Operational efficiency and informational efficiency
Distinguish between Operational efficiency and informational efficiency?
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Operational efficiency and informational efficiency:
A) Operational efficiency concentrates on bringing buyers and sellers altogether at the minimum possible cost.
B) Markets show informational efficiency when market prices reflect all related information regarding securities at a specific point in time.
C) In an informational efficient market, the market prices adjust rapidly to new information concerning a security as it becomes obtainable.
D) Competition between investors is a significant driver for informational efficiency.
The often known as "cash flow" that is net income plus depreciation, is a flow of cash, but is this a flow to the company or to the shareholders?
Calculated betas give different information if they are acquired by using weekly, monthly or daily data.
Is the Free Cash Flow (FCF) the sum of the debt cash flow and the equity cash flow?
What did ‘better’ mean specified with Markowitz questioned regarding portfolio selection?
A company with a market capitalization of $100 million has no debt and a beta of 0.8. What will its beta be after it borrows $50 million (giving that there are no other changes and no taxes)?
What are Long-Term Debt and what are their main parts.
Who proposed a modern quantitative methodology for portfolio selection?
The part of the net income which is not distributed to shareholders goes to reserves (to shareholders’ equity). As dividends shows real money, reserves are real money as well. Is it true?
When valuing the shares of my company, I calculate the present value of the expected cash flows to shareholders moreover I add to the result obtained cash holdings and liquid investment. Is that correct?
Liquidity Ratios: Such ratios comprise the Current Ratio and the Quick Ratio or the acid test ratio. Liquidity ratios demonstrate the Liquid position of a company in the short term that is the capability of a firm to pay its obligations in short term.
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