Answer:
The correct answer is letter "A": Even if a market is semi-strong-form efficient, an investor could still earn a better return than the market return if he or she had inside information.
Explanation:
The semi-strong efficiency of the market is part of the Efficiency Market Hypothesis (EMH) that states <em>changes in stock prices can be predicted as the result of all available information provided to investors</em> instead of using fundamental or technical analysis. Thus, "beating the market" could be a matter of chance and not skill.
Then, <em>investors could still beat a semi-strong-form efficient market compared to a market in which investors could obtain (somehow) insider information.</em>
Answer:
The correct answer for option (a) 0.98 and 1.04 and for option (b) is Boulder Location.
Explanation:
According to the scenario, computation of the given data are as follows:
A). We can calculate the present value index by using following formula:
Present value index = Total present value of net cash flow ÷ Amount to be invested
Present value index Ft. Collins = 607,600 ÷ 620,000 = 0.98
Present value index Boulder = $624,000 ÷ $600,000 = 1.04
Fort Collins has 0.98 present value index and boulder has 1.04 present value index.
B). Boulder location should be chosen according to the analysis. Because boulder has the 1.04 present value index which is greater than 1 while fort Collins has value less than 1.
Answer:
D) zone of tolerance.
Explanation:
Zone of tolerance: It defined as the service acceptance level of the customer beyond which the customer does not tolerate the service. it is an area between desired service and acceptable service, the acceptable service is the standard service in the market, which is made by advertisements and other communication sources.
In the given case, Nicole is able to deliver the acceptable service to the customer instead of being understaffed as she knows customer´s "zone of tolerance" before going elsewhere.
Answer:
A well-respected chairman of the Federal Reserve Bank suddenly resigns
Explanation:
A non-diversifiable or systematic risk, is a risk which is common to a whole market or class of investments and not just limited to just a particular company or investment.
Non-systematic risk is a risk common to just an investment or a company.
If the chairman of the Federal Reserve Bank suddenly resigns, it would affect a wide range of investments in the market and not just a company, which is an example of a non-diversifiable risk.
Answer: Code of ethics
Explanation:
The code of ethics is one of the principle in an organization that helps in guiding the various types of core values and the standards of the firm for making the various types of decisions.
The main purpose of the code of ethics is that it helps in providing the various types of ethical guideline to the members of a organization for providing the various types of core values. It is one of the type of document that helps in outline the main mission and also the core values of an organization.
According to the given question, the code of ethics is typically addressing the contribution to the various types of government officials, record the customers and the supplier relations accurately.
Therefore, Code of ethics is the correct answer.
