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kolezko [41]
3 years ago
11

Describe the events that occur in an efficient market in response to new information that causes the expected return to exceed t

he required return. What happens to the market value
Business
1 answer:
nadya68 [22]3 years ago
7 0

Answer:

The efficient market hypothesis tells, in an equilibrium, the price of stocks or security is an unbiased estimate of the true values.

Explanation:

  • Thus, in the equilibrium,  of security prices are neither an overvalued nor are undervalued. Suppose the investors learn new information about the company that suggests there stock is worth more than the current price.  
  • The security gets undervalued expected return exceeds the required return. Increased in demand for security from the investors with this new information will thus bid up the market value plus reduce its expected return until they are equal.

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The following are some of the steps in the accounting cycle. Which of the following reflects the steps in the correct order? Fin
lukranit [14]

Answer:

The correct answer is:

  1. Journalized business transactions are posted to the ledger.
  2. An unadjusted trial balance is prepared.
  3. Financial statements are prepared.
  4. Closing entries are journalized and posted to the ledger.
  5. A post-closing trial balance is prepared.

Explanation:

The following phases or stages are distinguished in the accounting process or cycle:

  1. Initial situation balance.
  2. Accounting opening.
  3. Record of the operations of the year.
  4. Periodification
  5. Adjustments prior to the determination of the benefit - or loss - generated in the year.
  6. Balance check sums and balances.
  7. Calculation of the result.
  8. Accounting closing.
  9. Annual accounts.
  10. Distribution of the result.
7 0
3 years ago
Data concerning Wang Corporation's single product appear below: (Do not round your intermediate calculations.)
Kipish [7]

Answer:

The break-even in monthly dollar sales is closest to $215,000

Explanation:

The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:

Break-even point in units = Fixed expense/(Selling price per unit-Variable expense per unit) = $144,050/($230.00 - $75.90) = 935 units

The break-even in monthly dollar sales = 935 x $230.00 = $215,000

5 0
3 years ago
In an efficient market, prices appear to move randomly becauseA) investors do not process new information correctly.B) only new
Gennadij [26K]

Answer:

Correct answer is B.

Explanation:

B is correct. In the Strong-form efficient market hypothesis, all public and private information is reflected in prices and it is impossible for anyone to outperform the market. Only new information affects stock prices, but then, this new information is processed correctly and reflected in the price of an asset so fast before anyone can act on it. As a result, the price action becomes totally unpredictable and prices appear to move randomly.

6 0
3 years ago
Is the number of children a couple must have in order to insure that the population neither increases nor decreases?
avanturin [10]
I think it is 2. Hope this helps
4 0
3 years ago
Pension Plan Entries Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its
Andrej [43]

Answer:

December 31

Dr Pension expense $182,100

Cr Unfunded pension Liabiltiy $182,100

January 15

Dr Unfunded pension Liabiltiy $182,100

Cr Cash $182,100

Explanation:

Preparation of the entry to record the accrued pension liability payment to the funding agent on January 15

December 31

Dr Pension expense $182,100

Cr Unfunded pension Liabiltiy $182,100

(Being to record quarterly pension Liabiltiy)

January 15

Dr Unfunded pension Liabiltiy $182,100

Cr Cash $182,100

( Being to record the accrued pension liability payment to the funding agent)

5 0
2 years ago
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