True or False: The efficient markets hypothesis holds only if all investors are rational. Current market prices reflect all relevant publicly available information.
Answers
The given statement "The efficient markets hypothesis holds only if all investors are rational. Current market prices reflect all relevant publicly available information" is false.
The efficient markets hypothesis (EMH) is a theory that asserts that financial markets are efficient in processing and reflecting all available information. It suggests that it is difficult, if not impossible, to consistently achieve above-average returns through trading or investment strategies based on publicly available information. In other words, the EMH implies that current market prices accurately reflect the true value of a security.
Contrary to the statement, the efficient markets hypothesis does not depend on the rationality of all investors. It assumes that market participants act in their own self-interest and use all available information to make rational decisions. However, it recognizes that not all investors may possess the same level of information or have equal analytical capabilities. Therefore, the hypothesis still holds even if not all investors are rational.
The key idea behind the EMH is that any new information that becomes available is quickly and accurately reflected in the prices of financial assets. This implies that it is difficult for investors to consistently outperform the market by trading based on public information alone. If the hypothesis were true, it would suggest that it is challenging to gain a sustainable advantage through stock picking or market timing strategies.
In conclusion, the efficient markets hypothesis does not require all investors to be rational. It asserts that current market prices already incorporate all relevant publicly available information, regardless of the rationality of individual investors.
For more such questions on hypothesis, click on:
https://brainly.com/question/10951662
#SPJ8
Related Questions
Which climate zone with a long growing season and wet winters used to have native americans living along the gulf coast and southeast atlantic coast?
Answers
The Humid subtropical with a long growing season and wet winters used to have native Americans living along the gulf coast and southeast Atlantic coast.
The Atlantic coast has a humid subtropical climate that stretches to the Gulf of Mexico. Summers are too hot and humid, and winters are too chilly or warm in Subtropical Humid regions. Summers have an abundance of daylight, whereas winters are too cold, with temperatures dropping to single digits and sometimes below freezing. This type of climate is mostly found along the coasts of South America. The level of rainfall or humidity mostly in climate is high in such areas.
To learn more about the humid subtropical region: brainly.com/question/28154014
#SPJ4
fractional reserve lending"" what does this mean.
Answers
Answer:
It means that they lend a loan with a reserve that is less than the amount they lend.
What is the craziest drink you've gotten at starbucks or dunkin? Tell me the size, how many pumps of syrups (if you get any) and how many scoops of inclusions (if you get any). Tell me everything and be very specific!
Answers
Peppermint Frappé ( Seasonal ) with 17 pumps of peppermint !!!
HELP PLS
In the hospitality and tourism industry, assets are
A) areas that are off limits to guests such as managerial offices or staff room areas
B) when more rooms, seats, or tickets than available are booked to offset guests who do not show up
C) reasons to visit an area such as attractions, restaurants, and hotels in a specific region
D) when guests are offered a better room, seat, or situation than what they booked
Answers
Answer:
C
Explanation:
What are equity investments
Answers
Hope this helps
Answer:
equity investment is money that is invested in a company by purchasing shares of that company in the stock market.
Explanation:
These shares are typically traded on a stock exchange.
Define Red Gross Society.
Answers
Answer: The Indian Red Cross Society is a voluntary humanitarian organization to protect human life and health based in India.
Explanation: It is part of the International Red Cross and Red Crescent Movement, and so shares the Fundamental Principles of the International Red Cross and Red Crescent Movement.
After analyzing your menu, you find that food sales are $1,200 and beverage sales are $800. Your average gross margin for food and beverage is 67%. Which is more profitable, food or beverage
Answers
Answer:
Food is more profitable
Explanation:
The formula for calculating the gross margin ratio is as below.
Gross margin ratio= gross profit/ net sales.
Therefore, gross profit= net sales x gross profit ratio
in this case:
The gross profit ratio is 67%
gross profits from food sales
=1200 x (67/100)
=$804
Gross profit from beverages
=$800 x ( 67 /100)
=$536
Gross profit from food sales is higher than that of beverages
Food is more profitable
Answer:
C. Cant tell from the data
Explanation:
Companies purchase inventory that is primarily in finished form and ready for resale to customers.a. Trueb. False
Answers
The given statement "Companies purchase inventory that is primarily in finished form and ready for resale to customers" is true because Companies purchase inventory that is primarily in finished form and ready for resale to customers, such as goods that have already been manufactured and packaged for sale.
Inventory refers to the goods that a company has on hand and available for sale to customers. Companies typically purchase inventory that is already in finished form and ready for resale, rather than raw materials or unfinished goods that require further processing. Examples of finished goods inventory include products that have been manufactured, packaged, and are ready for shipment to customers.
For companies that engage in retail sales, finished goods inventory is a critical component of their business operations, as it allows them to meet customer demand and generate revenue. Effective inventory management is essential for ensuring that a company has the right products available at the right time, while minimizing costs and reducing the risk of excess or obsolete inventory.
To learn more about inventory, here
https://brainly.com/question/14184995
#SPJ4
Liabilities are economic resources that are expected to benefit the business in the future. is it true
Answers
No, that statement is not true. Liabilities are not economic resources that are expected to benefit the business in the future.
Liabilities are obligations or debts that a business owes to external parties. They represent the company's financial obligations or commitments that arise from past transactions or events. Liabilities typically require the business to make future payments or provide goods or services in the future to settle the obligations. Examples of liabilities include loans, accounts payable, accrued expenses, and deferred revenue. While liabilities are important in the financial structure of a business, they do not represent economic resources that are expected to benefit the business. Instead, they represent the company's obligations and claims on its assets.
Learn more about accrued expenses here:
https://brainly.com/question/14724818
#SPJ11
calculate the percentage by mass of all the components element in sodium trioxonitrate(v)
Answers
Sodium =27.05
Nitrogen=16.47
Oxygen=56.46
Conider the market for grain in a Wet African nation. Suppoe the United Nation initiate a program to ditribute free grain to houehold in that Wet African nation. The immediate effect of the UN grain ditribution program on houehold and farmer in the Wet African nation would be to
Answers
Distributing the free grains to households in wet African regions by the united nations, it would drive the price up.
What are the objectives of the United Nations?The United States is an international organization made up of 51 states that were founded with the goals of promoting social progress, a greater standard of living, and human rights in addition to preserving world security and peace.
Which three nations don't belong to the UN?Taiwan, Kosovo, and Vatican City are the only three nations in the world that are unable to join the UN. The UN views Taiwan and Serbia as being a component of China and Serbian, respectively, rather than as sovereign states.
To know more about the united nations visit:
https://brainly.com/question/9763405
#SPJ4
Explain about the problem solving skill?
Answers
Answer:
Problem solving skills refers to our ability to solve problems in an effective and timely manner without any impediments. It involves being able to identify and define the problem, generating alternative solutions, evaluating and selecting the best alternative, and implementing the selected solution.
Rafael is the accounts receivable clerk for a large company. On many occasions, customers come personally to the company to pay their accounts in cash. Rafael would sometimes borrow cash from the money he collected from customers for his own use with the intention of paying it back when he gets paid at the end of the week. Answer the questions below:
Answers
Answer:
The internal controls of the company are weak.
Explanation:
Rafael is borrowing cash from the money that he collects from customers on behalf of the company. He borrows the money and intends to pay back later to the company without informing anyone. This is weakness of internal control in the company system as there is no one who can check back whether Rafael has paid back money that he borrowed or not.
M Steak, an online specialty retailer that serves the southern California region market with its gourmet black-haired wagyu steak from its website. The steak is priced at more than $300 per pound. As a result, M Steak caters to only gourmet food enthusiasts (foodies) who purchase regularly for their own consumption, and other customers (non-foodies) who purchase less frequently as holiday gifts. M steak is contemplating the purchase of a customer list from a list broker for $10 per name. The company will send each person on the list a full-color catalog, which costs the company $10 to produce and $1 to mail every month for a year. Generally, such a customer list results in a response rate of approximately 15% for foodies; that is, 15% of the customers who receive an unsolicited catalog in this manner will make a purchase. On the other hand, the response rate for non-foodies is at 25%. After a year, those who do not purchase the product will be removed from the mailing list while the remaining customers continue to receive catalogs every month. Their foodie customers will make on average four purchases per year with an average order size of $200. Foodies usually have an annual retention rate (the percentage of customers who will continue to make purchase the next year) of 85%. The non-foodies will only make two gift purchase per year with an average order size of $250. The retention rate for non-foodies is only 65%. M Steak ships its product in a sealed containers filled with dry ice to preserve the meat freshness. It is able to make 50% margin from its foodie customers and 60% from its non-foodie customers. M Steak assumes a 9% discount rate for its time value of the money. Please answer the following four questions using an Excel spreadsheet (i. Clearly write down your answer to each of the following four questions in your spreadsheet; ii. Show your work with necessary steps for the analysis.): 1. How much is the acquisition cost for each type of customers? (5 points) 2. How long will it take M Steak to break even considering all their customers? (6 points) 3. M Steak considers that the customer lifetime has ended when the NPV of the annual net profit dips below $50. How much is the customer lifetime value for each type of customers? (6 points) 4. M Steak believes that the customer lifetime is 6 years for foodies and 3 years for non-foodies. If that is the case, should M Steak purchase the customer list from the list broker, and why? (8 points)
Answers
To answer the questions, we'll perform various calculations using the provided data. I'll break down each question and guide you on how to approach it in an Excel spreadsheet.
Acquisition Cost for Each Type of Customer:
Foodie Customers:
Cost per name: $10
Response rate: 15%
Acquisition cost = Cost per name / Response rate
Non-Foodie Customers:
Cost per name: $10
Response rate: 25%
Acquisition cost = Cost per name / Response rate
Break-Even Time:
Calculate the net profit generated from each customer type and the associated costs.
Determine the cumulative net profit each month and find the month when it becomes positive (break-even point).
Customer Lifetime Value:
Calculate the net profit generated from each customer type over the customer lifetime.
Determine the present value (PV) of the net profit using the discount rate of 9%.
Customer Lifetime Value = PV of Net Profit
Decision on Purchasing the Customer List:
Compare the Customer Lifetime Value with the cost of acquiring the customer list. If the Customer Lifetime Value exceeds the acquisition cost, it is favorable to purchase the list.
Please note that due to the complexity and calculations involved, it would be more convenient to perform these calculations directly in a spreadsheet software like Excel.
To know more about Profit visit-
brainly.com/question/15228306
#SPJ11
Creating an online website what are good ideas to help me brainstorm
Answers
A few ideas for the website are:
An easy-to-update CMSResponsive designHelpful navigationStrong brand identityContact informationSecurity featuresthe bureau of economic analysis collects data on the size of the us economy. the most widely followed measure of the size of the economy is the gross domestic product, which attempts to measure the value of all goods and services produced in the us in a given year. the spreadsheet below summarizes the data for 2004-2014.
Answers
Option c.The GDP is trending upwards is BEST supported by the data in the spreadsheet.
The required details about GDP is mentioned in below paragraph.
Gross home product (GDP) is a monetary degree of the marketplace cost of all the very last goods and offerings produced and sold (now no longer resold) in a particular term via way of means of countries.Due to its complicated and subjective nature this degree is frequently revised earlier than being taken into consideration a dependable indicator. GDP (nominal) in line with capita does now no longer, however, mirror variations in the fee of dwelling and the inflation rates of the countries; therefore, the use of a foundation of GDP in line with capita at shopping energy parity (PPP) can be greater beneficial while evaluating dwelling standards among nations, even as nominal GDP is greater beneficial evaluating countrywide economies at the global marketplace.Total GDP also can be damaged down into the contribution of every enterprise or area of the economy.The ratio of GDP to the overall populace of the location is the in line with capita GDP (additionally known as the Mean Standard of Living).
(COMPLETE QUESTION)
The Bureau of Economic Analysis collects data on the size of the US economy. The most widely followed measure of the size of the economy is the Gross Domestic Product, which attempts to measure the value of all goods and services produced in the US in a given year. The spreadsheet below summarizes the data for 2004-2014.
Year Gross Domestic Product
2004 13,774
2005 14,234
2006 14,614
2007 14,874
2008 14,830
2009 14,419
2010 14,784
2011 15,021
2012 15,369
2013 15,710
2014 16,086
Note: Billions of dollars, adjusted for inflation, 2009 dollars.
Which of the following is BEST supported by the data in the spreadsheet?
A.The GDP is larger every year.
B.The GDP will never go above 20 trillion dollars.
c.The GDP is trending upwards.
D.The GDP only falls during even years.
To learn about GDP visit here.
https://brainly.com/question/1383956
#SPJ4
have my points uf7ttg vgh
Answers
Answer:
thanks
Explanation:
1) The heart beats approximately ________ times each day. A) 1,000 B) 10,000 C) 100,000 D) 1,000,000 E) 10,000,000
Answers
Pretend the first quarter statistics of 2022 show the US economy has an increase in inflation of 8.4%. In the first quarter, GDP has increased by 4.2% annual rate, and the unemployment rate is falling and hit 3.5%. As an economic advisor to the Federal Reserve, what advice would you give to Jerome Powell with regards to the tools of monetary policy. Write a paragraph explaining your recommendations, describing how three of the four tools (your choice which ones you use) will work to change aggregate demand and affect the other economic indicators listed above. Be sure to describe what needs to be done with each tool and the outcome it will produce.
Answers
There are a few important economic elements that can affect aggregate demand. Decisions made by consumers and businesses will be impacted by rising or lowering interest rates. A rise in household wealth boosts overall demand, while a loss typically results in a decrease.
What aggregate demand impact to the economic indicators?There are a few significant economic elements that can impact aggregate demand. Consumer and corporate decisions will be impacted by rising or lowering interest rates. A rise in household wealth boosts overall demand, while a loss typically results in a decrease.
Therefore, The changes along the aggregate demand curve are mostly caused by price. The actual money supply shrinks as the price level rises, which forces an increase in interest rates.
Learn more about economic indicators here:
https://brainly.com/question/20264817
#SPJ1
Cain Company reports net cash provided by operating activities of $35,000. It also reports the following information under “Adjustments to reconcile net income to net cash provided by operating activities” on its statement of cash flows (using the indirect method).
Answers
It can be seen from the solutions given that Cain's net income is $24,000.
Here is the solution:Net income = Net cash provided by operating activities - Adjustments
= $35,000 - $6,000 - $10,000 + $4,000 + $7,000 + $4,000
= $24,000
Therefore, Cain's net income is $24,000.
Here is a breakdown of the adjustments:
To determine cash flow from operations, it is necessary to include the gain on equipment sales in the net income as it is a non-cash entry.
A rise in accounts receivable implies that customers are prolonging payment of their invoices, resulting in decreased cash flow from the company's activities.
The depreciation expense is classified as a non-cash expense, hence it must be included in the calculation of cash from operations by adding it back to the net income.
A decrease in inventory indicates that the company is experiencing faster turnover of its inventory, leading to increased cash flow generated by its operations.
A rise in prepaid expenses denotes that the company is channeling more funds towards prepaid expenditures like insurance and rent, implying a reduced cash inflow from its operational activities.
A decline in the amount of wages that the company owes indicates that it is not promptly compensating its workforce. Consequently, this implies that the company's operational cash flow is reduced.
Read more about net income here:
https://brainly.com/question/28390284
#SPJ1
A purely competitive firm is currently in short-run equilibrium and its MC exceeds its ATC at its current output level. It can be concluded that
A. Firms will leave the industry in the long run
B. The firm is realizing an economic profit
C. The firm is suffering an economic loss
D. The firm will shut down in the short run
Answers
C. The firm is suffering an economic loss.
In a short-run equilibrium, a purely competitive firm's marginal cost (MC) exceeding its average total cost (ATC) indicates that the firm is incurring additional costs to produce each unit of output compared to the average cost per unit. This implies that the firm is not operating efficiently. If the firm continues producing at its current output level, it will be generating revenue that is insufficient to cover its total costs, resulting in an economic loss.
Therefore, the correct conclusion is that the firm is suffering an economic loss (option C).
To learn more about economic loss, Visit:
https://brainly.com/question/14797787
#SPJ11
Why were the Middle Colonies economically successful?
Answers
The Middle Colonies, which include New York, Delaware, Pennsylvania, and New Jersey, were economically successful due to their diverse economy and natural resources.
These colonies had a diverse economy, which included agriculture, manufacturing, and trade. The fertile soil allowed for the growth of cash crops such as wheat, corn, and tobacco. They also had access to navigable rivers that were used for transportation, and this allowed for easy trading with other colonies and with Europe. The Middle colonies also had abundant natural resources like timber, coal and iron ore, which allowed them to develop manufacturing and shipbuilding industries. Additionally, the diverse population and religious tolerance in these colonies attracted many skilled and enterprising immigrants, which further helped to boost their economy.
To know more about Middle Colonies click below:
https://brainly.com/question/18021081#
#SPJ11
What is the beta of a three-stock portfolio that includes 25% of stock A with a beta of 0.90, 40% stock B with a beta of 1.05, and 35% stock C with a beta of 1.73
Answers
Answer:
the beta of a three-stock portfolio is 1.25
Explanation:
The computation of the beta of a three-stock portfolio is shown below:
= 25% of .9 + 40% of 1.05 + 35% of 1.73
= .225 + .42 + .61
= 1.25
Hence, the beta of a three-stock portfolio is 1.25
The same should be considered and relevant
The fact that multiple generations often work together in family businesses provides which of the following advantages? A) They will have equal skills with technology B) Family dynamics will play a part in business relationships C) perspectives of diverse clients are more likely to be taken into consideration D) Family members from different generations are more likely to get along
Answers
Answer:
Explanation: B) Family dynamics will play a part in business relationships.
A diffraction grating has a width of 3.5 cm and has 1000 lines/cm. Could this diffraction grating be used to resolve the lines of the sodium doublet to the first order
Answers
Yes, the diffraction grating with a width of 3.5 cm and 1000 lines/cm can be used to resolve the lines of the sodium doublet to the first order. The ability to resolve these lines depends on the grating's resolving power, which is determined by the product of the number of lines illuminated (N) and the order (m). In this case, N = 3.5 cm x 1000 lines/cm = 3500 lines, and m = 1 for the first order. The resolving power is sufficient to separate the wavelengths of the sodium doublet, allowing for clear resolution.
To determine if this diffraction grating can resolve the lines of the sodium doublet to the first order, we need to calculate the angular separation of the lines using the equation θ = λ/d, where θ is the angle of diffraction, λ is the wavelength of light, and d is the spacing between the grating lines.
The sodium doublet has two wavelengths, 589.0 nm and 589.6 nm. Using the given information, we can calculate that the spacing between the grating lines is 0.001 cm. For the 589.0 nm wavelength, the angle of diffraction is 33.38 degrees. For the 589.6 nm wavelength, the angle of diffraction is 33.24 degrees. The angular separation between the two lines is therefore 0.14 degrees.
Since this angular separation is easily within the resolution of the first order, this diffraction grating can indeed be used to resolve the lines of the sodium doublet to the first order.
To know more about sodium doublet visit :
https://brainly.com/question/22731711
#SPJ11
Drag each tile to the correct box.
Sequence the correct steps that an accountant needs to follow for recording transactions.
record the transaction as an entry in the
journal
obtain the source document and verify its authenticity
prepare the trial balance
make adjustment entries
post the entry into a ledger
Answers
The correct steps that an accountant needs to follow for recording transactions: obtain the source document and verify its authenticity, record the transaction as an entry in the journal, post the entry into a ledger, prepare the trial balance, and make adjustment entries.
What is accounting procedure?Accounting procedures are standardized processes that are used within the accounting department to perform a function.
An accounting procedure is intended to perform a function efficiently while incorporating adequate controls to reduce the risk of loss. A procedure can also be created as a training tool for employees, who can read the document to learn about a new job.
The accountant must first obtain the source document and verify its authenticity, and then post into journal and ledger. Then the trial balance is prepared and the accounts are closed with the necessary adjustment entries.
Therefore, the correct steps that an accountant needs to follow for recording transactions is given above.
To learn more about accounting procedure, click here:
https://brainly.com/question/20847758
#SPJ1
How would one establish a petty cash fund for $500?
A. Have the CFO write a check to the company.
B. Write a check and make it out to cash for $500.
C. Write a check to the custodian for $500.
D. Have the custodian write a check to the company.
Answers
Answer:
Explanation:
It's B
What is it called when businesses are doing poorly and stock prices drop?
Answers
Answer:
When a stock price falls, that means the company must sell additional shares of stock to raise the same amount of proceeds
Explanation:
What are the four parts of the SWOT analysis?
Answers
Answer:
Strengths, Weaknesses, Opportunities, and Threats
Explanation:
Answer:
Strengths, Weaknesses, Opportunities, Threats. AKA. SWOT.
Explanation:
A SWOT analysis is a technique for assessing these four aspects of your business.
manufactures a sugar product by a continuous process, involving three production departments-Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $360,000, $147,000, and $96,400, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $32,000, and work in process at the end of the period totaled $28,200.
Answers
The cost of goods manufactured is $607,200 in words.
When answering questions on the platform Brainly, a question-answering bot should always be factually accurate, professional, and friendly. The bot should be concise and not provide extraneous amounts of detail. The bot should ignore any typos or irrelevant parts of the question.What is the cost of goods manufactured?The formula for calculating the cost of goods manufactured is given below:
Direct Materials + Direct Labor + Factory Overhead = Total Manufacturing CostTotal Manufacturing Cost + Beginning Work-in-Process Inventory – Ending Work-in-Process Inventory = Cost of Goods ManufacturedTherefore, the cost of goods manufactured for the Refining Department is:
Total Manufacturing Cost = Direct Materials + Direct Labor + Factory Overhead= $360,000 + $147,000 + $96,400 = $603,400Beginning Work-in-Process Inventory = $32,000Ending Work-in-Process Inventory = $28,200Cost of Goods Manufactured = Total Manufacturing Cost + Beginning Work-in-Process Inventory – Ending Work-in-Process Inventory= $603,400 + $32,000 – $28,200= $607,200Thus
To learn more about:goods manufactured
https://brainly.com/question/27858520
#SPJ11