According to the random walk theory
A) today's stock price will be related to yesterday's stock price.
B) successive prices of a stock are independent of each other.
C) stock prices can easily be predicted for as much as 52 weeks into the future.
D) stock prices rise and fall in predictable cycles that correspond with the overall business cycle.
B
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Institutions that channel funds from suppliers of financial capital to users of financial capital are referred to as:
A) deposit insurance committees. B) financial intermediaries. C) central banks. D) mutual funds.
If you knew that an investment was going to pay you $1,188,757 in 20 years, and you knew that the annual interest rate over that time would be 2 percent, you could calculate the present value to be:
A. $800,000. B. $1,500,000. C. $905,000. D. $1,000,000.
What would be the amount of deposits D, given that the monetary base MB = $750 billion, the required reserve rate (rD) = 0.1, the excess reserve rate (ER/D) = 0.005, and non-bank currency to deposits (C/D) equaled 1.2?
What will be an ideal response?
Give an example that shows how inefficiency relates to product differentiation for a monopolistically competitive industry.
What will be an ideal response?