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Author Question: Most studies of stock market efficiency suggest that the stock market is highly efficient in the ... (Read 93 times)

frosh101

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on: Aug 7, 2023

Question 1

McLaughlin Inc.’s stock has a required rate of return of 11.8%, and it sells for $72.50 per share. McLaughlin’s dividend is expected to grow at a constant rate of 7.9% per year. What is the expected year-end dividend, D1?

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$2.83


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$3.15


◦

$3.39


◦

$3.62



Question 2

Most studies of stock market efficiency suggest that the stock market is highly efficient in the strong form. Based on these findings, which of the following statements is correct?

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Managers who have inside information that is not available to the public cannot consistently earn abnormal returns, i.e., returns that are higher than those predicted by the SML.


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The stock price for a company has been decreasing for the past 3 months. Based on this information, it must be true that the stock price will also decrease during the current month.


◦

Information you read on a financial website such as Yahoo Finance today can be used to select stocks that will consistently beat the market.


◦

Information disclosed in companies’ most recent annual reports can be used to consistently beat the market.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by frosh101 on Aug 7, 2023

hariet5

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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frosh101

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

pangili4

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Reply 3 on: Yesterday
Wow, this really help

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