Evidence for and against the efficient market hypothesis

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1. Describe the evidence for and against the efficient market hypothesis.

2. Assume that the six-month Treasury spot rate is 1.6% APR, and the one-year rate is 2% APR, both compounded semiannually. What is the price of a one-year $1,000 par Treasury bond with 2% coupons?

3. Determine the value of retained earnings given the following information: current assets = $650; current liabilities = $120; capital assets = $350; bonds = $430; common shares = $300. please show work.

Reference no: EM131871344

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