9. Answer the following questions for #9 with 50 - 100 words. What is the key...

9. Answer the following questions for #9 with 50 - 100 words.

What is the key tax characteristic for investors associated with state and local (municipal) securities?

How would you define efficient security markets?

Solutions

Expert Solution

the key tax charecteristics of investors associated with state or local securities is that they are tax exempt that is the interest that is paid on such bond is not subject to local income taxes or state income taxes.

due to the tax free nature of such bonds, the yields offered on such bonds is lower in compariosn to the risk free treasury bond issued by the government.

efficient markets are markets where all the available information is available to all the people at the same time, and the prices respond to theses information instantly. the stock markets are perfect information of efficient markets. under the ideal conditions , the iformation is free and is available to everyone at the same time and on the basis of that, the investors can make rational decisions.

this theroy claims that no one can beat the market on the basis of fundamental analysis or technical analysis or any investments based on speculations will not yield any gains.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

11. Answer the following questions for #11 with 50 - 100 words. The efficient market hypothesis...

11. Answer the following questions for #11 with 50 - 100 words. The efficient market hypothesis is interpreted in a weak form, a semistrong form, and a strong form. How can we differentiate its various forms? What was the primary purpose of the Securities Act of 1933?

In at least 100 words answer the following questions on how Facebook is changing the internet:...

In at least 100 words answer the following questions on how Facebook is changing the internet: How do you think that Facebook should balance its responsibilities to its shareholders - to maximize profits - with its responsibilities to its other stakeholders (e.g., its users, and the citizens of the countries in which it operates)? For instance, Facebook makes more money when controversial content is posted, but what if that content is "fake news"? Does Facebook have any responsibility for ensuring that...

(Answer to all the following questions collectively shall be 100 to 150 words) Requirements: a. Why...

(Answer to all the following questions collectively shall be 100 to 150 words) Requirements: a. Why are equity shareholders called residual claimants? Explain with reasons ) b. Why is debt capital considered the cheapest source of funds? Explain with reasons.

After summarizing utilitarian theory (in a minimum of 100 words), answer the following questions in three...

After summarizing utilitarian theory (in a minimum of 100 words), answer the following questions in three to five sentences each: What are the strengths and weaknesses of utilitarianism in relation to business ethics? How would Friedman respond? How would Freeman? How would a utilitarian respond to this week's case study (Nestle and Advertising)?

Position Statements Choose five (5) of the following questions to answer in about 100 words each....

Position Statements Choose five (5) of the following questions to answer in about 100 words each. Simply state and briefly explain your position on the issue prior to our formal study of it. No comprehensive, developed argument is needed at this time, simply a coherent expression of your view. 1. Is abortion a moral or immoral choice? Do you consider yourself pro-life or pro-choice? 2. Should we clone human beings? Morally speaking, what makes this a good or bad idea?...

WEEK 9 ASSIGNMENT Answer the following questions: With IT projects – what are some of the...

WEEK 9 ASSIGNMENT Answer the following questions: With IT projects – what are some of the common risks associated with managing an IT project? What are the potential consequences of not assessing the technical risks associated with an information systems development project? In what ways could you identify an information systems project that was technically riskier than another?

Answer the following questions below in your own words (NO PLAGIARISM) A- Answer the following questions...

Answer the following questions below in your own words (NO PLAGIARISM) A- Answer the following questions (300 words): Reflect on your experiences realizing your gender: How did you learn about your gender? What happened? What gender “rules” were you aware of in this experience? B- Answer the following questions (300 words) Reflect on your experiences learning about sexuality: Where did you learn about sexuality? What did you learn? How was it gendered? What do you think it should include for...

For the following demand function, QD = 100 – P, answer the following questions a. what...

For the following demand function, QD = 100 – P, answer the following questions a. what is the point elasticity of demand at P = 80? b. what is the point elasticity of demand at P = 20? c. at what price is demand unitary price elastic? d. demand is price elastic for prices between __________ and ___________ e. Consider your answer to part d., what happens to revenues as prices decrease within this range? Are marginal revenues positive, constant...

In your own opinion, answer the following questions: a) What are the key challenges of collecting...

In your own opinion, answer the following questions: a) What are the key challenges of collecting data from the dark web b) Can OSINT be of any benefit to organizations, factoring in that it is available to the public? ( 3 marks)

Assume a normal distribution of the form N(100, 100), answer the following questions: What proportion of...

Assume a normal distribution of the form N(100, 100), answer the following questions: What proportion of the distribution falls within 1 standard deviation of the mean (e.g., within -1 and 1 standard deviation)? What is the probability of a single draw from that distribution has a value greater than 115? What is the range that captures the middle 95% of the population distribution? If I randomly sample 10 observations from this distribution and calculate a mean, what is the probability...

Subjects