Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

You have assembled the following information about the daily trading volume for the following two sample groups of stocks during a recent five-day period. The Second Sample was randomly selected.

Stock Symbols & Daily Trading Volume - First Sample
Days
1 2 3 4 ? 5
MKC 614,700 411,900 450,400 585,000 455,500
DE 5,970,100 5,510,200 4,537,800 4,483,900 4,821,400
GE 55,448,100 55,083,800 58,463,500 49,358,900 42,454,200
PEP 7,575,900 6,250,500 7,750,700 4,832,000 4,796,400
K 2,358,500 1,846,700 2,586,300 5,664,900 1,309,700
Stock Symbols & Daily Trading Volume - Second Randomly Selected Sample
Days
1 2 3 4 5
KO 10,658,700 7,769,400 8,189,200 7,022,500 9,540,800
PG 10,057,200 8,894,300 11,790,300 7,240,100 8,873,100
GIS 4,516,600 4,086,300 2,994,000 3,102,600 2,585,900
F 75,778,900 91,842,200 88,736,600 61,363,200 110,748,300
AAPL 21,965,000 18,220,500 14,257,700 11,938,400 11,766,900

a. What are the average daily trading volumes for the two sample groups of stocks?
b. Would you expect the difference between the average daily trading volumes of the two sample groups of stocks to have an impact on the efficiency of the markets for the two samples? Why or why not?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M927682

Have any Question? 


Related Questions in Basic Finance

It is january 1 2018 and you have just won the lottery

It is January 1, 2018 and you have just won the lottery which pays you $1,000 per month for 50 years. It begins paying out on January 31st, 2025, which is after a seven year wait. Assuming an interest rate of 6% (annual ...

Why does eps decrease if a companies additional capital it

Why does EPS decrease if a companies additional capital it wants is obtained by issuing more shares? How would it affect a companies decision about issuing equity to try and raise their capital? What would be the firms d ...

Suppose you bought a five-year zero-coupon treasury bond

Suppose you bought a five-year zero-coupon Treasury bond with $ 1000 face value for $800. Answer the following questions: (a) What is the yield to maturity on the bond? (b) Assume the yield to maturity on comparable bond ...

Based on the following jbhs projected free cash flows to

Based on the following JBH's projected free cash flows to equity holders between 2019 and 2021, what is the total equity value of JBH using the  discounted cash flow model  if analysts forecast the company's free cash fl ...

The everly equipment companys flange-lipping machine was

The Everly Equipment Company's flange-lipping machine was purchased 5 years ago for $70,000. It had an expected life of 10 years when it was bought and its remaining depreciation is $7,000 per year for each year of its r ...

What circumstance would project evaluation methods be used

What circumstance would project evaluation methods be used and Define and explain the pros and cons of NPV, IRR, and Payback methods?

Prepare a amortization schedule for a five-year loan of

Prepare a amortization schedule for a five-year loan of $71,000. The interest rate is 7 percent per year, and the loan calls for equal annual payments. YEAR BEGINNING BALANCE TOTAL PAYMENT INTEREST PAYMENT PRINCIPAL PAYM ...

Consider the following scenario analysisrate of

Consider the following scenario analysis: Rate of Return Scenario Probability Stocks Bonds Recession 0.20 -4% 16% Normal economy 0.50 18  9  Boom 0.30 29  6  a.  Is it reasonable to assume that Treasury bonds will provid ...

Cannons corporation will pay a 400 per share dividend next

Cannons Corporation will pay a $4.00 per share dividend next year. The company pledges to increase its dividend by 4 percent per year, indefinitely. If you require a 13 percent return on your investment, how much will yo ...

How does the lack of liquidity affect your execution

How does the lack of liquidity affect your execution strategy? Does this affect your use of limit orders and market orders? (Please attach any known literature if possible so i can refer to it. If not, its fine!)

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As