Answer:
a. is weak-form efficient
Explanation:
A weak-form efficient market postulates that the present price of a stock reflects previous all data from past prices.
It suggests that no technical analysis can be of help to the investor.
This implies that fundamental analysis using historical prices and data of a stock can be used to predict stocks that are overpriced or underpriced.
So researching a company's financial statements gives an edge on predicting today's stock price.
Investors can make abnormal profit
The answer is the correct value
<span>To evaluate the accuracy of a measurement, the measured value must be compared to the correct value and you must compare the values of two or more repeated measurements
By doing this, you will have a set of standard to follow to make sure that the result of your research still placed within the scope of standards that accepted by experts in your field, which reduce the likelihood of your result to be considered as invalid.</span>
M1 money growth in the US was about 16% in 2008, 7% in 2009 and 9% in 2010. Over the same time period, the yield on 3-month Treasury bills fell from almost 3% to close to 0%. Given these high rates of money growth, why did interest rates fall, rather than increase? What does this say about the income, price level and expected-inflation effects?
Higher money growth (increase in the money supply) should have the following effects:
Liquidity effect indicates that this growth in money should shift money supply to the right, which should decrease the interest rate.
Income effect indicates that the growth in money should increase income levels, which should increase the demand for money and shift the demand curve to the right. This should increase the interest rate.
The price level effect indicates that the growth in money should increase price levels, which should increase the demand for money and shift the demand curve to the right. This should also increase the interest rate.
During this time period, unemployment was high, economic growth was weak and policymakers were more concerned with deflation than they were with inflation.
Therefore, the expected inflation effect was almost non-existent (due to the concerns with deflation) and the liquidity effect dominated all other effects, which made interest rates fall.
<span>This is illustrated with the first graph on slide 32 of the Theory of Money Powerpoints.</span>
Answer:
center of gravity.
Explanation:
The part of an industry's value chain that is most important to a company and the point where its greatest expertise and capabilities lie is called the company's center of gravity.
Generally, the center of gravity of a company is usually the point at which it started business. The center of gravity of a company defines its strengths, success, achievement and dominant operations.
For any successful business, there is always a center of gravity. This is the point or stage where all of the strategic decisions, greatest expertise, risks management and capabilities lie.
<em>Hence, should there be an error, disagreement or disarray at the center of gravity, then the company is headed for losses and bankruptcy. </em>
