Why consequence in will be impossible in efficient market

Assignment Help Business Management
Reference no: EM132597803

Growth and value can be interpreted in different ways. Growth brings the notion that the portfolio focuses upon firms which have excellent future earnings per share (EPS). Small current yield, large price-to-book (P/B) ratio and large price-to-earnings (P/E) ratio are usual features of such portfolios. Value typically brings the idea of portfolios focusing or including only issues showing low P/B ratios, low P/E ratios, excellent dividend yield and undervalued stock prices.

Required:

(a) Identify and explain why, over a long period of time, value equity investment will outperform growth equity investment.

(b) Explain why the consequence in (a) will be impossible in an efficient market.

Reference no: EM132597803

Questions Cloud

Explain how a dividend payout increase : At Newton Space plc, the company's director mentioned that the utilisation of dividend discount models
Explain accounting information system and business processes : You may also wish to comment on any work experience you have in the selected area.Your observation on how important you believe this process is
Case study of kikos and south korean won : Given the Covid19 crisis that has impacted global economies on an unprecedented scale. The level of disruption is likely to persist
What will Domino record as Uncollectible Accounts Expense : During the year, the company wrote off $2,820 in uncollectible accounts. What will Domino record as Uncollectible Accounts Expense for Year 2
Why consequence in will be impossible in efficient market : Growth and value can be interpreted in different ways. Growth brings the notion that the portfolio focuses upon firms which have
Broader market implications in the square ipo : What were the broader market implications in the Square IPO?
Potential events that might have occurred to global : Consider the following potential events that might have occurred to Global on 30 December 2017. For each? one, indicate
Prepare sales and production budgets : Litwin Industries had sales in 2019 of $5.6 million (800.000 units). Prepare sales and production budgets and calculate the cost per unit under two plans.
Determine the average age of receivables : The Hypothetical Lid is cxamining thc.question of relaxing its credit policy. It sells at present 20.00 units at a price of Rs 100 per unit

Reviews

Write a Review

Business Management Questions & Answers

  Definition for comparability factors in reference

What is a general definition for comparability factors in reference to price analysis? Please list and discuss three (3) comparability factors used in price

  Explain manager to become more socially responsive

what role will the government, church, and family play?" exclaimed the vice president of Milam Corporation. What persuasive argument would you use to influence this manager to become more socially responsive

  Briefing a legal case involving cps

What are the steps to briefing a legal case involving cps and possibly a parental termination?

  What are vegetarian options for protein sources

On another note, why are beans and peas unique foods? What are vegetarian options for protein sources? What is an example of a meal that you would normally eat, where you are getting all of the nutrient requirements that the food pyramid recommen..

  Which line did the student make the first mistake

Line 1 Segment AC equals 2. Segment FE equals 2. Segment AC is congruent to segment FE

  What is the structure of your partnership

Use comparative analysis of potential companies in term of strategic fit with your client. What is the structure of your partnership: joint venture/acquisition?

  Transformational vs transactional leadership theories

After reading "Transformational vs. Transactional Leadership Theories: Evidence in Literature," select either transformational or transactional theory

  How do our five strategic pillars address these

In your own opinion, which oh Michael Porter's Five Competitive Forces that shape strategy (treat of entry, the power of suppliers, the power of buyers

  Fixed costs of production

The marginal cost of production is constant and is equal to $2. There are no fixed costs of production.

  Justification of discretionary spending accounts1 assume

justification of discretionary spending accounts1. assume that your state is expecting a 25 percent rate increase of

  Explain one of your employees is constantly late

Explain One of your employees is constantly late, leaving food and drinks at the work station, and you are forced to address the situation. You need to let all employees know about a company special event.

  What percent of occupancy should have made to be break-even

What percent of occupancy should have made to be break-even last night?

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