How would you respond to the following comments

Assignment Help Finance Basics
Reference no: EM13301042

How would you respond to the following comments?

a. "Efficient market, my eye! I know lots of investors who do crazy things."
b. "Efficient market? Balderdash! I know at least a dozen people who have made a bundle in the stock market."
c. "The trouble with the efficient-market theory is that it ignores investors' psychology."

 

Reference no: EM13301042

Questions Cloud

Conflict between manufacturing and sales : 1.  Using the concepts learned in this chapter; analyze the nature of the conflict between manufacturing and sales. Try to identify the sources of conflict and ascertain how far the conflict has gone.
Find the angular velocity of the platform with its load : A 84.3-kg horizontal circular platform rotates freely with no friction about its center at an initial angular velocity of 1.67 rad/s. Find the angular velocity of the platform with its load
What is the price paid to the bondholder : what is the price paid to the bondholder if the issuer calls the bond? (Round your answer to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign in your response.)
What is the angle of refraction within the diamond : A laser-beam is fired through the air into a solid block of diamond (don't ask where we got it, it's a secret). What is the angle of refraction within the diamond
How would you respond to the following comments : How would you respond to the following comments?
Find the price p/e ratio of the firm : Castles in the Sand generates a rate of return of 20% on its investments and maintains a plow back ratio of .30. Its earnings this year will be $4 per share. Investors expect a 12% rate of return on the stock.
Compute the index of refraction of the glass : Light in vacuum is incident on the surface of a glass slab. In the vacuum the beam makes an angle of 41.5° with the normal to the surface, What is the index of refraction of the glass
Difference between past and present working conditions : Part 1. Describe systemPart 2.Difference between past and present working conditions (how system and technology help's improving things)Part 3. Analysis Talk about- Weather the system that organisation is using is to 1. Generate revenue or 2. reduce ..
Explain the main ethical dilemmas in the case study : Briefly explain the main ethical dilemmas in the case study and compare and contrast the utilitarian, libertarian, deontological and virtue ethics perspectives on the dilemma(s) you have identified.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculation of net present value and adoption of project

Calculation of net present value and adoption of project based on NPV and the firm's current cost of capital is estimated to be 11 percent.

  What is percy cost of common equity

Percy's CFO estimates that the company's WACC is 13.50%. What is Percy's cost of common equity? Round your answer to two decimal places.

  What is the net present value of this project

The system is expected to generate positive cash flows over the next four years in the amounts of RM350,000 in year one, RM325,000 in year two, RM150,000 in year three, and RM180,000 in year four. DCC's required rate of return is 8%.

  What is capitals after-tax wacc

If the returns required by investors are 9 percent, 13 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is Capital's after-tax WACC? Assume that the firm's marginal tax rate is 40 percent.

  What is the most you should pay for the annuity

You have a chance to buy an annuity that pays $950 at the end of each year for 6 years. You could earn 6% on your money in other investments with equal risk. What is the most you should pay for the annuity?

  The manufacturer to use modular design

Modular Design. Give an example of a family of products that is commonly known that uses modular design. Explain why it is advantageous for the manufacturer to use modular design.

  What will be the firm cost of common equity

If the firm's beta is 1.6, the risk-free rate is 9%, and the average return on the market is 13%, what will be the firm's cost of common equity using the CAPM approach?

  Estimate expected return on the stock

Assume the expected return on the market is 13.8% and the risk-free rate is 6.4%. Carib Corporation stock has a beta of 1.2.

  Find the current value of a share

General Cereal common stock dividends have been growing at an annual rate of 7% per year over the last ten years. Current dividend is 1.70 each share.

  Determine the accounts receivable turnover

A corporation's 2000 sales were $8,954,238. Sales were $5 million ten years earlier. To the nearest percentage point, at what rate have sales been growing?

  What is the effect of spot volatility and mean reversion

What is the effect of spot volatility and mean reversion in Hull White model? Describe considering 2 swaptions expiry 5 Years maturity 2 Years, expiry 4 Years maturity 2 Years.

  Profit sharing plan for employees

All profit-sharing plans must have a formula under which contributions are allocated to participants' accounts.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd