Explain why in an efficient market all investments have an expected NPV of zero.
What will be an ideal response?
In an efficient market, prices are 'fair' so the cost of an investment is neither too high nor too low but is equal to the present value of that investment. Thus, on average, investments in that market will yield a zero NPV. Investors receive exactly what they pay for when they buy a security and sellers receive exactly what their securities are worth when they are sold.
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There are two types of management by exception, called
a. management by exception—favoritism; management by exception—rule-based b. management by exception—favoritism; management by exception—reason-based c. management by exception—active; management by exception—passive d. management by exception—routine decision-making; management by exception—non-programmed decisions
Describe a navigation diagram
What will be an ideal response?
What is business analytics?
Which of the following events will release a noncompensated surety from liability?
A. Release of the principal debtor's obligation by the creditor but with the reservation of the creditor's rights against the surety. B. Modification by the principal debtor and creditor of their contract that materially increases the surety's risk of loss. C. Filing of an involuntary petition in bankruptcy against the principal debtor. D. Insanity of the principal debtor at the time the contract was entered into with the creditor.