Which of the following are not assumptions of technical analysis? History tends to repeat itself Fundamental analysis is inherently flawed and thus not useful Even random market price movements move in identifiable patterns and trends that repeat over time

Which of the following are not assumptions of technical analysis? History tends to repeat itself Fundamental analysis is inherently flawed and thus not useful Even random market price movements move in identifiable patterns and trends that repeat over time

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk

Section: Chapter Questions

Problem 3Q: Why is it true, in general, that a failure to adjust expected cash flows for expected inflation...

See similar textbooks

Related questions

Q: Green Corporation has the following capital structure since the incorporation on January 1. 2016:

A: Preference shares are generally known as preferred stock and these type of shares gets preference as…

Q: When a change in the tax rate is enacted, the effect on existing future income tax assets or…

A: The correct answer is: (D) recorded as an adjustment to income tax expense in the period of the rate…

Q: Minion, Inc., has no debt outstanding and a total market value of $220,000. Earnings before interest…

A: EPS = Earning available for equity shareholders / Number of equity shareholders

Q: If the petty cash fund is not replenished at the end of the accounting period, A) the income…

A: Petty cash fund is a tiny sum of money that each department may have for the purpose of paying the…

Q: Profitability

A: Profitability is the prime purpose of every business. Every corporation tries to maximize its…

Q: 2. Which technique would be most effective and efficient for testing the operating effectiveness of…

A: The bank reconciliation statement is the statement that is prepared to rectify the errors between…

Q: 9. Decide if the following statements are true or false and select the correct answer. If a…

A: Contingent liability are those liability which may or may not occur in future. Such liabilities…

Q: whether the statement is true or false.

A: Asset-based financing is the finance availed by a company in lieu of its assets. In such cases, the…

Q: Capital structure refers to a measure of how long it takes to convert inventory into cash. O True…

A: Cpaital Structure :— Capital Structure is refers to the specific Mix of Debt and Equity used to…

Q: Which of the following statements is true with respect to intangible assets with indefinite lives? O…

A: As per IAS 36 Intangible assets, For Intangible assets with indefinite useful, Intangible assets not…

Q: Which of the following is a mortgage loan that has a fixed rate, a fixed term, and fixed payments? O…

A: The question is based on the concept of mortgages and different methods of mortgages. A mortgage is…

Q: Read the requirements. Requirement 1. Answer the following questions. At what type of bond price…

Q: Statement Matching Need Help completing

A: Balance sheet shows the financial position of a company at a given date. Income statement reports…

Q: i need details explanatio

A: Under FIFO method, unit purchase first, sold first. Cost of goods sold means we need calculate cost…

Q: Straight Line Method Accelerated Method Line item $Million Line item $Million Revenues 200 Revenues…

A: Income statement shows the company income, expenses, interest charges, tax expenses for a particular…

Q: Please answer the attached.

A: The correct answer is : This means that for every $1,000 borrowed, the monthly payment will be…

Q: Max purchases a new auto in 2022 at a cost of $56,000. He uses the car 80 percent for business.…

A: Depreciation is the process through which the expense of utilizing a tangible item is linked to the…

Q: The King of France offers you an investment opportunity that would pay you $30 per year forever. If…

A: The fair price of the investment opportunity can be calculated as present value of perpetuity.

Q: 6. Medtronic management have set a MARR of 15% for any of their project; will you advise Medtronic…

A: Capital Budgeting techniques: Capital budgeting techniques refer to a collection of tools managers…

Q: Alegria Inc. sells Alegria Sizzling Fried Chicken in 2022 February. Alegria Inc. had the following…

A: Journal is the primary book of entry. Ledger is the secondary book, where transactions are posted,…

Q: straight-line method to fill in the row for year 3 of the depreciation table for an SUV that costs…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: CFL Corporation is a civil engineering company that makes traffic lights. The company must decide…

A: Expected Monetary Value (EMV) is a statistical tool used to estimate the average outcome of a future…

Q: How much is the salaries expense to be recognized in 2018? P80,000 P100.000 c. P180,000 d. P300.000

A: The fair value at grant date i.e P30 will be taken for expense calculation. The share options will…

Q: For Questions 36-38 refer to problem below: On August 1, 2020, Tempest Company bought a property…

A: Prepaid insurance are current assets disclosed in the Balance Sheet.

Q: The total job cost for Job3122 is closest to:

A: direct labor cost * direct labor-hours = cutting: 5000*20 =100000 = polishing: 10000*70 =700000 =…

Q: The process of adjusting the bond interest expense account for any premium is called amortization of…

A: The process of adjusting the bond interest expense account for any premium is called amortization of…

Q: Federal prosecutors see greed as the motivating factor for corporate crime. O True False

A: Non violent corporate crime such as insider trading, embezzlement are common examples that are…

Q: Aldor Corporation opened a new store on January 1, 2014. During 2014, the first year of operations,…

A: Weighted average- Under the weighted average method, the cost is considered to be average at the…

Q: Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The following…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: (RAROC) Financial institution B wants to evaluate the credit risk of a potential loan to a BBB-rated…

A: (a) To calculate the expected loss (EL) according to the duration model, we need to calculate the…

Q: Organic Food Co.s cash account shows a $5,900 debit balance and Its bank statement shows $5.440 on…

A: Bank reconciliation is performed to find the errors while comparing the cash balance and passbook…

Q: Intel Inc is looking to acquire a new equipment for a project that will last for eight years. The…

A: Comparing alternatives: When a company needs equipment, it can either purchase it outright or lease…

Q: 7. A firm with a 14% cost of capital is evaluating two projects for this year's capital budget.…

A: The capital budgeting decision refers to the selection of the best capital asset or project that…

Q: HCS380 Week 1 Statement Matching Amortization Accounts Payable Cash Receipts Land Net Cash…

A: Financial Statements are the reports of all the economic activities and transactions of an…

Q: PROBLEM 1: Three mutually exclusive project design alternatives are being considered. The estimated…

A: NPV is the difference between Present Value of cash Inflows and Initial Investment. A project with…

Q: Suppose that, on October 24, 2022, a company sells one April 2023 live cattle futures contract. It…

A: A futures contract is a derivative instrument to purchase or sell an underlying asset on a future…

Q: A certain masonry dam requires 200,000 cu m of gravel for its construction. The contractor found two…

A: Total Cost - The total cost, which includes both the original cash spend and the opportunity cost of…

Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

please explain and provide co

Which of the following are not
assumptions of technical analysis?
History tends to repeat itself
Fundamental analysis is
inherently flawed and thus
not useful
Even random market price
movements move in
identifiable patterns and
trends that repeat over time
All information is already
included in prices

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

The weak form of the efficient market hypothesis states that _______? Group of answer choices successive price changes are dependent. successive price changes are independent. successive price changes depend on trading volume. successive price changes are biased. properly specified trading rules are of value.
Which of the following statements are true if the efficient market hypothesis holds?a. It implies that future events can be forecast with perfect accuracy.b. It implies that prices reflect all available information.c. It implies that security prices change for no discernible reason.d. It implies that prices do not fluctuate.
If the weakest form of market efficiency holds, then security prices reflect all information found in past prices and volume. Thus, traditional "technical analysis" will not work. Group of answer choices True False
The underlying assumptions of technical analysis are that A.price move in predictable patterns B. Market value is determined by market news C. Investors are rational
Which of the following assumptions of the Black-Scholes model are often violated in empirical data? O All of the other answers are correct. O Continuously-compounded returns on the underlying asset follow a normal distribution. O The volatility of the underlying asset is constant. O There are no jumps in the price of the underlying asset. O Trading in the underlying asset is continuous.
The semistrong-form of market efficiency states that O current market prices do not reflect any current information. O current market prices reflect all pertinent information, whether it is publicly available or privately held. O all information contained in past price movements is fully reflected in current market prices. O current market prices reflect all publicly available information, whether it is historical or newly released.
Which of the following statements is false? A. Historical VaR simulation involves using past data as a guide to what will happen in the future. B. Illiquidity is observed when there is a large difference between the offered sale price and the bid price. C. Yield spared is reflected in the size of the bid-ask spreads. D. The stressed VaR is based on how market variables have moved during a particularly adverse time period.
Which of the following statements is NOT an explanation of Efficient Market Hypothesis violations? Failure to take account of transactions costs. Failure to deal properly with risk. Weak theoretical foundation. Inaccurate trading data.
Why are the following “issues” considered efficient market anomalies? Are there rational explanations for any of these effects within the efficient market framework? Please explain your thinking and support with appropriate academic evidence. Magnitude Issue Lucky Event Issue
True or False: Technical Analysis (the practice of analyzing past stock price and volume data in order to predict future stock price behavior) would be useless under any form of the Efficient Market Hypothesis (EMH). Group of answer choices True False
(a) The Efficient Market Hypothesis (EMH) is a theory that explores the relationship between the availability of information and asset prices. It argues that all available information is already reflected in the price of share and therefore, it is impossible to beat the market over the long-term. Briefly explain the sub-hypotheses in EMH.
Which of the following method is not used by technical analysis? Select one: Economics forecasting trend Trading support and resistance level Charting O None of the answers are correct