answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
IrinaK [193]
2 years ago
6

Clever tests to discriminate between alternative explanations. LaPorta, Lakonishok, Shleifer, and Vishny ("Good News for Value S

tocks," Journal of Finance, June 1997) study the returns on stocks on the few days surrounding their quarterly earnings announcements (relative to various expected return benchmarks). They find that on average, high-B/M stocks earn 0.9% around an earnings announcement. In contrast, low-B/M stocks earn an average of -0.1% around an earnings announcement. The difference is statistically significant.
Discuss whether the return pattern found by LaPorta et al. (1997) around earnings announcements is more consistent with the irrational expectations (behavioral) view, or the risk factor (efficient markets) view of the book-to-market effect, and explain your logic.
Business
1 answer:
yulyashka [42]2 years ago
8 0

Answer:

The answer to the above question is:

"The return patterns around earnings announcement is an example of behaviorial pattern exhibiting as more investors flock to buy the stock which has shown better earnings thus driving up the price. In an efficient market, this information would already be built into the price and thus there would not be any appreciable change in price post earning announcement".

Explanation:

You might be interested in
True or False: Cell phone chargers are considered hazmat products and cannot be stowed with items like books
Sauron [17]

Answer:

I would say false

Explanation:

the charger is like an appliance . if it isn't in use it's harmless . I don't know for sure.

3 0
2 years ago
If manufacturing overhead has been underallocated during the period, then which of the following is true?(a) the jobs produced d
Alecsey [184]

Answer:

The correct answer is B: the jobs produced during the period have been under-costed

Explanation:

Giving the following information:

If manufacturing overhead has been under-allocated during the period, then which of the following is true?

(a) the jobs produced during the period have been over-costed

(b) the jobs produced during the period have been under-costed

(c) the jobs produced during the period have been costed correctly

(d) none of the above

When manufacturing overhead has been under-allocated means that the actual costs incurred where superior that the estimated cost for the period.

7 0
2 years ago
Heidi ganahl's life story helps the employees and franchisees of camp bow wow understand _____.
GrogVix [38]

Answer: Culturally consistent decisions

Explanation:

The options are:

a The organizational structure

b The environmental complexity

c Behavioral substitutions

d Culturally consistent decisions

Heidi Ganahl's life story helps the employees and franchisees of Camp Bow Wow understand culturally consistent decisions.

Organizational stories are being told by people in order to recall certain things that has happened in an organization and to also emphasize culturally consistent decisions, assumptions, and actions.

4 0
2 years ago
Your local movie theater earns a total revenue of $40,000 per month when the price of a movie ticket is $8, and it earns a total
raketka [301]

Answer:

Inelastic

Explanation:

Elasticity of demand = percentage change in quantity demanded / percentage change in price

percentage change in quantity demanded =

35,000 - 40,000/40,000 = -0.125 = -12.5%

percentage change in price = $10 - $8 / $8 = 0.25 = 25%

Elasticity = -12.5%/25%= -0.5

Demand is inelastic because the elasticity of demand is a less than 1.

Elasticity of demand measures how quantity demanded changes when price change.

Demand is inelastic when a change in price has no effect on quantity demanded. Inelastic demand has a value of less than 1 .

Demand is elastic if a change in price has an effect on quantity demanded. Elastic demand has a value of more 1

Unitary elastic is when a change in price has the same proportional effect on a change in quantity demanded. Unitary elastic demand has a value of 1.

7 0
2 years ago
Country Breads uses specialized ovens to bake its bread. One oven costs $249,000 and lasts about 15 years before it needs to be
Svetradugi [14.3K]

Answer:

The equivalent annual cost of an oven is (A) -$74.839.43

Explanation:

Hi

<u>Known Data</u>

Operating cost=OC=\$34,300,n=15, VP=\$249,000 and i=14\%

<u>Computing total cost per year</u>

We are going to use the formula below with the known data.

A=\frac{VP}{\frac{1-(1+i)^{-n}}{i} } =\frac{249000}{\frac{1-(1+0.14)^{-15}}{0.14} }=40539.43. Then this is the fixed amortization cost per year.

Finally, we sum the fixed amortization cost per year and the operating cost:

Total cost per year=TCPY=A+OC=\$40,539.43+\$34,300=\$74,839.43, therefore the answer is  (A) -$74.839.43

3 0
2 years ago
Other questions:
  • A profit-maximizing firm's daily total revenue is $155 with 3 workers, $200 with 4 workers, and $230 with 5 workers. the cost of
    14·1 answer
  • Sarah transferred $450.00 from her savings account to her checking account. She’ll use the check register to record her transact
    5·2 answers
  • Lakeside Components wishes to purchase parts in one month for sale in the next. On June 1, the company has 11,000 parts in stock
    6·1 answer
  • Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores carry the same suit, but it i
    13·1 answer
  • Yvette Bradbury is an account representative at Commerce Savings Bank, earning $45,600 annually, paid semimonthly. She contribut
    10·1 answer
  • p. 82) Which of the following is NOT a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis? A. Organizatio
    11·1 answer
  • Jason is working at Sushow Motors. The position, as originally described, involved conducting research with customers. Instead,
    10·1 answer
  • Much fanfare was made about anthony's latest bonus in the office. he has always been a high performer. however, this year he rec
    13·1 answer
  • Basics Test - English EXIT PREVIOUS Paul is setting up a marketing/sales event at a community center where he is going to discus
    10·1 answer
  • Match each effect with the correct type of trade barrier
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!