What is market multiple analysis?

Q: Why are the following “effects” considered efficient market anomalies? Are there rational…

A: Portfolios of low price-earning (PIE) ratio have been shown to provide higher returns than high PIE…

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: What is purchasing power parity?

A: Purchasing power parity (PPP): It is one well known macroeconomic investigation metric for…

Q: Discuss the market efficiency and its three forms.

A: The efficient market hypothesis (EMH)- states that the markets are generally efficient as it…

Q: What are the three forms of market efficiency

A: It declares that money related markets are instructively effective, subsequently, an individual…

Q: Earnings per share can affect market prices of commonstock. Can market prices affect earnings per…

A:

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: The hypothesis that market prices reflect all publicly-available information is called efficiency in…

A: Efficiency of stock market is determined by the effect of information whether publicly available or…

Q: Define semistrong form of market efficiency

A: Answer: Efficient market is one where the market price constitutes a balanced estimate of…

Q: What is the d market book ratio?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: What is market multiple method?

A: The market multiple methods is a hypothesis of valuation, in view of the reason that comparative…

Q: Define the term current market value.

A: The current market value (CMV) gives parties interested in making a transaction the approximate…

Q: What is Market Value Added (MVA)?

A: The market value added is the difference of the current value of the company and the equity capital…

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 is meant by purchasing power parity?

A: Purchasing power parity It is a measuring of the prices in various other countries that utilizes the…

Q: What is an alternative trading system (ATS)?

A: Alternative trading systems are generally helpful for people like investors & professional…

Q: What is high-frequency trading (HFT)?

A: High-frequency trading, also recognized as HFT, is a trading technique used to convert a huge number…

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: Under what conditions is a market-based transfer price optimal?

A:

Q: Define weak form of market efficiency

A: Efficient Market Hypothesis is a hypothesis that states that the asset prices reflect all available…

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: Describe the market multiple approach.

A: Answer: A multiple market analysis is a method of financial modelling which assigns a value to an…

Q: What constraints affect dividend policy?

A: Stability of earnings is one of the important factors influencing the dividend policy. If earnings…

Q: Explain CMO Price Behavior and Prepayment Rates?

A: The question is based on the concept of Collateralized Mortgage Obligations (CMO) , interest rate…

Q: give empirical evidence about market efficiency stong form

A: Introduction : In simple words, strong form market efficiency hypothesis states that securities in…

Q: Explain a flat yield curve using the segmented market theory.

A: Mаrket  segmentаtiоn  theоry  is  а  theоry  thаt  lоng  аnd  shоrt-term  interest  rаtes  аre  nоt…

Q: what are the dividend constraints?

A: In the world of finance dividend constraints are a reality that companies and shareholders have to…

Q: What is purchasing power parity? How might afirm use this concept in its operations?

A: The question is based on the concept of equilibrium exchange rate in forex market, Purchasing power…

Q: How is it possible to have arbitrage in an efficient market? Explain. Answer :

A: Arbitrage by definition is the person who exploits the prices of the same asset class.

Q: The central issue of efficient market concens: O regulations O structure O participants O…

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

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: Why the following effects are considered efficient market anomalies? Are there rational explanation…

A: Market anomalies are referred to a situation where the stock prices are not changed as per the…

Q: Discuss the key assumptions of Arbitrage Pricing Theory (APT) model and the implications of these…

A: Solution- APT(Arbitrage Pricing Theory) is a multi-factor technical model supported the link between…

Q: Briefly explain Purchasing Power Parity?

A: Purchasing Power Parity (PPP) is a theory of exchange rate determination. Purchasing power parity is…

Q: Why Are Secondary Markets Important?

A: Secondary market: Secondary market is defined as a place where purchase and sale of securities is…

Q: What is the efficient market hypothesis? Briefly explain Fama’s (1970) three forms of the efficient…

A: Efficient market hypothesis- It is an investment theory which states that all informations about…

Q: Why does market bubble occur?Discuss.

A: A market bubble occurs when the prices of a stock rise extremely high than its actual fair value. It…

Q: What is the difference between primary secondary markets?

A: In the given problem we  need to select the correct option of the three options given.

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…