Business Administration - Financial Planning RFC225 Final: CSC Part 2Online Questions and Answers
16 Oct 2017
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Chapter 13: which theory suggest that investors make intelligent decisions after weighing all available information, rational expectation hypothesis, the rational expectation hypothesis assumes people are rational and make intelligent economic decisions after weighing all available information. In a symmetrical triangle formation, the stocks trade in a fairly narrow, defined area for sometime due to a fairly even struggle between buyers and sellers. Increase in price: the efficient market hypothesis assumes that profit-seeking investors in the marketplace react quickly to the release of new information. The neckline is the resistance line for the formation. If prices break through the neckline, it is a bullish signal and investors should start to buy stocks: the expected dividend per share on abc inc. is . The required rate of return on investments of similar risk is 10 percent and abc dividends are expected to grow at a rate of 4 percent annually.
