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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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did the state's denial of unemployment benfitis to Thomas violate the free exercise clause of the first amendement? explain
Marta_Voda [28]

Answer:

NO

Explanation:

The Supreme Court of the United States were of the opinion that beliefs and practices of religious bodies need not be acceptable, rational, or extensive to other people for the protection from the First Amendment to cover them in terms of free exercise of religion. Whether they were right or wrong, the religious conviction of Thomas were open and honest and the conclusion of the Court to transfer him to a place where he was included in weapon manufacture, effectively placed Thomas in a situation where he had to pick one between his religion and his job. The fact that Thomas departed his company was due to the employers decision and thus he inherently deserves unemployment compensation.

5 0
3 years ago
Are you a people person? Do you like to join clubs, help others, give instructions, influence decisions, or plan social events?
Montano1993 [528]

Answer:

Yes I do.

Explanation:

1. Serve others.

2. Plan a community bazar to gain founds and donate them to local foundations with social objetives.

3. Organize a cinema at park festival for help vulnerable population to enjoy and recreate different activities that they normally don't have access to.

4. Go to a geriatric and plan some activities like chess contest, dance and teather to help them to feel distracted of the loneliness for a while at least one a week.

5. Go to visit to somebody and prepared some cookies, talk to that person, listen to and enjoy of a great chat.

6. Paste some motivational notes in random places. (subway, restaurants, public bathrooms).

8 0
4 years ago
Which rehearsal is used to determine how a subordinate leader intends to accomplish the mission?
Nina [5.8K]
The rehearsal used to determine how a subordinate leader intends to accomplish the mission is called back brief (and also briefback).
It refers to the fact that often people don't understand their instructions correctly and they misinterpret them. This is why they will have to repeat their instructions to the person who actually sent them, and the sender will determine whether they understood their instructions correctly or not.
4 0
4 years ago
Ajax Computer Company is an accrual-method calendar-year taxpayer. Ajax has never advertised in the national media prior to this
SOVA2 [1]

Answer: No deduction can be claimed this year.

Explanation:

The options to the question are:

a. No deduction can be claimed this year.

b. $5.50 million

c. $2,500,000

d. $5.50 million only if the professional golf tournament is played before April 15.

Answer:

Since Ajax Computer company is an accrual method calender-year tax payer, the computer company would recognize the expenses only when such expenses are incurred and not at the time that cash is being paid for the the expenses

Ajax computer company already paid in advance for both advertisements the following year even though the advertisement eanst taking place that year. Therefore, the payments will not be considered to be an expense until advertisements has actually taken place. Because of this, Ajax cannot deduct the amounts paid for the advertisements next year and hence, no deduction will be claimed this year.

4 0
3 years ago
The yield to maturity on one-year zero-coupon bonds is 7.4%. The yield to maturity on two-year zero-coupon bonds is 8.4%.
Savatey [412]

The forward rate of interest for the second year is 9.41%.  According to expectations hypothesis, the expected value of the short- term value  of the short term interest rate next year would be 9.41%. The next year's short-term interest rate will be lower.

The explanations and computations are as under:

a. 9.41%

b. According to expectations hypothesis the expected value of the short- term value  of the short term interest rate next year would be 9.41% since the forward rate exceeds the expected value of the short - term interest rate next year

c. Lower

According to the liquidity preference hypothesis, since the forward rate exceeds short- term interest rate next year, so the best guess would be less than 9.41%

Working note

The forward rate (f2) is the spot rate plus earnings as the return from investing in the two - year maturity bond and holding to maturity

<u>(1 + 7.4%) x (1 + forward rate ) = (1 + 8.4%)^2</u>

Solving equation

1.074 x (1 + f2) = 1.175056

f2 = (1.175056 - 1.074) / 1.074

f2 = 9.41%

read more about zero coupon bonds

brainly.com/question/28210321

#SPJ4

6 0
2 years ago
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