According to the random walk theory
A) the probability that a stock's price will increase tomorrow is greater if it increased today.
B) the probability that a stock's price will increase tomorrow is greater if it decreased today.
C) the best forecast of tomorrow's price is today's price.
D) the best forecast of tomorrow's price is found by determining the trend for the last five trading days.
Answer: C
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A firm's net worth is equal to the value of its
A) assets minus the value of its liabilities. B) liabilities minus the value of its assets. C) common stock minus the value of its outstanding bonds. D) outstanding bonds minus the value of its common stock.
A nation's monetary base changes when:
a. Central banks swap currencies with each other. b. Funds cross our imaginary line. c. The central bank reduces the reserve requirement. d. All of the above. e. None of the above.
If a 10% decrease in price for a good results in a 20% increase in quantity demanded, the price elasticity of demand is
a. 0.50. b. 1. c. 1.5. d. 2.
Refer to the below table. What is the marginal resource cost if the firm employs a 12th worker?
A. $16
B. $17
C. $18
D. $19