When Maurice Kendall examined the patterns of stock returns in 1953, he concluded that the stock market was __________. Now, these random price movements are believed to be _________.
A. inefficient; the effect of a well-functioning market
B. efficient; the effect of an inefficient market
C. inefficient; the effect of an inefficient market
D. efficient; the effect of a well-functioning market
E. irrational; even more irrational than before
A. inefficient; the effect of a well-functioning market
Random price changes were originally thought to be driven by irrationality. Now, financial economists believe random price changes occur because markets are informationally efficient.
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When planning a presentation on routine information that is 10 minutes or less, which approach should be used?
A) Nonlinear B) Direct C) Storytelling D) Persuasive E) Indirect
Materials used by Jefferson Company in producing Division C's product are currently purchased from outside suppliers at a cost of $10 per unit. However, the same materials are available from Division A. Division A has unused capacity and can produce the materials needed by Division C at a variable cost of $8.50 per unit. A transfer price of $9.50 per unit is negotiated and 30,000 units of
material are transferred, with no reduction in Division A's current sales. How much would Jefferson's total income from operations increase? A) $45,000 B) $120,000 C) $60,000 D) $150,000
Describe the implications of using the Gordon growth model to determine the cost of equity.
What will be an ideal response?
Under the ‘new’ psychological contract, workers exchange performance for continuous learning in order to develop which of the following:
a. marketability b. non-transferable skills c. long-term employment d. contacts