f securities markets are rational and efficient in that they fully and correctly include all available information into a company’s stock price, the resulting price will reflect investors’ unbiased expectations about the company’s future earnings and cash flows.   True or False

Q: All of the following are risks associated with buying stocks, except -- loss of interest payments if…

A: Stocks are based on market demand and supply and it is very volatile and risky.

Q: In order to arrive at an intrinsic value for the stock of a company when using the Corporate…

A: Corporate Valuation Model:- This model is also known as the cash flow method, it helps in suggesting…

Q: what is meant by “The money market is necessary but not sufficient for the liquidity of securities…

A: Solution- The money market is an organized exchange market where participants can lend and borrow…

Q: A) Evaluate the importance of market efficiency to the finance manager.  B) State and explain five…

A: Importance of market efficiency to the finance manager.   Fundamental Analysis: Examination…

Q: An _________________ is a person who performs an independent assessment of the fairness of a firm’s…

A: Since you are asked multi question we will provide the answer for one question only.  If you want…

Q: ing process, and hence investment markets are efficient, reflecting all available information in…

A: There are many theories in the finance which explain the behavior of investors and the market.

Q: Define stock repurchase. Evaluate the advantages and disadvantages to of stock repurchase. Explain…

A: A corporation may repurchase its own stock from the market in a process known as a share repurchase.…

Q: The role that a trader plays and the importance of the function to the financial markets

A: Financial markets can be defined as the market where financial assets or instruments are traded.…

Q: The way in which the price of securities determined in Financial Markets is:

A: The correct answer is b. Through frequent interaction between investors.

Q: Explain the statement “The money market is necessary but not sufficient for the liquidity of…

A: Money market instruments would be considered as investments under short term securities. These…

Q: discuss about Technical Analysis, Fundamental Analysis and Efficient Market Hypothesis(EMH) in Stock…

A: The Efficient Market Hypothesis (EMH) is a theory that states that all known information about…

Q: hich of the following is correct?   Transactions within the spot market can be used to mitigate and…

A: Hedging can be done by using forward and future and option market and can be used to mitigate spot…

Q: Tell whether the following statements describe the characteristics of stocks or bonds. e. Issues of…

A: Stocks are the shares held by owners of the companies. They represent part ownership in the…

Q:

A: Arbitrage trading is an investment strategy in financial markets where a trader buys and sells an…

Q: in what sense do market market value ratios reflect investors opinion about a share risk and…

A: MV ratios The usage of the market ratio is done in evaluating: P/E i.e. price to earnings ratio…

Q: A fundamental analyst uses the discounted cashflow method to value firms, and has a short-term…

A: Fundamental Analysis is a technique to value firms on the basis of their fundamentals i.e. their…

Q: explain the statement"The money market is neccessary but not sufficinet for the liduiidity of…

A: Money market is an instrument used to provide flow of short term funds in the economy. It consist of…

Q: Both individuals and companies monitor the stock market. Explain how their reasons for doing so…

A: individual monitor their stock price by the following steps 1) keep updated about the latest news…

Q: The weak form of the efficient market hypothesis states: All information is known by all market…

A: According to random walk theory, also known as the Efficient market hypothesis, there are three…

Q: Which of the following is TRUE about the strong form of market efficiency?     Insider information…

A: Market Efficiency Hypothesis (MEH) is an assumption which states that prices of the securities/stock…

Q: Why is the valuation method of valuing dividends (based on the present value of dividends) a more…

A: There are different methods of valuing a stock. One way is to determine the present value of all…

Q: Which of the following statement is true? a. In brokered markets, buyers and sellers confront…

A: Introduction: The primary market is where the new offerings are issued to the public. The companies…

Q: Sanjay believes that he needs to examine the fundamentals of a company to determine its intrinsic…

A: There are two main ways to determine or assess the value of a stock in the world of finance. The two…

Q: How can you put your strategy for investing in stock securities into action?

A: solution investing in stock securities requires understanding of the economy at large at first After…

Q: ders and debtholders differ in their claim of the firm’s cash flows? How does such a claim…

A: Introduction : In simple words, stock refers to the equity claim in a company under which the holder…

Q: The ______ is the rate of return that a firm must earn on its investments in order to maintain the…

A: Rate of return The profit or loss that an investor receives over a specified period is known as the…

Q: In the role of the Phillippines Stock Exchange, which of the following assures that no investor will…

A: PSE or Philippine Stock Exchange is referred to as the private non-profit organization as well as…

Q: Both stock and bond returns are based on the cash flows generated by the issuing firm. How do…

A: Shareholders : In simple words, the shareholders of the company refers to the equity stakeholders of…

Q: why is money market necessary but not sufficient for the liquidity of securities on the stock market

A: Money market (MM) is a place where short term (ST) securities are traded. Generally, governments or…

Q: Is stocks or bonds important to the company or just the investor?

A: The company issues ownership rights in the form of shares to the investors to raise the money from…

Q: Which is correct about financial securities? a. Financial securities guarantees return to investors.…

A: "Hi, Thanks for the Question. since you asked multiple question, we will answer the first question…

Q: Which of the following statements is false?   A.   Mutual funds are pool investor funds to…

A: Working capital is the capital which is required to operate day to day working of a business. It…

Q: Which of the following is not an impairment indicator for investment securities? Group of answer…

A: The objective of the question is to identify which among the given options is not considered an…

Q: What is the primary motivation of investors in performing security analysis? A-identify the best…

A: Analysis of tradable financial market securities is called as security analysis. Here the proper…

Q: Explain whether the following statements are true or false. Justify your answer and solve both the…

A: The term bonds refer to the debt instruments that are issued with a motive to raise debt from the…

Q: Explain why a company might issue convertible securities instead of straightforward debt or equity.…

A: Convertible security is an instrument , usually a bond or a preferred stock, that can be converted…

Q: The disposition effect:   a. Is the tendency of stock investors to sell their winning stocks and…

A: In finance disposition effect is related to behavioral finance. Disposition effect refers to the…

Q: Why do technical analysts look at the moving average of a company’s stock price, and why do they…

A: Moving Averages Analysis(MAA) is a tool which is helpful in determining the basic trend of the price…