Which of the following assumptions does not imply an informationally efficient market? a. Security prices adjust rapidly

Question:

Which of the following assumptions does not imply an informationally efficient market?

a. Security prices adjust rapidly to reflect new information.

b. The timing of one news announcement is independent of other news announcements.

c. The risk-free rate exists, and investors can borrow and lend unlimited amounts at the risk-free rate.

d. Many profit-maximizing participants, each acting independently of the others, analyze and value securities.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

See More Books

Question Posted: Dec 30, 2023 02:01 AM

See More Questions

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
MCQ questions choose the correct answer 1. As inflation increases and becomes more volatile, resulting in greater uncertainty, which of the following is most likely to occur? The price system becomes...
MCQ questions: 1. An increase in oil prices, such as the oil shocks in the 70s, lead to _______ thereby causing ________ a movement along the AS curve; cost-push inflation a leftward shift in the AS...
To Premium From Actuarial Rating Advertising Sales Actuarial Premium 1e% 25% 15 60 The direct operating costs of the departments (including both variable and fixed costs) are Actuarial Premium rating...
A cylindrical specimen of aluminum having a diameter of 19 mm (0.75 in.) and length of 200 mm (8.0 in.) is deformed elastically in tension with a force of 48,800 N (11,000lbf). Using the data...
Route Canal Shipping Company has the following schedule for aging of accounts receivable: AGE OF RECEIVABLES APRIL 30, 2001 a. Fill in column (4) for each month. b. If the firm had $1,440,000 in...
Jim makes a deposit of $\$ 12,000$ in a bank account. The deposit is to earn interest annually at the rate of $9 \%$ percent for seven years. (a) How much will Jim have on deposit at the end of seven...
Inez has a specific set of plans to build a sailboat. The plans are detailed, and any boatbuilder can construct the boat. Inez secures bids, and the low bid is made by the Whale of a Boat Corp. Inez...
Zama CC acquired Machine A ( a second - hand machine ) for R 2 0 0 0 0 0 0 and brought it into use in its manufacturing process on 1 0 January 2 0 1 7 . Zama CC acquired a new manufacturing machine B...
Identify any transactions recently made by insiders in PayPal (PYPL).
You are helping your very rich aunt Molly decide where to invest her portfolio. She is planning to take a 10-year world tour after she invests the bulk of her portfolio. She thinks that picking a...
Coris Corp. has an equity value of $13,315. Long-term debt is $8,200. Net working capital, other than cash, is $2,750. Fixed assets are $17,380. How much cash does the company have? If current...
Competition a. forces companies to limit their growth. b. forces companies to improve products and lower prices. c. occurs when one business has control over the price of a product. d. is the product...
Managing your life is not like managing a business because you do not have financial or privacy issues to address. a) True b) False
What is the interaction type in each of the following cases: (a) two colliding marbles, (b) two cars in a collision in which they move together, (c) a bullet fired into and passing through a wooden...
Goods are the intangible products bought and sold by companies. a) True b) False
Design a program that asks the user to enter a charge account number. The program should determine whether the number is valid by comparing it to the following list of valid charge account numbers:...
Refer to the preceding exercise. Income ............. $ 4,000,000 Sates revenue ........... 50,000,000 Average invested capital ...... 20,000,000 Required: Demonstrate two ways Dakota Divisions...
Eleni Cabinet Company sold 2,200 cabinets during 2011 at $160 per cabinet. Its beginning inventory on January 1 was 130 cabinets at $56. Purchases made during the year were as follows: February . 225...
How did implementing JDA Software solutions change the way LG ran its business?
How did LGs new logistics and transportation management system improve management decision making? Describe two decisions that the new system solution improved.
What was the problem at Celcom described in this case? What management, organization, and technology factors contributed to this problem?
5.62 A noise process has a power spectral density given by S, (f) = 10-8 (1-1), If <108 100 0, If > 108 VOLIN This noise is passed through an ideal bandpass filter with a bandwidth of 2 MHz, centered...
Journal entry worksheet Journal entry worksheet MSquared pays its employees monthly. Payments made by the company on October 31 follow. Cumulative amounts for the year paid to the persons prior to...
Explore the concept of liminality as it pertains to the transitional spaces and psychological states depicted in the poetry of T.S. Eliot.

Which of the following assumptions does not imply an informationally efficient market? a. Security prices adjust rapidly

Question:

Step by Step Answer:

The assumption that does not imply an informationally efficient market is c The riskfree rate exists ...View the full answer

Fundamentals Of Investments Valuation And Management

Students also viewed these Business questions