Maria did not understand the agreement but they did not educate her properly to ensure that she knew exactly what she was signing up for. This was a clear act of misrepresentation with the aim of fraud.
b.
Since Maria will not be able to make her payments, she will most likely default on her loan payments. When she defaults on her loan payments, the cost of credit rises. One can however, sue the lender for mortgage fraud. If found guilty in a court of law, they will be punished for fraud.
Answer:
0.54
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
Midpoint change in quantity demanded = change in quantity demanded / average of both demands
change in quantity demanded = 100 - 95 = 5
average of both demands = (100 + 95) / 2 = 97.5
Midpoint change in quantity demanded = 5 / 97.5 = 0.051282
midpoint change in price = change in price / average of both price
change in price = $11 - $10 = 1
average of both price = ($11 + $10) / 2 = 10.5
midpoint change in price = 1 / 10.5 = 0.095238
Price elasticity of demand = 0.051282 / 0.095238 = 0.54
Answer:
very good morning dear...
have a NYC day ahead... :)
Answer:
The total supply can be found by adding individual supply functions as follows:
Qa+Qb = Q
Q = -2+p+0.5p
Q= -2+1.5p where p = $44 therefore;
Q= -2+1.5(44)
Q= 64
Total supply at p = $15
Q= -2+15(1.5)
Q= 20.5
