A stock market is more likely to be inefficient when
Multiple Choice
A) there are many analysts
B) there is little liquidity
C) in a developed economy
A stock market is most likely to be inefficient when -
b) there is less liquidity
This is because less liquidity indicates investors are not willings to invest in the financial markets because of poor financial markets , assymetric information, educational illiterate investors etc all leading to less liquidity.
Other factors make markets efficient as more analyst will result in more informed investors with well developed markets and more information symmetry.
In a developed market markets will be more efficient because of the well developed financial institutions, more regulations and informed investors.
I hope this helps.
Press press the like button
Thanks n regards
A stock market is more likely to be inefficient when Multiple Choice A) there are many...
Policies that make it more difficult to fire an employee likely lead to: Multiple Choice 0 less unemployment, because everyone will value their job more. 0 greater unemployment, because employees will quit more often. 0 less unemployment, because employers will not be able to fire as many people. 0 greater unemployment, because employers will be more hesitant to hire someone. Growth accounting is seen a useful way to estimate this inputs contribution to growth: Multiple Choice labor. land. technology physical...
Which of the following most likely occurs when an inflationary gap exists? Multiple Choice Producers will use overtime shifts and strain capacity. More layoffs. Rising inventories Excessive saving
Multiple Choice: Leaders that receive more foreign aid are ____________ to respond to a revolutionary threat by contracting the amount of public goods they provide compared to leaders that do not receive foreign aid. a. unlikely b. less likely c. equally likely d. more likely
Multiple Choice The elasticity of demand for a product is likely to be greater ________. A. if the product is a luxury rather than an absolute necessity B. when the proportion of one’s income spent on the product is smaller C. if the product is an imported good rather than a domestically produced good D. when the number of substitute products available is smaller
26)What pair of goods is likely to have the largest cross-price elasticity in absolute value? Multiple Choice a)Ramen noodles and a Rolex watch b)Cross-price elasticity is always negative, and simply reported in absolute value. c)Butter and margarine d)Peanut butter and jelly 27)If the price of butter increases 5 percent and the amount of margarine purchased increases 25 percent, then the cross-price elasticity of these goods is: Multiple Choice a)0.2. b)- 0.2. c)5. d)- 5. 28)The determinants of price elasticity of...
What is the most likely explanation for a +20.0% return on a stock with a beta of 1.0 in a month when the market returned +10.0%? Multiple Choice О The stock is aggressive. The market is undervalued. О Favorable firm-specific news was reported. The beta is really less than 1.0.
The cost of preferred stock: Multiple Choice O increases when a firm's tax rate decreases. O is constant over time. O is unaffected by changes in the market price of the stock. O is equal to the stock's dividend yield. increases as the price of the stock increases.
Tests of controls are most likely to be performed when: Multiple Choice ) The client's control environment appears weak. Controls seem weak and must be properly documented. 1 ) The auditor wishes to assess control risk at the maximum. The auditor plans to rely on the controls.
This is for my intro to business, I need help with the Multiple choice question. I need help with all the questions, I did answer some of the question but I'm not sure if they're correct or not Multiple Choice - circle letter corresponding to the correct answer. 1. A is a registered representative acting as an intermediary to buy and sell securities for clients. A. certified stock underwriter lockbroker C. securities banker D. trading accountant 2. When an investor...
1)Customers are more likely to use "decision heuristics" for which category of products? Multiple Choice Shopping Convenience Luxury Credence-based Specialty 2)Evonnia is scared of snakes and feels a strong wave of fear whenever she sees one. This fear is an example of: Multiple Choice her security needs. the behavioural component of her attitude. the cognitive component of her attitude. her lifestyle. the affective component of her attitude. 3)Allison is buying a can of orange soda. She scrutinizes all the information...