The efficient market theory would be violated if investors earned extraordinary returns months after a company announced unexpected profits. Thus, the correct option is (d.) Investors earn abnormal returns months after a firm announces surprise earnings.
<h3>What exactly is the hypothesis of an efficient market?</h3>
The efficient-market hypothesis is a financial economics concept that asserts asset prices represent all available information. Because market prices should only react to fresh information, it is impossible to continually "beat the market" on a risk-adjusted basis.
Because the EMH is expressed in terms of risk adjustment, it can only offer testable predictions when combined with a specific risk model. As a result, financial economics research has focused on market anomalies, or departures from specified risk models, since at least the 1990s.
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Answer:
Her contribution was $300 and total contribution was $1,800
Explanation:
Gross Domestic Product is the value of goods and services which is produced or performed in the specific period. The value included in the GDP is the gross value of sales minus the costs associated to make it. In this question they made $40 per day it means they earned the return of $40 per day after deducting all the expenses from sales amount.
So, total contribution will be
Total = $40per day x 45 days = $1,800
Her contribution = $1,800 / 6 = $300
Answer:
Felix Incorporated
Exchange of Preferred Stock for Land:
Journal Entries:
Debit Land $90,000
Credit Preferred Stock $81,250
Credit Additional Paid-in Capital - Preferred Stock $8,750
To record the issue of 1,250 of $65 par-value preferred stock for land with a fair price of $90,000.
Explanation:
Felix Incorporated will debit Land with the fair price of $90,000 and Credit the Preferred Stock account with $81,250 (1,250 x $65) at par-value. The difference between the fair price of land and the preferred stock at par-value is credited to additional paid-in capital account for preferred stock. Felix Incorporated cannot take into account the current market value of the stock at $75 in its accounting records. The current share price of $75 is for the benefit of investors, and can only serve as basis for Felix Incorporated to decide transactions with potential investors.
Answer:
The answer is option A) John's injuries will not be covered under workers' compensation because of his negligence.
Explanation:
Employers are usually required to carry workers' compensation insurance, which helps employees who have sustained a work-related injury recover monies spent to treat the injury.
The types of injuries covered by workers' compensation are those which can be connected in some way to an employment requirement or condition.
John's injuries will not be covered under workers' compensation since there is a standing order to avoid using the forklifts.
John's injury which happened as a result of holding forklift races during their lunch hour at the warehouse where they work will not be covered by the company.
Answer:
lithium and chlorine
potassium and oxygen
Explanation:
Ionic compound are chemical compound held by electrostatic forces known as ionic bonding. Ionic compound, their is transfer of electron. One atom of element lose electron while the other atom gain electron. The ions involve in bonding are known as cations and anions.
The cations loses electron to become positively charged while the anion receive electron to become negatively charged. An ionic compound possess an anion and a cations. The electronegativity difference between the atom that go into bonding is widely different.
The best option is the bonding between lithium (cations) and chlorine(anions) and potassium(cations) and oxygen(anions).
The bonding is usually between a metal and a non metal.
Li + and Cl- → LiCl
K+ and O2- → K2O
