9. Efficient markets hypothesis Which of the following are consistent with the efficient markets hypothesis? Check all that apply. It is worth hiring a financial adviser to find cheap stocks to purchase. An average person in the market will believe that all stocks are fairly valued. The stock market is informationally efficient.

9. Efficient markets hypothesis Which of the following are consistent with the efficient markets hypothesis? Check all that apply. It is worth hiring a financial adviser to find cheap stocks to purchase. An average person in the market will believe that all stocks are fairly valued. The stock market is informationally efficient.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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9. Efficient markets hypothesis Which of the following statements are consistent with the efficient markets hypothesis? Check all that apply. You should spend several hours a day studying the business section of your local newspaper to determine which stocks to add to your investment portfolio. The stock market is informationally efficient. An average person in the market will believe that all stocks are fairly valued.
7. Dividends a. are the rates of return on mutual funds. b. are cash payments that companies make to shareholders. c. are the difference between the price and present value per share of a stock. d. are the rates of return on a company's.capital stock.
2. A group of investors is planning to build an athletic equipment and apparel store in Saskatoon, close to a group of existing big box stores. The group spends $800,000 to buy the required land and to develop the parking lot. After completing these steps they terminate the project when they learn that another athletic store is going to be built close by. What option have the investors exercised? Three years later, the investors still own the land and improvements. How should they value these things if they decide at that time to complete the store as originally planned?
1. A security promises a future cash flow of exactly $4,200 in 5 years and $1,001 in 6 years. If the interest rate is 5%, then what is the present value of this security? 2.There are decreasing opportunities for businesses to make profitable investments. In the market for bonds we expect that the equilibrium price will and the equilibrium interest rate will