Weak form efficiency is best defined as a market where current prices are based on A. totally rational decisions. B. historical prices. C. information known to any person or organization. D. all publicly available information. E. irrational decisions by amateur investor

Answers

Answer 1

Answer:

Answer: E

Explanation:

Weak form efficiency advocates that past price movements, earnings and volume data does not affect the price of stock and therefore cannot be used in the prediction of its future direction.

Weak form efficiency is also called random walk theory. It states that the prices of future securities are random and past events does not affect the prices. Advocates believe every information needed can be found in the stock prices and there is no need for past information. It is an irrational decision by amateur investors.

Answer 2

Answer:

Answer:

The correct answer is letter "B": historical prices.

Explanation:

American Economist Eugene Fama (born in 1939) proposed the Efficient Market Hypothesis (EMH) stating that it is impossible to beat the market. There are three types of EMH: The Weak, Strong, and Semi-Strong EMH. The Weak form of the EMH suggests that current stock prices reflect all the data of past prices and technical analysis is useless to predict stock price fluctuations.

Related Questions

The records of Cullumber’s Boutique report the following data for the month of April. Sales revenue $106,300 Purchases (at cost) $51,500 Sales returns 2,100 Purchases (at sales price) 88,500 Markups 10,100 Purchase returns (at cost) 2,100 Markup cancellations 1,700 Purchase returns (at sales price) 3,000 Markdowns 9,800 Beginning inventory (at cost) 17,564 Markdown cancellations 2,900 Beginning inventory (at sales price) 42,500 Freight on purchases 2,600. Compute the ending inventory by the conventional retail inventory method.
The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 320,000 $ 40 B 420,000 45 C 520,000 10 D 720,000 15 The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals $40,000. There are 6 million shares outstanding. What is the net asset value of the fund
Melissa sold some of her Bitcoin in 2021 for a $200,000 long-term capital gain, bringing her total taxable income to $450,000. What is the tax on this capital gain if she files her return as Head of Household?
Two firms, A and B, each currently dump 50 tonnes of chemicals into the local river. From now on both firms will require a pollution permit for each tonne of pollution dumped into the river. The government gives each firm 20 tonnes’ worth of pollution permits, which it can either use or sell to the other firm. It costs Firm A $100 for each tonne of pollution that it eliminates before it reaches the river, and it costs Firm B $50 for each tonne of pollution that it eliminates before it reaches the river. What is likely to happen?
Evergreen Company sells lawn and garden products to wholesalers. The company’s fiscal year-end is December 31. During 2021, the following transactions related to receivables occurred:Feb. 28 Sold merchandise to Lennox, Inc., for $10,000 and accepted a 10%, 7-month note. 10% is an appropriate rate for this type of note.Mar. 31 Sold merchandise to Maddox Co. that had a fair value of $7,200, and accepted a noninterest-bearing note for which $8,000 payment is due on March 31, 2022.Apr. 3 Sold merchandise to Carr Co. for $7,000 with terms 2/10, n/30. Evergreen uses the gross method to account for cash discounts. 11 Collected the entire amount due from Carr Co. 17 A customer returned merchandise costing $3,200. Evergreen reduced the customer’s receivable balance by $5,000, the sales price of the merchandise. Sales returns are recorded by the company as they occur. 30 Transferred receivables of $50,000 to a factor without recourse. The factor charged Evergreen a 1% finance charge on the receivables transferred. The sale criteria are met.June 30 Discounted the Lennox, Inc., note at the bank. The bank’s discount rate is 12%. The note was discounted without recourse.Sep. 30 Lennox, Inc., paid the note amount plus interest to the bank.Required:1. Prepare the necessary journal entries for Evergreen for each of the above dates. For transactions involving the sale of merchandise, ignore the entry for the cost of goods sold.2. Prepare any necessary adjusting entries at December 31, 2021. Adjusting entries are only recorded at year-end.3. Prepare a schedule showing the effect of the journal entries on 2021 income before taxes

4Select the correct answer.
What is the term for protection that guarantees payment to you in the event of financial loss?
Ο Α.
claim
B.
insurance
C.
premium
Reset
Next

Answers

it would be B.insurance

A company is considering the purchase of a new machine for $49,000. Management predicts that the machine can produce sales of $16,100 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $7,900 per year including depreciation of $4,100 per year. Income tax expense is $3,280 per year based on a tax rate of 40%. What is the payback period for the new machine?

Answers

Answer:

7.47 years

Explanation:

Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.

= amount invested / cash flows

To derive cash flow: (S - C - D) x (1 - t) + D

S = sales = $16,100

C = Cost of goods sold = $7,900

D = deprecation = $4,100

T = tax = 40%

$16,100 - $7,900 - $4,100 = $4100

$4100 × 0.6 = $2460

$2460 + $4,100 = $6560

$49,000 / $6560 = 7.47 years

I hope my answer helps you

The expected average rate of return for a proposed investment of $5,610,000 in a fixed asset, using straight-line depreciation, with a useful life of 20 years, no residual value, and an expected total net income of $16,830,000 over the 20 years is (round to two decimal points). a.15.00% b.30.00% c.1.50% d.60.00%

Answers

Answer:

b.30.00%

Explanation:

Calculation to determine what the expected total net income of $16,830,000 over the 20 years is

Expected total net income =($16,830,000/20)/($5,610,000/2)*100

Expected total net income=$841,500/$2,805,000

Expected total net income =30.00%

Therefore the expected total net income of $16,830,000 over the 20 years is 30.00%

On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $88,000. A total of $4,000 was paid for installation and testing. During the first year, Milton paid $6,000 for insurance on the equipment and another $2,200 for routine maintenance and repairs. Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $8,000. During Year 1, the equipment produced 13,000 units. What is the amount of depreciation for Year 1?

Answers

Answer:

The depreciation expense for Year 1 is $9880

Explanation:

The cost of equipment to be recorded in the books is the price at which it was purchased and the cost incurred to bring it to intended use that is the installation cost. Thus, the cost of the equipment in the books will be recorded as,

Equipment = 88000 + 4000 = $84000

The insurance and maintenance are recurring expenses and are not capitalized.

The depreciation rate under units of production method is,

Depreciation rate = (cost - salvage value) / estimated useful life in units

Depreciation rate = (84000 - 8000) / 100000 = $0.76 per unit

The depreciation expense for Year 1 = 0.76 * 13000 = $9880

Answer:

$10,920

Explanation:

Cost of equipment = List price of equipment + Cost of installation and testing

$88,000 + $4,000 = $92,000

Salvage value = $8,000

Depreciation cost of equipment = Cost of equipment - salvage value

$92,000 - $8,000 = $84,000

Estimated unit of production = 100,000 units

Year 1 units produced = 13,000 units

Depreciation = $84,000 * 13,000 / 100,000

= $10,920

With respect to the WBS numbering system, which of the following statements is true? A. The numbering system is a unique identifier known as the code of accounts, which is used to track the costs of the WBS elements. B. The numbering system is a unique identifier known as the code of accounts, which is used to track time and resource assignments for individual work elements. C. The numbering system is a unique identifier known as the WBS dictionary, which is used to assign quality control codes to the individual work elements. D. The numbering system is a unique identifier known as the WBS dictionary, which is used to track the descriptions of individual work elements.

Answers

Answer:

Explanation:

A contingent deferred sales charge is commonly called a ____.

Answers

front end load, hope this helped :)

Other Questions

Companies prepare direct labor budgets to ________. avoid labor shortages determine the direct labor-hours per unit ensure timely supply of raw materials reduce inventories

On January 1, 2017, Garzon purchased 6% bonds issued by PBS Utilities at a cost of $40,000, which is their par value. The bonds pay interest semiannually on July 1 and January 1. For 2017, prepare entries to record Garzon's July 1 receipt of interest and its December 31 year-end interest accrual. (Do not round your intermediate calculations.)

<11{1[2(06)06]}> Reporter: A new campaign finance reform bill being considered by Congress would limit the amount of campaign contributions that political candidates can receive. However, a survey of candidates running for mayor, governor, and senate seats shows that not one of them favors the bill. Clearly, there is no desire among politicians to limit campaign contributions. Which one of the following points out the flaw in the reporter’s argument above?

Calculate the current account balance if a small country exports $200 million in goods and services and imports $160 million, it receives $80 million in foreign aid and private charity (net), it pays $15 million to foreign citizens working locally, and its own citizens earn $36 million abroad.