The following argues that investors are rationale even when they are acting irrational since they are...
The following argues that investors are rationale even when they are acting irrational since they are learning as they go:
a. Cognitive Dissonance
b. Technical analysis
c. Adaptive Market Hypothesis
d. Herding
Homework Answers
Adaptive Market Hypothesis argues that people are rational and are motivated by their own self-interests, make mistakes, and tend to adapt and learn from their mistakes.
The answer is c)
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The following argues that investors are rationale even when they
are acting irrational since they are...
Which of the following statements is false? A. If investors have a high disagreement concerning the...
Which of the following statements is false? A. If investors have a high disagreement concerning the value of a publicly traded firm, and it is also difficult to short sell the firm’s shares, then the firm’s stock might become overpriced. B. During bubbles, the behavior of many investors appears irrational. C. Most tests of technical analysis strongly suggest that past returns and other market generated data can be easily exploited to create portfolios that generate positive alphas. D. Portfolios of...
1) Suppose a manager earns a positive alpha for a year of investing. Efficient market hypothesis explains this as: A. the manager got lucky. B. the manager took high risk. C. both (A) and (B) are true...
1) Suppose a manager earns a positive alpha for a year of investing. Efficient market hypothesis explains this as: A. the manager got lucky. B. the manager took high risk. C. both (A) and (B) are true. D. none of the above 2) Suppose a manager earns a positive alpha for a year of investing. Efficient market hypothesis explains this as: A. the manager got lucky. B. the model of risk which produced the result was flawed or incomplete. C....
1.)Which of the expressions is equivalent to the following statement: The sum of two even numbers...
1.)Which of the expressions is equivalent to the following statement: The sum of two even numbers is even. a.) If x is even or y is even, then x + y b.) If x is even or y is even, then x + y is even c.) If x is even and y is even, then x + y is not even. d.) If x is even and y is even, then x + y is even 2.) Find a...
12. You believ e that it is good news for investors in a company when a...
12. You believ e that it is good news for investors in a company when a long time CEO is forced to resign. You collect information on announcements of forced resignations and the risk. adjusted returns in the days before, during and after the announcements. Across the companies, you notice that stock prices are up 2% in the ten days before the announcement, jump another 5% on the announcement and go up another 3% in the ten days after the...
Which of the following statements regarding the efficient market hypothesis is NOT accurate? Select one: a....
Which of the following statements regarding the efficient market hypothesis is NOT accurate? Select one: a. The strong form state prices reflect all information, including public and private b. Semi strong form Implies that fundamental analysis will not lead to abnormal returns c. If the market is weak form efficient, then investors can earn abnormal returns by trading on market information d. Strong form Implies that technical analysis will not lead to abnormal returns e. All of the answers are...
help with 138, 139, 140. 141 138. In break-even analysis: a) when total costs = total...
help with 138, 139, 140. 141
138. In break-even analysis: a) when total costs = total revenues, it is the breakeven point b) Very important to know for a new venture the entrepreneur c) Provides a good account of the notential of the new venture to investors d) All of the above are true 139.In an income statement: a) Operating profit measures financial leverage b) Gross profit - operating expenses = operating profit c) Both of the above are true...
Part Il Multiple chalet Ple a s h poed 1. Which of the following is a...
Part Il Multiple chalet Ple a s h poed 1. Which of the following is a chanc e of market A large number of value-maximizing investors No barriers to trading exist TO Renerally asus slowly at Value Transaction costs are minimal or non-existent Investors should expect to earn fair rates of return on their investments 2. The Efficient Markets Hypothesis Has been proved in all forms Has been proved in the weak form, but not others Has been proved in...
manual computation please 2. Some investors feel that since AT& is such a large utility company,...
manual computation please
2. Some investors feel that since AT& is such a large utility company, its earnings per share (EPS) should be related to the gross national product (GNP). From the data in the accompanying table perform the following: GNP AT&T EPS 2004 2005 2006 2007 2008 2009 2010 520.1 560.3 590.5 632.4 684.9 747.6 789.7 0.82 0.86 0.88 1.02 1.08 1.18 1.22 a. Estimate the least-square line;the standard error of each of the regression coefficients; the t- values;...
please I need just the answers. no need to show working 2. Which type of risk...
please I need just the answers. no need to show
working
2. Which type of risk is faced by holders of corporate bonds that can be considered non- existent by holders of government bonds? a) foreign exchange rate risk b) inflation rate risk c) market risk d) default risk can We were unable to transcribe this image9. Which of the following statements about corporate governance is wrong? a) Corporate governance is important because it is the framework through which shareholders...
Which of the following investors will get paid first when the issuing company is going bankrupt?...
Which of the following investors will get paid first when the issuing company is going bankrupt? a. Mortgage bond holders b. Subordinated debenture holders c. Common stock holders d. Debenture bond holders e. Preferred stock holders
12. You believ e that it is good news for investors in a company when a long time CEO is forced to resign. You collect information on announcements of forced resignations and the risk. adjusted returns in the days before, during and after the announcements. Across the companies, you notice that stock prices are up 2% in the ten days before the announcement, jump another 5% on the announcement and go up another 3% in the ten days after the...
help with 138, 139, 140. 141
138. In break-even analysis: a) when total costs = total revenues, it is the breakeven point b) Very important to know for a new venture the entrepreneur c) Provides a good account of the notential of the new venture to investors d) All of the above are true 139.In an income statement: a) Operating profit measures financial leverage b) Gross profit - operating expenses = operating profit c) Both of the above are true...
Part Il Multiple chalet Ple a s h poed 1. Which of the following is a chanc e of market A large number of value-maximizing investors No barriers to trading exist TO Renerally asus slowly at Value Transaction costs are minimal or non-existent Investors should expect to earn fair rates of return on their investments 2. The Efficient Markets Hypothesis Has been proved in all forms Has been proved in the weak form, but not others Has been proved in...
manual computation please
2. Some investors feel that since AT& is such a large utility company, its earnings per share (EPS) should be related to the gross national product (GNP). From the data in the accompanying table perform the following: GNP AT&T EPS 2004 2005 2006 2007 2008 2009 2010 520.1 560.3 590.5 632.4 684.9 747.6 789.7 0.82 0.86 0.88 1.02 1.08 1.18 1.22 a. Estimate the least-square line;the standard error of each of the regression coefficients; the t- values;...
please I need just the answers. no need to show
working
2. Which type of risk is faced by holders of corporate bonds that can be considered non- existent by holders of government bonds? a) foreign exchange rate risk b) inflation rate risk c) market risk d) default risk can We were unable to transcribe this image9. Which of the following statements about corporate governance is wrong? a) Corporate governance is important because it is the framework through which shareholders...
Which of the following investors will get paid first when the issuing company is going bankrupt? a. Mortgage bond holders b. Subordinated debenture holders c. Common stock holders d. Debenture bond holders e. Preferred stock holders
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