Which of the following is true of efficient-market hypothesis?
A) Securities are typically in disequilibrium, meaning they are fairly priced and their expected returns are more than their required returns.
B) Insider trading scandals have proven that stocks are not fully and fairly priced; as a result, it would be worthwhile for investors should spend time searching for mispriced (over- or under-valued) stocks.
C) At any point in time, security prices fully reflect all internal information available about the firm and its securities, and these prices are insensitive to new information.
D) Since stocks are fully and fairly priced, it follows that investors should not waste their time trying to find and capitalize on miss-priced (undervalued or overvalued) securities.
D
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. Discuss different types of reflection and explain how the skill of reflection relates to the other entrepreneurial skills.
What will be an ideal response?
Which of the following is an example of an informal contract?
A. a recognizance B. a lease C. a letter of credit D. a check
Crashing costs for a project are governed by the function:
50t2 + 100t where t represents the number of days crashed (see graph). The project manager wants to crash the project, and is willing to pay up to $1,000 per day saved. How many days can be saved before the per-day cost is too high?
Packard Corporation reported taxable income of $1,000,000 in 20X3 and paid federal income taxes of $340,000. Included in the taxable income computation was a dividends received deduction of $5,000, a net capital loss carryover from 20X2 of $10,000 utilized in 20X3, and gain of $50,000 recognized on the collection of cash from an installment sale that took place in 20X1. The corporation's current E&P for 20X3 would be:
A. $675,000. B. $625,000. C. $1,015,000. D. $965,000.