Answer:
D) Stock prices of companies that announce increased earning in January tend to outperform the market in February.
Explanation:
The above is consistent with the Efficient Market Hypothesis. All others are a direct contravention.
<em>The efficient market hypothesis (EMH), also known as the efficient market theory, is a hypothesis that states that the prices of shares contain all information and that consistent alpha generation is impossible.</em>
According to the hypothesis, stocks always trade at their fair value on exchanges, making it impossible for investors to purchase undervalued stocks or sell stocks for inflated prices.
This means that it should not be possible to outperform the overall market through professional stock selection or market timing.
The only way according to EMH that an investor can obtain better returns is by purchasing riskier investments.
By implication, this also means that it is not possible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information.
You would note that in the option D, earning (which is a key driver for demand of stock) is announced in one month. The natural reaction would be for the demand for that stock to surge in the next month.
Answer:
Third one....The interest rate on your savings account will vary over time and be set by the government
Earn interest at a norminal rate.
Answer:
A research process consisits of the following steps;
Step 1: Identify the Problem.
Step 2: Review the Literature.
Step 3: Clarify the Problem.
Step 4: Clearly Define Terms and Concepts.
Step 5: Define the Population.
Step 6: Develop the Instrumentation Plan.
Step 7: Collect Data.
Step 8: Analyze the Data.
According to the above steps, conducting interviews with witnesses would be step 7 : Collecting Data of the research process. Interviewing to gather information which can later be analyzed in order to reach to a comprehensive solution.
What is the question you are asking
Answer:
$704,000
Explanation:
As we know that
Costs of goods sold = Beginning inventory + purchase made - ending inventory
$720,000 = $200,000 + purchase made - $188,000
So, the purchase would be
= $708,000
Now the cash payment would be
= Beginning balance of accounts payable + purchase - ending balance of accounts payable
= $80,000 + $708,000 - $84,000
= $704,000
