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koban [17]
3 years ago
5

1) If you make superior returns by buying stocks after a 10% fall in price and selling stocks after a 10% rise, this is consiste

nt with the weak form of EMH. (10points) a. True b. False
Business
1 answer:
zhenek [66]3 years ago
6 0

Answer:

False

Explanation:

It is FALSE that If you make superior returns by buying stocks after a 10% fall in price and selling stocks after a 10% rise, this is consistent with the weak form of EMH.

Weak Form of Efficiency Market Hypothesis states that individuals cannot use past knowledge, facts, or occurrence about stock to determine its future price.

In other words, past data or evidence has no connection with existing market prices.

Hence, if you make superior returns by buying stocks after a 10% fall in price and selling stocks after a 10% rise, that shows the existence of pattern or past information about the stock rising or falling prices determine future occurrence. This situation contradicts the Weak form of EMH

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FinnZ [79.3K]

Answer:

its black? or is it just mine

Explanation:

8 0
3 years ago
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What is one drawback of pure competition compared to monopolies?
frutty [35]

Answer:

D. Pure competition spreads resources between many different

firms.

Explanation:

Pure competition is a market structure with many suppliers and many buyers. All the suppliers sell a homogeneous product. There is intense business competition among the suppliers. Other characteristics of pure competition include

  • There are no dominant suppliers.
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  • Suppliers/firms are price takers.

In pure competition, resources are shared among the many competing firms in the industry, unlike in a monopoly that has only a single supplier. Resources include raw materials and profits.

8 0
3 years ago
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A property is being appraised using the income capitalization approach. Annually, it has an estimated gross income of $48,000, v
lions [1.4K]

Answer:

$368,000

Explanation:

In order to appraise the property using the capitalization approach, we must first determine a net cash flow:

net cash flow = $48,000 - $3,600 - $15,000 = $29,400

Now we calculate the property value using the perpetuity formula:

property value = net cash flow / capitalization rate = $29,400 / 8% = $367,500 which we must round up to $368,000

A property is being appraised using the income capitalization approach. Annually, it has an estimated gross income of $48,000, vacancy and credit losses of $3,600, and operating expenses of $15,000. Using a capitalization rate of 8%, what is the property's value (rounded up to the nearest $1,000)?

4 0
3 years ago
Blackwelder factory produces two similar products-small lamps and desk lamps. the total plant overhead budget is $640,000 with 4
olasank [31]

Answer: b. $188,800 Blackwelder Company will allocates $188,800 to desk lamp production if the actual direct hours is 118,000.

We have the following:

Total Plant Overhead = $640,000

Total Estimated Direct labour hours = 400,000 hours

Actual labour hours for desk lamp = 118, 000 hours

Overhead allocation rate = \frac{Total overhead}{Total estimated direct labor hours}

Overhead allocation rate = \frac{640,000}{400,000}

Overhead Allocation Rate =  $1.6

Factory overhead allocated = Overhead allocation Rate * Actual labour hours [/tex] [tex] Factory overhead allocated = $188,800 (1.6 * 118,000)

3 0
3 years ago
1. The interest tax shield (tax deductibility of interest) is a key reason why: the required rate of return on assets rises when
Ivanshal [37]

Answer:

the net cost of debt to a firm is generally less than the cost of equity.

Explanation:

If we assume both, investor in firms and lender to firms want's a certain return x

because the lender return (the interest) are tax deductible the net cost of debt will be:  x ( 1 - t)

where t is the tax rate being rate beteen 0 and 1

as 1 less a fraction will be less than 1 we can stablish that:

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x is the cost of equity

while x(1-t) is the net cost of debt

therefore, the cost of debt is lower than cost of equity.

7 0
3 years ago
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