Other dot-com firms experienced skyrocketing market prices

Assignment Help Business Economics
Reference no: EM131092328

During the 1990s, securities related to technology and other dot-com firms experienced skyrocketing market prices. But, the market crashed around the year 2000. We can argue that this example: A: does not support the efficient markets hypothesis because people paid too much attention to historical events. B: supports the efficient markets hypothesis in that the high demand for, and perceived good chances of, high returns from these “dot-com” securities were incorporated into their prices. C: both supports and refutes the efficient markets hypothesis because when sentiments changed, the prices quickly fell. But, bubbles such as this one could be the result of herding. D: neither supports nor refutes the efficient markets hypothesis because when sentiments changed, the prices quickly fell. But, bubbles such as this one could be the result of herding. **NOT A OR B; ALREADY TRIED & WRONG**

Reference no: EM131092328

Questions Cloud

Corporate governance driven by sarbanes-oxley legislation : Recent changes in corporate governance driven by Sarbanes-Oxley legislation and new regulations promulgated by t the SEC. What is the intended impact on corporate behavior and ethics and what are the prospects for success?
Despite the managers strong external sales record : Priority Mail has been one of the most profitable products for the U.S. Postal Service, growing six times faster than first-class deliveries over the period from 1995 to 1999 and accounting for almost 8 percent of the Postal Service’s mail revenue. Y..
Economy have an impact on national savings : Does the level of taxation in a closed economy have an impact on national savings?
Two firms sell differentiated products-face demand curves : Assume that two firms sell differentiated products and face the following demand curves: q1 = 15 − p1 + 0.5 p2 and q2= 15 − p2 + 0.5p1 (assume marginal cost is zero) Derive the best response function for each firm. Do these indicate that prices are s..
Other dot-com firms experienced skyrocketing market prices : During the 1990s, securities related to technology and other dot-com firms experienced skyrocketing market prices. But, the market crashed around the year 2000. We can argue that this example: A: does not support the efficient markets hypothesis beca..
Pension plan is an annuity with guaranteed return : Meg's pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). She would like to retire with a pension of $40,000 per quarter for 25 years. If she works 37 years before retiring, how much money must she and her emplo..
What is market price and what are the firms profits : Suppose that market demand for golf balls is described by Q=90−3P, where Q is measured in kilos of balls. There are two firms that supply the market. Firm 1 can produce a kilo of balls at a constant unit cost of $15 whereas firm 2 has a constant unit..
Draw labor supply and demand curves for cashiers : Draw labor supply and demand curves for cashiers in Hadley supermarkets.
What was the national savings : Suppose government spending was $3.70 trillion, tax revenue was $4.50 trillion, GDP was $14.04 trillion, and total consumer spending was $10.70 trillion. (Instructions: Round your answers to two decimal places and include a negative sign if necessary..

Reviews

Write a Review

Business Economics Questions & Answers

  What is your ending inventory

Your sales are $63,000.00 and your stock is reduced by $27,000.00 worth of markdowns. Your receipts are $75,000.00. What is your ending inventory?

  How the free market fails at allocating efficient quantity

A coal fire plant that produces electricity emits sulfer dioxide, which causes Acid Rain, into the atmosphere. The market equilibrium price of electricity is $6 per kilowatt hour (kWh) and the market equilibrium quantity is 10 kWh. What type of exter..

  Q1 consider how the components of gross domestic product

q1. consider how the components of gross domestic product gdp fit with the circular flow model. what does gdp measure?

  Eventually input prices will fall and output will rise

If ___________________ exceeds ___________________, then the economy is in an inflationary gap. Eventually input prices will fall and output will rise in the economy if:

  What are some ways to implement your recommendation

What is the decision facing Amazon? What factors are important in understanding this decision situation?  What are the alternatives? What decision(s) do you recommend? What are some ways to implement your recommendation?

  Q1 old economy traders opened an account to short sell 1300

q1. old economy traders opened an account to short sell 1300 shares of internet dreams at 46 per share. the initial

  Risk-neutral investor

Suppose that a risk-neutral investor has a choice between buying a one-year bond paying 4 percent today, a two-year bond paying 5 percent today, a three-year bond paying 5.3 percent today, or a four-year bond paying 5.5 percent today, if a one-year b..

  Strategies for increasing revenue-decreasing expenditures

Synthesize the major strategies for increasing revenue and decreasing expenditures. Evaluate the skills in conducting environmental scanning for threats and opportunities facing higher education relative to financial issues.

  What is the equation of the aggregate demand curve

Consider an economy with the production function Y = L ^(1/3). calculate the equilibrium levels of real wage, labor and output. What is the equation of the aggregate demand curve for this example? What is the price level? What is the nominal wage lev..

  What is directly included in the calculation of the gdp

Which of the subsequent is directly included in the calculation of the GDP?

  What would be the present value for a series

What would be the present value for a series of 10 monthly payments, starting at $500 in the first month increasing by $50 every month with an interest rate of 5% compounded monthly?

  Human slavery-bad governance and environmental degradation

Some of the most serious abuses taking place in developing countries deal with child labor, human slavery, sweatshops, bad governance, and environmental degradation. Select one (1) developing country, and examine the extent to which two (2) of these ..

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