The market will go up as economy recovers

Assignment Help Financial Management
Reference no: EM131089395

We know that the market should respond positively to good news and that good-news events such as the coming of the end of a recession can be predicted with at least some accuracy. Why, then, can we not predict that the market will go up as the economy recovers?

Reference no: EM131089395

Questions Cloud

Call option on euro and euro spot rate : ABC Corportion has 90-day receivables of Euro 500,000. The following info is available: A call option on Euro that expires in 90 days has an exercise price of $1.20 and has a premium of $0.03. A put option on Euro that expires in 90 days has an ecerc..
Human resources in an organization : If an organization does not provide the right place for physical and human resources in an organization, which principle is violated? What are the consequences of it?
Impact an individual decision : Clarify how motivation and abilities impact an individual's decision to choose entrepreneurship as a career.
Belief in the efficient market hypothesis : Your co-worker tells you that he has beaten the market for each of the last three years. Suppose you believe him. Does this weaken your belief in the efficient market hypothesis? Why?
The market will go up as economy recovers : We know that the market should respond positively to good news and that good-news events such as the coming of the end of a recession can be predicted with at least some accuracy. Why, then, can we not predict that the market will go up as the econom..
Differences between virtue theory : Write a 450- to 700-word essay comparing the similarities and differences between virtue theory, utilitarianism, and deontological ethics.
Human resources development : The paper should not simply be a restatement of concepts described in the materials. Writing on 3-4 pages on CHOOSEN AREA on Human resources development, safety and health, compensation and benefits
Largest mechanical contractors in the country : Randy Harber, a 36-year-old construction crew chief, is employed by one of the largest mechanical contractors in the country. His employer operates in 44 states and 14 foreign countries.
Revenues generated by new product are forecast : Revenues generated by a new product are forecast as follows: Year Revenue 1 $40,000 2 30,000 3 20,000 4 10,000 5 -0- no sales after year 4 Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of..

Reviews

Write a Review

Financial Management Questions & Answers

  Comparing the current selling price to equilibrium price

Hatter Enterprise paid a dividend last year of $3.25, which is expected to grow at a constant rate of 7%. Hatter has a beta of 1.5 and their stock is currently selling for $62. If the market risk premium is 6% and the risk-free rate is 3%, should you..

  Auditors ethics be challenged while performing an audit

It is the responsibility of management to apply accounting standards when communicating with investors and creditors through financial statements. How might an auditor's ethics be challenged while performing an audit?

  Determine whether there is a forecast bias in forward rate

You must determine whether there is a forecast bias in the forward rate. You apply regression analysis to test the relationship between the actual spot rate and the forward rate forecast (F).

  Portfolio equally invested in risk-free asset and two stock

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.12 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?

  What ownership percentage of our firm must be sold

A potential investor is seeking to invest $750,000 in our venture at an expected 40% rate of return. The firm currently has 2,000,000 shares held by the founders. The venture is projected to generate $850,000 in income per year over the next 5 years...

  How large of a mortgage will the bank allow her take out

Another woman is looking to purchase her primary home in the Cleveland Suburbs. She has enough for a 20% down payment and an income of $40,000 per year. However, her FICO Score is 600. The prime Interest Rate for 30-year Mortgages is 4.75%. How much ..

  Slightly less risky than the overall firm

Old Town Industries has three divisions. Division X has been in existence the longest and has the most stable sales. Division Y has been in existence for five years and is slightly less risky than the overall firm. Division Z is the research and deve..

  Why do centralized organizations tend to be more ethical

Why do centralized organizations tend to be more ethical than decentralized ones? Can you think of a situation or example in which a decentralized organization might be more ethical than a centralized one?

  Should leave capital markets unregulated

Calculate how much money she could take out each year for the 20 years from her 41st birthday till her 60th birthday, assuming she still earns 5% and takes out the same amount each year, leaving exactly $0 in the account after removing her 20th paym..

  What is net gain or loss after accounting for premium paid

A call option on an S&P 500 futures contract has an exercise price of 1490; the call premium is currently $6.50. On the same date, a put option on the S&P 500 futures contract has an exercise price of 1490; the put premium is currently $7.50. The two..

  What are the annual deposits in years

Suppose that the parents of a young child decide to make annual deposits into a savings account with the first deposit on the 5th birthday and the last on the 15th birthday.

  What is the correlation coefficient between toyota and honda

Toyota Corp.'s stock price has a variance of returns of 0.0295. Honda Corp.'s stock has a variance of returns of 0.0515. The covariance between Toyota and Honda is 0.0275. What is the correlation coefficient between Toyota and Honda?

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