This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If capital markets are efficient, then (Read 53 times)

jace

  • Hero Member
  • *****
  • Posts: 541
on: Apr 25, 2021

Question 1

An efficient capital market is one in which
◦ security prices reflect available information.
◦ risky securities offer a positive rate of return to investors.
◦ information is distributed fairly.
◦ after-tax returns are equalized.
◦ prices fluctuate smoothly.

Question 2

If capital markets are efficient, then
◦ there is no reason to believe that prices are too high or too low.
◦ it is not possible to make money by playing the stock market.
◦ prices will adjust slowly when reacting to new information.
◦ historical price trends will give you a good idea of where prices are headed in the future.
◦ it is possible to profit regularly from publicly available information.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jace on Apr 25, 2021

GCabra

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Apr 25, 2021
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.
Answer Preview
Only 56% of students answer this correctly


jace

  • Member
  • Posts: 541
Reply 2 on: Apr 25, 2021
Excellent

AngeliqueG

  • Member
  • Posts: 343
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Species of the algal genus Dinobryon not only photosynthesize, but are also efficient predators of b Species of the algal genus Dinobryon not only photosynthesize, but are also efficient predators of b
(A) A brisk half-moon stroke is an efficient technique to use with the body brush or exfoliation ... (A) A brisk half-moon stroke is an efficient technique to use with the body brush or exfoliation ...
Modern commercial fishing is highly efficient Modern commercial fishing is highly efficient
Natural Capital versus GDP per Capita Natural Capital versus GDP per Capita
A Production Function with Diminishing Marginal Product of Capital A Production Function with Diminishing Marginal Product of Capital
The ability to solve problems may be highly efficient in the older adult The ability to solve problems may be highly efficient in the older adult
Video: Parkinson's Disease

For a complete list of videos, visit our video library