Answer true or false to the follwoing statement, and explain “ Purchasing Power Parity (PPP) theory fails to explain the facts.”

Q: Which of the following are not assumptions of technical analysis?     All information is already…

A: The assumptions of technical analysis are:a. All information is already included in pricesb. History…

Q: Whether the firm uses the​ market-based approach or the​ cost-based approach for pricing​ decisions,…

A: Introduction: Market based approach: For calculating the selling price of Asset firm uses market…

Q: For what reason might a traditional NPV (net present value) analysis not be an appropriate means for…

A: Flexible manufacturing systems are a gathering of numerically worked machines associated with a…

Q: For technical analysis, based on patterns of historical prices, to have value, ______ form of market…

A: Weak form efficiency market hypothesis is an element of efficient market hypothesis which states…

Q: A weakness associated with cost-based pricing methods is that they do not allow for primary…

A: The cost based  pricing method is a method of pricing which is used to price the commodity face on…

Q: Selecting the method or procedure that yields less net income is an application of Select one: O a…

A: Accounting principles are the set of rules and instructions which should be followed while preparing…

Q: The pricing efficiency of financial markets can be expected to decrease if the cost of skillful…

A: Skilled financial manpower is very important in financial sector and valuation of assets in…

Q: conomics is concerned

A: To explain the correct option as,

Q: In general it argued that the lower of cost of market rule is supported most closely by which of the…

A: The lower of cost or market rule is related to valuing the inventory, the company should value the…

Q: a. The market value of the comps should be available.   b. The valuation object should be compared…

A: Share valuation is the process of determining the value of the shares based on certain factors.…

Q: Which of the following statements regarding economic capital and economic income is incorrect? (i)…

A: e (v) Explanation: e (v) is the incorrect statementEconomic income is the way for companies to…

Q: Inflation causes phantom sources of profit that may mislead even the most alert analyst. Select one:…

A: Inflation can indeed create what are sometimes referred to as "phantom sources of profit" that can…

Q: Explain with examples that economic incentives are not as complex as we thought.

A: Economic incentives are given to motivate a person to take a particular course of action . Economic…

Q: The semistrong-form of market efficiency states that O current market prices do not reflect any…

A: Semi-strong form of efficient market hypothesis suggests that stock market prices reflect all the…

Q: Summarize the reasons why behavioralfinance suggests thatthe efficient markethypothesis may nothold.

A: Introduction: Efficient market hypothesis claims that it is difficult to beat the market because…

Q: ate two reasons why the strong form of market efficient is important

A: Efficient market hypothesis is very important concept in the stock market analysis and understanding…

Q: .Which of the following is true for limit orders? a. They face adverse selection risk from noise…

A: Solution- Limit Order-A limit order is an order to buy or sell a stock at a specific price or…

Q: Define weak form tests of market efficiency and their main objective. Describe in detail the three…

A: As per Weak Form Tests of Market Efficiency, based on the record of volumes and price movements of…

Q: How would you explain Valuation Principles and Law of One Price in simple language to someone…

A: Valuation principles and the law of one price are fundamental concepts in economics and finance that…

Q: at causes market weights for WACC to be significantly different than the book value w

A: WACC is the weighted average cost of capital and is the benchmarke hurdle rate and is the cost of…

Q: Relative valuation has several disadvantages. Which of the following is NOT?   a. There is the…

A: In the context of the given question, we are required to find out the correct option from the…

Q: why buying on margin is less riskier than short selling?

A: Trading on margin is a process of borrowing funds from a brokerage firm in order to execute trade…

Q: Discuss the assumptions, approach, estimation, benefits, limitations, and criticisms of Arbitrage…

A: Arbitrage Pricing Theory is a multi-factor pricing model. Arbitrage Pricing Theory can be used to…

Q: [S1] Information traders can apply fundamental analysis to better assess the effect of the data…

A: Information traders -Such traders  can anticipate information announcement and have the capacity  to…

Q: Which of the following are not assumptions of technical analysis? History tends to repeat itself…

A: The fundamental analysis is the analysis of balance sheet and income statement of the company and…

Q: Discuss three forms of market efficient market hyphothesis and discuss whether this fact violates…

A: Efficient market hypothesis states that the prices of the shares reflect whole information and there…

Q: “JIT purchasing has many benets but also some risks.” Do you agree? Explain briey.

A: In Just-in-time (JIT) purchasing, goods and materials are purchased in a way that they are required…

Q: sorry, but the solution arbitrage profit is incorrect.

A: Here, Spot Exchange Rate per $                      1.2066 CHFSix Month Forward Exchange Rate per $…

Q: Does GAAP distinguish between fair values that are readily determinable from current market prices…

A: Generally Accepted Accounting Principles (GAAP):  A set of accounting principles, practices and…

Q: What are the three forms of Efficient MArket Hypothesis and what are the criticisms of each from the…

A: The Efficient Market Hypothesis means that the market investors have an entree to all information…

Q: nd has asked you to explain the difference between a market order and a limit order. demonstrates…

A: In stock market orders are issued by the investors to broker through stock exchange terminal for buy…

Q: Explain the Answer

A: Yes, it is possible for a business to have both negative accounting profit and negative economic…

Q: Is excess liquidity a serious issue? Would insufficient liquidity be much worse? Please discuss

A: Excess liquidity means that the company is holding excess assets in cash or liquid instruments that…

Q: Which of the following efficient market hypotheses assumes that all information is cost free and…

A: A market is Considered as efficient if: Intrinsic Value= Market Price Or A price of security fully…

Q: did hedging reduce volatility of the realized price?Answer Yes or No and explain

A: Hedging can be referred as a strategy that is used by the investors to reduce the risk associated…

Q: What if the seller lacks sufficient information to be able to accurately estimate returns?

A: A seller may not be able to make an accurate estimate regarding returns due to multiple factors like…

Q: Purchasing Power Parity (PPP) theory fails to explain the facts. explain whether true or false

A: Buying power parity is a method of comparing the absolute purchasing power of currencies and, to…

Q: Using common-size balance sheet percentages to project individual assets, liabilities, or…

A: In a common size balance sheet we show all different line items as a percentage of total assets.…

Q: Free markets work best when: a) Buyers and sellers have freedom to make choices. b) There are only a…

A: (a) When buyers and sellers have the choice to make but not in terms of price, as it is dependent on…

Q: Why does Non-GAAP earnings are controversial?

A: Definition: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to…

Q: Which of the following statements represent a weakness or limitation of ratio analysis? Check all…

A: The objective of the question is to identify the limitations or weaknesses of ratio analysis. Ratio…