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2 years ago

If the efficient market hypothesis is true, price changes are independent and biased. Group of answer choices

Business

1 answer:

Yuri [45]2 years ago

5 0

Answer:

Price changes are independent but not biased in efficient market hypothesis.

Explanation:

In simple words, the efficient-market hypothesis asserts that asset prices represent all relevant knowledge. Because market rates must only respond to fresh knowledge it is difficult to continuously "beat the market" on something like a risk-adjusted approach.

Thus the given statement is partially true.

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As indicated in the chapter, return on investment (ROI) is well entrenched in business practice. However, its use can have negat

Juliette [100K]

Answer:

ROI = net profit / total investment

1. What is the current return on investment (ROI) being realized by your division

ROI = $625,000 / $4,150,000 = 15.06%

2. What would happen to the near-term ROI of your division after adding the effect of the new investment?

ROI = ($625,000 + $50,000) / ($4,150,000 + $550,000) = 14.36%

If you carry out the new project the ROI of your division will decrease.

3. As manager of this division, given your incentive compensation plan, would you be motivated to make the new investment?

Even though the new project's return (9.1%) is considered acceptable by upper management, you will probably reject it since it will decrease your division's total ROI. When managers are assigned bonuses based on certain achievements, reducing your profitability ratio will probably result in no bonus.

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3 years ago

Henson company applies overhead on the basis of 120% of direct labor cost. job no. 190 is increased with $140,000 of direct mate

DaniilM [7]

The total manufacturing costs for the Job No. 190 is 470,000. To get its direct labor cost, which is the basis of the Henson Company in applying its overhead at the rate of 120%, we need to divide the manufacturing overhead of $180,000 by the rate 120% to get the direct labor cost of 150,000. (180,000/210% = 150,000). To get the total manufacturing cost, you need to add the:direct materials- 140,000direct labor- 150,000manufacturing overhead- 180TOTAL= 470,000- this is the total manufacturing costs (Job No. 190)

8 0

3 years ago

13. Which of the following is NOT used to describe the state of an economy?

Anni [7]

Answer:C.TINSTAAFL Rating

Explanation:

7 0

3 years ago

Alice worked for Fountain Valley, Inc., a corporation that manufactured baby supplies. According to her employment contract with

earnstyle [38]

Question Completion with Answer Options:

A. Yes, according to the terms of her contract.

B. Yes, according to the duty of good faith and fair dealing.

C. No, according to the at-will termination provision in her contract.

D. No, because subsequent conduct of the parties modified the contract.

Answer:

Fountain Valley, Inc. and Alice

B. Yes, according to the duty of good faith and fair dealing.

Explanation:

Alice is entitled to the bonus of $10,000 because the duty of good faith and fair dealing requires Fountain Valley not to deny Alice the benefits arising from their valid contract. Since Alice's employment contract included a 5% bonus of all sales in excess of the previous 12 months' sales, the Fountain Valley, Inc. should not deny Alice's claim to the benefits.

b) Employment contract terms = $78,000/year plus 5% bonus of all sale in excess of the previous 12 months' sales. The value of sales in 2017 is $200,000 more than in 2016. 5% of $200,000 = $10,000. Therefore, Alice is entitled to the bonus.

8 0

2 years ago

In March 2007March 2007, the U.S. unemployment rate was 4.44.4 percent. In August 2008 August 2008, the unemployment rate was

eimsori [14]

Answer:

A Recession happened.

Explanation:

When the market sees a recession we see an increase in the unemployment rate due to cyclical unemployment whenever there in a business cycle even though the labor force was constant but in a recession companies face a lot of costs which become higher than their revenue so for example when there is a recession the cost of producing 1 more unit is actually higher than the revenue a firm gets from producing that 1 unit because marginal cost increases at a decreasing rate so they have to lay off people at a firm on that unit of production to maximize revenues.

7 0

3 years ago