Question
In: Accounting
When market prices fully reflect all information available to the public, it is referred to as...
When market prices fully reflect all information available to the public, it is referred to as
A. efficient capital market.
B. transparency.
C. efficient pricing.
D. effective capital marke
Solutions
Expert Solution
Solution: The answer is (A) Efficient Capital Market
Reason:
Efficient Capital Market also be called as Efficient Capital Hypothesis formulated by Eugene Fama in 1970. Efficient Capital Hypothesis suggests that at a any given time, prices fully reflect all available information about a particular stock or market.
According to Efficient Capital Hypothesis, no investor has advantage in predicting the market because all the information is already available in the market to everyone.
Option B is not correct because transparency means operating openly and available to everyone but this is not relating to market prices only.
Option C is not correct because efficient pricing is the concept that the price at which an asset sells should already reflect all public demand and supply information.
Option D is not correct because effective capital market talks more about success in desired productivity.
ekkarill92 answered 1 year agoRelated Solutions
The prices of stocks at any point should reflect, fully, all available information. We live in...
The prices of stocks at any point should reflect, fully, all
available information. We live in the internet era where
information is readily available. Investors react to information
and the price of stocks react accordingly. Write a paper about the
forms of stock market efficiency and the tests of the efficient
market hypothesis. Include in your discussion a comparison and
contrast between the Christian worldview and the secular worldview
about the stewardship of money. 500 words minimum
Market efficiency discusses the degree that market prices reflect available information that is relevant to valuing...
Market efficiency discusses the degree that market prices
reflect available information that is relevant to valuing an asset.
For instance if I am valuing a stock (a percentage ownership in a
firm) I need to know the size of expected future payments to me,
the timing of those payments, and the risk (interest) associated
with those payments. If the market price reflects all known
information then the market is said to be efficient. If certain
insiders of the company know...
the price of stocks at any point should reflect, fully, all available information. We live in...
the price of stocks at any point should reflect, fully, all
available information. We live in the internet era where
information is readily available. Investors react to information
and the price of stocks react accordingly. Discuss the of the forms
of stock market efficiency and the tests of the efficient market
hypothesis. Include in your discussion a comparison and contrast
between the Christian worldview and the secular worldview about the
stewardship of money. please do not plagiarize
The Efficient Market Hypothesis (EMH) states that security prices reflected all available information. Explain briefly the...
The Efficient Market Hypothesis (EMH) states that security
prices reflected all available information. Explain briefly the
definition and benefits of Efficient Market Hypothesis
Cash flow statement is an important information for company in
making decision. State and explain some usefulness of cash flows
minimum 6 items.
Credit analysis is more than just establishing the credit
worthiness of a company, but the ability to pay its debts at the
schedule times. That’s why the commercial lenders (creditors) may
need to be...
The Efficient Market Hypothesis (EHM) states that security prices reflected all available information. Explain briefly the...
The Efficient Market Hypothesis (EHM) states that security
prices reflected all available information. Explain briefly the
definition and benefits of Efficient Market Hypothesis.
As a sale market manager for a company, contemplate whether prices should reflect the value the...
As a sale market manager for a company, contemplate whether
prices should reflect the value the customers are willing to pay or
whether they should be based upon the cost of the product or
service to your company. How would you support this with an example
of your product or service to substantiate your position?
i) What is fully distributed cost pricing? Derive fully distributed cost prices algebraically in linear market...
i) What is fully distributed cost pricing? Derive fully
distributed cost prices algebraically in linear market demand and
costs system?
ii) Is there any better pricing scheme than fully distributed
cost pricing? Explain.
To the extent that all market participants have better information, economic efficiency is improved and prices...
To the extent that all market participants have better
information, economic efficiency is improved and prices are closer
to costs for the products and services bought by consumers and for
the supplies and equipment bought by firms. Thus innovations that
improve information to patients and/or providers, such as by making
price and quality information easily available, have an economic
value to consumers. Use of the Internet benefits consumers in a
variety of ways. What are the different ways the Internet...
You are given the following information about various annuities available in the market. All the annuities...
You are given the following information about various annuities
available in the market. All the annuities pay $100 at the end of
each year over the period of the investment. It is also given that
the spot rate of interest for 1 year maturity is 3%.
Period of investment (in years)
Price (in $)
2
190.89
3
281.96
4
369.53
Calculate the forward rates of interest for t = 2, 3 and 4. You
want to accumulate $10,000 after four...
When prices in the economy have not fully adjusted, we say that: A. Group of answer...
When prices in the economy have not fully adjusted, we say
that:
A. Group of answer choices
B. it is a period of time less than one year.
C. we are in the short run.
D. we are in the long run.
E. the market is not in equilibrium.
F. it is a period of time less than five years.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Question #1 C4H10O with a butanol combustion cycle (formation enthalpy-332,000 kJ / kmol) 25 per cent...
- Suppose a survey revealed that 19% of 494 respondents said they had in the past sold...
- Topic: Choose a company which are you are starting, and a main product or service that...
- 4. Why did the United States and the Soviet Union find themselves in a “Cold War”...
- The Facts: Ann and Bill decided to start a coffee shop. They agreed Bill would provide...
- MARGI sells different types of wine. Customers place orders to the most popular “Summer Wine” at...
- A firm's bonds have a maturity of 8 years with a $1,000 face value, have an...
ADVERTISEMENT