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Gnom [1K]
3 years ago
5

If traders in a market have rational​ expectations, then A. prices of riskier assets are higher than prices of less risky assets

. B. the price of an asset equals its fundamental value. C. past prices of assets do not affect market​ participants' expectations of future asset prices. D. they make use of less information than they would if they had adaptive expectations.
Business
1 answer:
cricket20 [7]3 years ago
7 0

Answer:

B. the price of an asset equals its fundamental value.

Explanation:

  • If the traders in the market have a rational expectation then the price of the asset is equal to the fundamental values and if a stocks is trading at a price at its fundamental values then the investor will be making a rational expectation.
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A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year
Anna71 [15]

Answer:

18.49%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be calculated using a financial calculator:

Cash flow in year 0 = –$28,500

Cash flow in year 1 = $12,500

Cash flow in year 2 = 15,500

Cash flow for year 3 = $11,500

IRR = 18.49%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

5 0
4 years ago
Read 2 more answers
Dublin Inc. had the following common stock record during the current calendar year: Outstanding-beginning of year 2,600,000 Addi
larisa86 [58]

Answer:

The correct answer is 3,175,300.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the number of shares by using following formula:

Number of shares = [ Outstanding + ( Additional share × Months) + ( Additional share × Months)] × 1+Dividend

By putting the value, we get

= [2,600,000 + (280,000 × 6/12) + (280,000 × 3/12)] × 1.13

= [ 2,600,000 + 140,000 + 70,000 ] × 1.13

= 3,175,300

4 0
3 years ago
Ian and Harriet divorced in 2017. Their son, Preston, is age 10 and has lived with Ian for the last two years. The divorce decre
Eddi Din [679]

Harriet is the person that can claim the earned income credit because the divorce decree gives Harriet the right to claim Preston as a dependent.

<h3>What the law on divorce states</h3>

The law on divorce or separation decree states that the noncustodial parent may claim the dependent even when there is no written declaration from the custodial parent.

Other explanation includes:

  • The parent who the child spends the most time with may claim the dependent.
  • If only one of the taxpayers is the child’s parent, that parent may claim the dependent.

In conclusion, Harriet is the person that can claim the earned income credit because the divorce decree gives Harriet the right to claim Preston as a dependent.

Read more about income credit

<em>brainly.com/question/13522402</em>

3 0
2 years ago
Read 2 more answers
Statement 1: "In the game of chicken, two teen agers had cars and were directed to drive as fast as they could at each other and
Jlenok [28]

Answer:

Statement 2 is true and 1 is false  ( C )

Explanation:

From the statements given above we can deduce that statement 2 is true while statement 1 is false and this is because there isn't one pure Nash Equilibrium in a pure strategy game that will solve the game as portrayed in statement 1, instead there will be two(2) pure Nash equilibrium.

3 0
3 years ago
When the Fed buys bonds in open-market operations, it _______the money supply. If the Fed reduces the reserve requirement, the m
Brums [2.3K]

When the Fed buys bonds in open-market operations, it increases the money supply. If the Fed reduces the reserve requirement, the money supply increase as well.

When the Fed increases the interest rate it pays on reserves, the money supply will <u>reduce</u>. When the FOMC increases its target for the federal funds rate, the money supply will <u>reduce</u>.

If bankers decide to hold more excess reserves because they are fearful of bank runs, the money supply reduce. All the above scenarios are activities that can occur when the Federal Government is using Monetary Policy.

<h3>What is monetary policy?</h3>

Monetary policy is a collection of acts designed to govern a country's total money supply and promote economic growth.

<h3>What  are Bonds?</h3>

A bond is a fixed-income product that reflects an investor's debt to a borrower (typically corporate or governmental).

A bond may be regarded of as an I.O.U. between the lender and the borrower that includes the loan information and payments.

Learn more about bonds at;

brainly.com/question/2054375

#SPJ1


7 0
2 years ago
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