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3 years ago

If it proves possible to make abnormal profits based on information regarding past stock prices, then the market:___________

Business

1 answer:

Alla [95]3 years ago

4 0

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

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Situation 22-4 Joe is the owner-operator of Joe's Haircuts Unlimited. Last year he earned $200,000 in total revenues and paid $1

prisoha [69]

Answer:

Economic profit= $25,000

Explanation:

Giving the following information:

Last year he earned $200,000 in total revenues and paid $125,000 to his employees and suppliers.

Job offer= $50,000 per year

The economic profit takes into account the opportunity cost of other options.

Economic profit= 200,000 - 125,000 - 50,000

Economic profit= $25,000

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3 years ago

The Truth-in-Lending Act gives debtors the right to rescind certain transactions for a period of ______ business days from the d

inysia [295]

Answer:

three

Explanation:

The Truth-in-Lending Act (TILA) applies to home loans. It requires lenders to disclose all costs related to a home loan, provides rescission rights for some transactions, and impose restrictions on home equity credits. But the TILA cannot set the interest rates or other fees charged by the lender, it only requires the lender to disclose the complete information, e.g. APR, monthly payments and amount financed.

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3 years ago

Joanne and ed greenwood built a new barn with an attached arena. to finance the loan, they paid $1,307 interest on $45,000 at 4.

nikitadnepr [17]

Answer: The loan was taken for 265 days.

We arrive at the answer as follows:

First we find the ratio of interest paid to the total loan amount to determine the interest rate:

Interest paid = $1,307

Loan Amount = $45,000

$\frac{Int paid}{Loan amount} = \frac{1307}{45000} = 0.029044444$

Since the interest rate calculated above is less than the annual interest rate at 4%, we conclude that the loan taken was for a period of less than one year.

We can determine the period for which the loan was taken as follows:

Let 'x' be the time for which the loan was taken.

We need to solve for x in the proportion below

0.04 : 365 :: 0.029044444:x

Solving we get,

$\frac{0.04}{365} = \frac{0.029044444}{x}$

$x = \frac{0.029044444 * 365}{0.04}$

$x = 265.0305556$

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3 years ago

I'm selling candy and need tips.

krok68 [10]

I would love to help you! I will talk to you in a PM. Talk to you then : )

4 0

3 years ago

Fashion house uses the retail method to estimate ending inventory in his monthly financial statements the following information

IgorC [24]

If we used the retail method to estimate the ending inventory first we get the given of the problem that can be used in solving.
Given
Sales - 200,000
Goods available for sale - 261,000 (cost) & 450,000 (retail)

First, we need to get the cost of retail ratio. the formula is
Cost to Retail ratio= Cost/ Retail
261,000
CRR= ------------- = 0.58
450,000

Next is to get the ending inventory by following this steps
Cost Retail
Cost of Goods Available for Sale $261,000 $450,000
- Sales $200,000
------------------
Ending Inventory $250,000
x Cost to Retail Ratio .58
------------------
Ending Inventory $145,000

So, the estimated ending inventory for the month of July is $145,000.

4 0

3 years ago