Efficient Market Hypotheses
Write Efficient Market Hypotheses in brief?
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Efficient Market Hypotheses:
A) The prices of securities adjust as the buying and selling from investors lead to the price which truly replicates market’s consent. It reflects the market’s effectiveness.
B) Market efficiency can be described at three levels—strong form, semi-strong form, and weak form.
Benefits of working capital requirement estimation: • Helps to judge the efficiency of utilization of working capital in generation of sales • Cost of capital aspect
Value Chain: The value chain is a theory from business management that was first described and popularized Michel Porter in his 1985 best seller, Competitive Advantage: Creating and Sustaining Superior Performance.
Regarding the WACC which has to be applied to a project, must it be an expected return, the average historical return or an opportunity cost on similar projects?
AB Corporation has 16% cost of equity, 35% tax rate, and debt-to-equity ratio of 30%. XY Corporation has 30% tax rate and debt-to-equity ratio of 40%. Both AB and XY are in the same business of selling automotive parts. If the riskless rate is 4% and the expected retu
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Who demonstrated that how to match theoretical and market prices for normal bonds?
Active vs. Passive fund managers: Passive fund managers adopt a long term buy and hold strategy. Usually, stocks are purchased so that the portfolio’s returns will track those of an
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Who proposed a modern quantitative methodology for portfolio selection?
Crawford Corporation is planning to lease a machine for the next 4 years for an annual lease payment of $3,000 paid in advance, plus a non-refundable initial fee of $3,000. There is a 1-year delay for the tax benefits of leasing. Crawford may buy the machine, deprecia
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