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Butoxors [25]
3 years ago
13

The concept of market efficiency underpins almost all financial theory and decision models. When financial markets are efficient

, the price of a security—such as a share of a particular corporation’s common stock—should be____the present value estimate of the firm’s expected cash flows discounted by its appropriate rate of return (also called the intrinsic value of the stock).
Almost all financial theory and decision models assume that the financial markets are efficient. The informational efficiency of financial markets determines the ability of investors to "beat" the market and earn excess (or abnormal) becomes available. Financial theorists have identified three levels of informational efficiency that reflect what information is incorporated in stock prices.
Consider the following statement, and identify the form of capital market efficiency under the efficient market hypothesis based on this statement.
Current market prices reflect all relevant publicly available information.
This statement is consistent with:_____.
A. Strong-form efficiency.
B. Weak-form efficiency.
C. Semistrong form efficiency.
Consider that there is a semistrong-form of efficiency in the markets.
A pharmaceutical company announces that it has received Federal Drug Administration approval for a new allergy drug that completely prevents hay fever The consensus analyst forecast for the company's earnings per share (EPS) is $4.50, but insiders know that, with this new drug, earnings will increase and drive the EPS to $5.00. What will happen when the company releases its next earnings report?
A. There will be some volatility in the stock price when the earnings report is released: it is difficult to determine the impact on the stock price.
B. The stock price will not change, because the market already incorporated that information in the stock price when the announcement was made.
C. The stock price will increase and settle at a new equilibrium level.
Business
1 answer:
Phantasy [73]3 years ago
8 0

Answer:

sry I don't know the answer

sry

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Romeo grabbed Sara under the mistletoe at the office Christmas party and kissed her. Sara did not want to be kissed by Romeo; sh
solniwko [45]

Answer:

battery

Explanation:

Battery is the crime that occurs when a person physically assaults another person, while assault is threatening that person with physical assault, but not actually doing it.

Sara would claim against Romeo for battery because Romeo did grab her, mistletoe her, and kiss her. In other words, Romeo established unwated physical contact with Sara, he did not simply threaten her to do so, or hinted at doing so.

6 0
3 years ago
Why did the framers of the u.s. constitution separate powers and provide for a system of checks and balances?
Scorpion4ik [409]

The framers of the US constitution separate powers and provide for a system of checks and balances in order to guard against a tyrannical government where one particular branch would have too much power.

<h3>What are the functions of the 3 branches of government.</h3>

Apart from the delegate duties that these three branches have in the government, the way that the framers created them was to ensure that they were able to check each other. They provided checks and balance for each other.

The executive had the power to call the other two to other and so also doe the judiciary and the legislative arm of the government so that the people would not experience a dictatorship.

Read more on the constitution framers here: brainly.com/question/1087677

#SPJ4

7 0
2 years ago
Which of the following statements is FALSE?A) Without trading, the portfolio weights will decrease for the stocks in the portfol
Hoochie [10]

Answer: The correct answer is "A) Without trading, the portfolio weights will decrease for the stocks in the portfolio whose returns are above the overall portfolio return.".

Explanation: The statement "A) Without trading, the portfolio weights will decrease for the stocks in the portfolio whose returns are above the overall portfolio return." is FALSE, because it is the opposite, that is Without trading, the portfolio weights will <u>increase</u> for the stocks in the portfolio whose returns are above the overall portfolio return.

8 0
3 years ago
Julie is a hair stylist. she makes $10.25 an hour, plus $6 extra for every haircut she performs. This week she worked a total of
Natasha_Volkova [10]

Answer:

$686

Explanation:

Equation:

Total money earned  = 10.25y + 6x

y = total hours

x = number of haircuts

Factoring in the numbers the Equation now is:

Total money earned = 10.25 (40) + 6 (46)

Total money earned = $686

4 0
2 years ago
Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45. The cost of the goods sold was $24,500. Abbey C
larisa [96]

Answer:

b. $7,972

Explanation:

The computation of the amount of the gross profit earned is shown below:

But before that we have to do the following calculations

Net sales = $35,000 - $3,600 = $31,400

Merchandise cost = $24,500 - $1,700 = $22,800

Discount allowed= $31400 × 2% = $628

Now

Gross profit earned  is

= $31,400 - $22,800 - $628

= $7,972

5 0
3 years ago
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