If you believe in efficient market hypothesis

Assignment Help Financial Management
Reference no: EM131973181

1. If you believe in the efficient market hypothesis, you should also believe that ____

--investors may be better off investing in an actively managed fund instead of a passively managed fund such as the S&P 500.

--technical analysis is helpful in picking stocks.

--All of the choices here are correct.

--it is very difficult for anyone to constantly pick stocks that will “beat the market”.

--investors can predict future stock prices by looking at stock prices in the past.

2. Which statement is NOT true?

A. If two firms have the exact same ROA (return on assets), the one with the higher debt ratio will have the higher ROE (return on equity).

B. If a firm has a lower DSO (days sales outstanding), it manages receivables more efficiently than one with a higher DSO.

C. High inventory turnover shows better inventory management than low inventory turnover.

D. The higher the current ratio, the less liquid the firm is assumed to be.

Reference no: EM131973181

Questions Cloud

Why did amazon set up shop inside the warehouses : Why did Amazon set up shop inside the warehouses of P&G and Kimberly Clark, and why did these manufacturers allow Amazon to do it?
Define what contemporary luxury means in a fashion : BUSM4184 Luxury Brand Management Assignment - Reflective Essay. Define what contemporary luxury means, in a fashion (etc.,) context
Hardware business with the kindle e-reader : What was the strategic motive for Amazon in getting into the hardware business with the Kindle e-reader?
Identify the first-listed diagnosis in the encounter : Identify the first-listed diagnosis in the following encounter. An established patient experiences chest pain. He has a history of previous myocardial.
If you believe in efficient market hypothesis : If you believe in the efficient market hypothesis, you should also believe that ____
Explain your interpretation of the complexity of poverty : Explain your interpretation of the complexity of social class, poverty, and discrimination in terms of the interconnections among race, ethnicity, age, gender.
What are some selective strategies of some companies : When it comes to companies entering the market 80 to 90% of them fail. What are some selective strategies of some companies
What is degree of operating leverage : What is the degree of operating leverage of Modern Artifacts when sales are $17,760? What is the degree of operating leverage when sales are $35,280?
Disadvantages of providing employees with negative feedback : What are some of the potential disadvantages of providing employees with negative feedback?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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