Should the bid be lower than the ask for a market maker or a price taker? Explain

Q: Compute the market share, indicate if favorable/(unfavorable)

A: Variance refers to the difference between the two variables which are known as budgeted output and…

Q: What are the assumptions of efficient market hypothesis? Discuss.

A: The efficient market hypothesis (EMH) is a hypothesis theory which states that share prices reflect…

Q: Under what conditions is a market-based transfer price most likely to be used?

A: Transfer Pricing: It is termed as the cost which is charged by the one department of the company…

Q: How do margin trades magnify both the upside potential and the downside risk of an investment…

A: Margin trades refer to the trades in which an investor does not need to pay the full amount to take…

Q: What are the differences between market ordersand limit orders?

A: Market orders might not be executed external of market times or if trading in a specific stock is…

Q: Describe the Market-Value Analysis?

A: Market Value is a solid indicator of investor or shareholder capital. All things considered, what…

Q: What are some factors that acquiring firms consider when they set a bid price?

A: Three main factors are whether the purchasers observe the product offers worth, how many purchasers…

Q: What is the market model? How is it different from the SML forthe CAPM?

A: The market model is utilized to show how forces of supply and demand powers cooperate to decide…

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: Which of the following will not act as a demand shifter in real estate markets?

A: Consumer preferences for different architectural styles will not affect demand in real estate…

Q: Why are options being sold at prices higher than their strike value?

A: Option: An option is a special type of contract which gives its holder the right but not obligation…

Q: FIFO cost of goods sold?

A: Goods available for sale Cost of goods sold + Ending inventory As per LIFO method,   Cost of…

Q: Even if behavioral biases do not affect equilibrium asset prices, why might it still be important…

A: Answer: There exist two reasons why the behavioral biases do not impact equilibrium asset prices.…

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: What are the optimal prices and profits for selling the goods seperately?

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

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 sssumptions about market efficiency?

A: The theory that states that all the information available in the capital market is reflected in the…

Q: What does the lower-of-cost-or-market (LCM) rule require?

A: Lower-of-cost-or-market: The lower-of-cost-or-market (LCM) is a method which requires the reporting…

Q: What is market efficiency? Differentiate between weak and semi strong form efficiency

A: Market efficiency is the ability of markets to process the information quickly and generate the…

Q: Why do options typically sell at prices higher than their exercise values?

A: An asset produced by stock exchanges is a financial option. These are sold by investors and…

Q: which of the following could affect the price

A: Stocks are prone to systematic and unsystematic risks. Factors or risk that affect the entire…

Q: What is market price?

A: The price for the business is the prevailing demand for the purchase or selling of an asset or…

Q: Companies often have to increase their initial investment costs to obtain real options. Whymight…

A: The company spends huge capital on the projects that will add value to the organization but if the…

Q: What does the usage of technical analysis mean for the theory of market efficiency?

A: Market efficiency:- Market is said to be ‘efficient’ only if the price of every security in the…

Q: What is efficient market hypothesis

A: Efficient market hypothesis is an important theory and concept in the world of finance in general…

Q: What is market multiple analysis?

A: Answer: Market multiple analysis: A multiple analysis of market is a form of financial modelling to…

Q: the selling price have to be?

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: what are the assumptions about market efficiency ?

A: Market efficiency refers to the market situation where stock prices reflect all available &…

Q: Why do you think that having a price structure important?

A: Pricing strategies are the methods companies use to price products and services. Almost all…

Q: Determine what form of the theory of efficient market is being described in each item. Write W for…

A: IT is  a semi-strong form of  efficiency.

Q: Which type of market efficiency is not true? Why

A: An efficient market is one where the market price is unbiased and reflects all known information. If…

Q: When it comes to a treasury auction, how is the price that a competitive bidder must pay determined…

A: Treasury bills are government securities that are issued to raise funds for financing…

Q: How can I explain the rationale behind the Arbitrage Pricing Theory (APT) model, and discuss its…

A: The Arbitrage Pricing Theory (APT) model is the asset pricing model that considering the difference…

Q: If he is correct on the future price, did he make a wise investment?

A: Value of an investment increases with the period of time.  Also, the value of money at future point…

Q: What would marketers like consumers to do whendissatisfied? How can marketers encourage this?

A: Marketers are those people who form and execute marketing strategies and decisions related to it to…

Q: What effect does Risk-free rate have on call option price?

A: Risk-free rate is the rate of return from an investment having no risk or zero risk. In other words,…

Q: What is the efficient market hypothesis? Explain this concept

A: 1) Efficient market hypothesis refers that the current market price captures all  past, present and…