Suppose the McCormick Corporation releases an earnings report that fails to meet the market's expectations. What does the efficient markets hypothesis predict will happen to McCormick's stock price?
The efficient markets hypothesis predicts worse-than-expected news will lower a company's stock price. Therefore, we would expect McCormick's stock price to fall.
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What is the standard deviation of the payoff from an investment that yields $5,000 with a probability of 0.15 and $500 with a probability of 0.85?
A. $0 B. $2,581,875 C. $42.50 D. $1,606.82
A soft-drink bottling company supplies six-packs of orange flavored soda to retailers for a price of $2 each. If the components in each six-pack costs the bottling company $1.50, the value added, to each six-pack, by the bottling company is:
a. $2.00. b. $1.50. c. $1.25. d. $1.00. e. $0.50.
If a larger percentage of Americans attended college, the wage premium would probably
A. continue rising. B. continue falling. C. rise. D. fall.
The unemployment rate can increase when
A. the proportion of 18-22 year olds that go to college increases. B. the number of unemployed workers increases. C. the size of the military increases. D. the number of job finders increases.