Ask Question
BusinessBusiness
11 November, 05:13

At a cocktail party, your co-worker tells you that he has beaten the market for each of the last 3 years. Suppose you believe him. Does this shake your belief in efficient markets?

+5
Answers (1)
  1. 11 November, 07:11
    0
    No.

    Explanation:

    Remember that several assets trade in markets; the high risk and low risk all together.

    For example, an individual trades a higher risk asset once each year for the last three years should have higher returns.

    However chances are high that someone who trades another asset may not be able to beat the market (earn an investment return above the performance standards). In conclusion it is usually possible but not in all cases.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “At a cocktail party, your co-worker tells you that he has beaten the market for each of the last 3 years. Suppose you believe him. Does ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Hogan Company has $1,000,000 of bonds outstanding. The unamortized premium is $14,400. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption? a. $10,000 gain b. $4,400 loss c. $10,000 loss d. $4,400 gain
Answers (1)
What key factor kept the copernican theory from being widely accepted at first?
Answers (1)
On January 1, Pacer Corporation issued $2,000,000, 13%, 5-year bonds with interest payable on July 1 and January 1. The bonds sold for $2,197,080. The market rate of interest for these bonds was 11%.
Answers (1)
Shawn is planning a bus trip across town that involves three buses. Bus 1 travels between Shawn's house and downtown, and it leaves every half-hour starting at 7:20 AM. Shawn will need to be on bus 1 for 1.2 hours.
Answers (1)
The name of organizations (such as center for disease control) can replace what in the in-text citation?
Answers (1)
New Questions in Business
Robot Corporation is liquidated, with Marty receiving property having an adjusted basis of $60,000 and an FMV of $90,000. The property is subject to a $80,000 mortgage, which Marty assumes. Marty's basis in the Robot stock surrendered is $50,000.
Answers (1)
Sales and commission are based on selling price, not the costs you have been provided. Labor: 13.8 hours at 18.75 per hour Overhead: 92% of labor Material Costs: $65.
Answers (1)
When airbnb customers in malibu start paying hotel taxes, this will have the potential to raise the equilibrium price in this market and, therefore, decrease efficiency.
Answers (1)
Curtain Co. paid dividends of $14,000; $17,500; and $21,000 during Year 1, Year 2, and Year 3, respectively. The company had 2,400 shares of 7.0%, $100 par value preferred stock outstanding that paid a cumulative dividend.
Answers (1)
In order to accomplish the productivity plan, several Subject Matter Experts from various parts of the organizational have been enlisted. As a result, you have noticed friction and conflict among team members.
Answers (1)
Home » Business » At a cocktail party, your co-worker tells you that he has beaten the market for each of the last 3 years. Suppose you believe him. Does this shake your belief in efficient markets?
Sign Up Forgot Password?