What would happen to market efficiency if all investors attempted to follow a passive strategy?
Question:
What would happen to market efficiency if all investors attempted to follow a passive strategy?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (5 reviews)
If everyone follows a passive strategy sooner or later ...View the full answer
Answered By
Muhammad Umair
I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
3.50+
1+ Reviews
10+ Question Solved
Related Book For
Essentials Of Investments
ISBN: 9780073368719
7th Edition
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
Question Posted:
Students also viewed these Business questions
-
Stock XYZ, which traded for several months at a price of K72, and then declines to K65. if the stock eventually begins to increase in price, K72 is considered a resistance level because investors who...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Ann Carter, Chief Financial Officer of Consolidated Electric Company (Con El), must make a recommendation to Con Els board of directors regarding the firms dividend policy. Con El owns two...
-
In evaluating employee performance and determining salary raises, a company uses a large number of subjective and objective criteria gathered from numerous evaluators that are then combined together...
-
A newspaper reporter finds data in a study that surveyed children that reports a high percentage of children can match cartoon characters with the products they represent. For instance, they can...
-
The Bradford Company sold the entire bond issue described in the previous exercise to Saxton-Bose Corporation. Required: 1. Prepare the journal entry to record the purchase of the bonds by...
-
Saturated steam at \(356 \mathrm{~K}\) condenses on a vertical tube of diameter \(5 \mathrm{~cm}\) whose surface is maintained at \(340 \mathrm{~K}\). Find the height at which the flow becomes wavy....
-
1. Can you imagine any risks or dangers that Western companies might face in pursuing base of the pyramid strategies? 2. Is there anything that Western companies might learn from base of the pyramid...
-
A string of length 0.650 m and a linear density of 2.02 x 10-3 kg/m is vibrating in the fundamental harmonic mode even as the tension is increased over time. How many oscillations does the string go...
-
Legg Masons Value Trust, managed by Bill Miller, outperformed the S&P 500 in each of the 15 years ending in 2005. Is Millers performance sufficient to dissuade you from a belief in efficient markets?...
-
If everyone in the market believes in resistance levels, why do these beliefs not become self-fulfilling prophecies?
-
Joakim Keynes is the manager of the Repairs and Maintenance Department of JB Industries. He is responsible for preparing his departments annual budget. Most managers in the company inflate their...
-
National Foods has made its first ever issuance of 80,000 shares with a par value of $3 at $15 each. Its book value of net equity is $3,860,000. What is the retained earnings?
-
Roast House Coffee Importers sold 10 comma 000 units in October at a sales price of $ 5 per unit. The variable cost is $ 3 per unit. The monthly fixed costs are $ 15 comma 800. What is the operating...
-
Jenny's Novelties sells souvenir key chains at the local airport. JN sells these key chains at $12 each. The Variable Cost per chain is $8 and the Total Fixed Costs for teh year amounts to $13,000....
-
Kevin is 25 years old and just finished taking a Personal Finance class. He wants to start a investment plan with a goal of reaching $1,000,000 by the time he is 55 years old. He decides to invest in...
-
You deposit $400 each month into an account earning 8% interest compounded monthly. a) How much will you have in the account in 35 years? $ b) How much total money will you put into the account? $ c)...
-
The census referred to in the previous exercise also reported that college-educated Canadians earn on average $41,825. Suppose that incomes are normally distributed with a standard deviation of...
-
Suppose that the electrical potential at the point (x, y, z) is E(x, y, z) = x + y - 2z. What is the direction of the acceleration at the point (1,3,2)?
-
You've just decided upon your capital allocation for the next year, when you realize that you've underestimated both the expected return and the standard deviation of your risky portfolio by 4%. Will...
-
Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, rf. The characteristics of two of the stocks are as follows: Could the equilibrium rf be...
-
Suppose that the returns on the stock fund presented in Spreadsheet 6.1 were -40%, -14%, 17%, and 33% in the four scenarios. a. Would you expect the mean return and variance of the stock fund to be...
-
List 3 major differences between bonds and common equity. What makes equity more attractive to some investors and bonds attractive to others?
-
What type of cash flow should you use in valuation for this company? What type of valuation model should you use? Consider DCF and Relative Value. Are the valuations consistent? What is your estimate...
-
using the sample, we estimated the coefficient on the size variable as 0.3199, versus 0.2648 in the above regression. Discuss whether there is an inconsistency in these results.
Study smarter with the SolutionInn App