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2 years ago

PLS HELPPP FASTTT!!!! Which of the following is not consistent with the efficient market hypothesis?

Business

1 answer:

Morgarella [4.7K]2 years ago

6 0

Answer:

c. News has no effect on stock prices.

Explanation:

A foreign exchange market can be defined as a type of market where the currency of a country is converted to that of another country. For example, the conversion of the United States of America dollars into naira, rands, yen, pounds, euros, etc., at the foreign exchange market.

Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis which states that, asset (share) prices reflect all information and it is very much impossible to consistently beat the market. Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.

According to the efficient market hypothesis, News has an effect on

the prices at which a stock is sold because it affects demand and supply.

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Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. Land A and Buildin

frozen [14]

Answer:

He will not pay any depreciation during October.

Explanation:

Depreciation is charged only on building equipment and machinery. It is not accounted for land as land is an asset whose value does not depreciate over the years.

Depreciation for Building A would be zero for the month of october as depreciation is computed from the first of the month of acquisition to the first of the month of disposition.

The depreciation expense will be computed on 1st of November.

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3 years ago

The Company deposits $6,900 in an account that earns interest at an annual rate of 8%, compounded quarterly. The $6,900 plus ear

astra-53 [7]

Answer:

$8750.87

Explanation:

This is compound interest problem. The formula used to solve this would be:

$F=P(1+r)^t$

Where

F is the future value (what we want, after 3 years)

P is the initial value (given 6900)

r is the rate of interest per period

here, 8% per year, so 8/4 = 2% per period (since compounded per quarter)

t is the time (3 years and compounding per year so times of compounding is 3*4 = 12), so t = 12

Substituting, we get our answer:

$F=P(1+r)^t\\F=6900(1+0.02)^{12}\\F=6900(1.02)^{12}\\F=8750.87$

<u>There will be about $8750.87 at the account at the end of 3 years!</u>

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2 years ago

Carl is unemployed because he was laid off from his construction job when the housing market crashed. this is an example of fric

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cyclical unemployment

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2 years ago

Emma's Electronics Incorporated has total assets of $63 million and total debt of $39 million. The company also has operating

Annette [7]

Answer:

(a) 62%

(b) 3.83 times

Explanation:

(a) Ellie's debt ratio:

= Total Debt ÷ Total assets

= $39 million ÷ $63 million

= 0.62 or 62%

(b) Ellie's times interest earned ratio:

= Interest ÷ EBIT

= $23 million ÷ $6 million

= 3.83 times

If Interest expenses increased to $7 Million, then

Company could easily raise more debt to finance additional funding needs.

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2 years ago

Financial ratios that reflect the degree to which a firm relies on borrowed funds are called ________ ratios. leverage liquidity

Vanyuwa [196]

Leverage would be your answer.

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2 years ago