Why does the efficient market hypothesis reduce the demand for financial advisors?

Answers

Answer 1

Part of a financial advisor's job is to allocate money in the best available asset or security (eg: stocks and bonds). So they look at market data and use mathematical models to help judge on where to put money. Their goal is to so called "beat the market", meaning they want to earn the best return compared to other players in the market. Doing so will allow them to "buy low, sell high" which is a common cliche in finance. Though it's a very good rule to follow of course.

The efficient market hypothesis says that whatever the stock price is currently, it reflects everything about that company. In other words, there are no hidden facts that may surprise investors to drastically change the price of the stock. All information is completely transparent. What this means is that anyone can determine where to put their money without the need for a financial advisor.

I don't think demand would be completely wiped out since even if in a 100% transparent environment, people would still prefer to have others manage their money or not want to deal with complicated math formulas. However, demand would be reduced to some degree. In reality, there are always hidden factors that don't fully contribute to the cost of a security, which is why the efficient market hypothesis isn't fully applicable in every situation. So this is likely why financial advisors are in demand and are paid well.


Related Questions

What is the value of square root 30 is between witch two integers
A-4and5
B-5and6
C-6and7
D-7and8

Answers

Answer:

b

Step-by-step explanation:

because

Please answer the screenshot I attached below

Answers

Answer:

i think the answer is

[tex] \frac{1}{ {x}^{ \frac{4}{3} }} [/tex]

what is one thousandth less than 0.061

Answers

Answer:

one thousandth is greater than 0.061

Step-by-step explanation:

Anyone help with this

Answers

Answer:

Anyone help with this

x = 3t / b

425 divided by 14 please i need to know fast

Answers

Answer:

30.3571429

Step-by-step explanation:

30.3
Explanation: calculator

arange the number line in the following spending order 20,-40,5-1,10​

Answers

-40 4 10 20 I think this is the answer I’m not sure

Below are two parallel lines with a third line intersecting them.

Answers

Answer:

x = 132

Step-by-step explanation:

180 - 48 = 132

Help me with this please it says how can you isolate the term f/3 in f/3 + 22 = 17

Answers

Answer:

Given:

[tex]\sf {\dfrac {f}{3}}+22=17 [/tex]

To find:-

[tex]\sf {\dfrac {f}{3}}[/tex]

Solution:-First write the equation

[tex]{:}\dashrightarrow[/tex][tex]\sf {\dfrac {f}{3}}+22=17 [/tex]

Now take 22 to the other side by which the "+"sign will turn "-".

[tex]{:}\dashrightarrow[/tex][tex]\sf {\dfrac {f}{3}}=17-22 [/tex]

Simplify

[tex]{:}\dashrightarrow[/tex][tex]\sf {\dfrac {f}{3}}=-5 [/tex]

[tex]\therefore[/tex][tex]{\underline{\boxed{\bf {\dfrac {f}{3}}=(-5)}}}[/tex]

Answer: Subtract 22 from both sides.

Step-by-step explanation:

f/3 +22 = 17

f/3 +22 -22 = 17 -22  Subtracting the same value from both sides keeps the equation equal.  

Then simplify. The +22 and -22= 0 They "cancel"   17-22 = -5

f/3 = -17  f/3 is now isolated-- by itself-- in the equation.

If you had to solve for f, the next step would be to multiply both sides by  3.


At a local baseball game, the concession stand has two different meal choices. You can get 7 hotdogs and 5
drinks for $41.00 or you can get 4 hotdogs and 8 drinks for $44.00. If the price of hotdogs and drinks is the
same for each meal, find how much it costs for an individual hotdog and how much it costs for an individual
drink.
per hotdog:

per drink:

Answers

Answer:

Each hotdog is $3 and each drink is $4.

Step-by-step explanation:

Let h be the number of hotdogs and d the number of drinks,

7h + 5d = 41

4h + 8d = 44

Let's eliminate h.  Multiply the first by 4 and the second by 7.

28h + 20d = 164

28h + 56d = 308

Subtrat the first from the second.

36d = 144

d = 4

Substitute back into one of the equations.

7h + 5(4) = 41

7h + 20 = 41

7h = 21

h = 3

Annalise withdraws $20.50 each day from her account for a week. how can you represent the change in the account for the week

Answers

Answer:

you can get some fries and chickent aint enough for me keep it going people

Step-by-step explanation:

Veronica take 1/3 of an hour to write 1/4 of a page of calligrahpy how long will it take Veronica to write one page

Answers

Answer:

b because it takes 1 hour to complete 3/4 of a page so 3/3 = 1 hour 1 1/3 =1 and a third of an hour

Step-by-step explanation:

Monthly, Juan's net earnings are $6,000, and expenses are $5,000. If Juan saves the difference, how much will Juan have saved after 6 years

Answers

Answer:

$72,000

Step-by-step explanation:

6000-5000=1000

1000x6 =6000

6000x12=72,000

On a coordinate plane, the x-axis is labeled Number of Days and the y-axis is labeled Number of Computers. A line goes through points (3, 36), (4, 48), (5, 60). The graph shows a proportional relationship between the number of computers produced at a factory per day. In three days, 36 computers are produced; 48 computers are produced in 4 days; and 60 computers are produced in 5 days. Find the unit rate of computers per day using the graph. Unit rate: computers per day

Answers

Answer:

12 is the answer ppl  hope  it helps you all

Step-by-step explanation:

Answer:

12

Step-by-step explanation:

i got it right on edg

Some algae contains up to 50% oil by weight. How much oil is in a 7.3-ounce sample of this type of algae?

This would help if you could solve anyone.

Answers

Answer: 3.65

Step-by-step explanation:

This question is asking basically what is 50% or 1/2 of 7.3.

Let's expand the number 7.3

Then, we end up getting 7.30.

We have to find 1/2 of 7.30.

[tex]\frac{1}{2}[/tex] of 7.30 = [tex]3.65[/tex]

Hope this helps you!

Steph bought a used bicycle restored it and then marked it up by 1/4 of the price she paid later she sold it for the marked-up price of $80 how much in dollar did steph pay for the bicycle ?

Answers

Answer: would be $64

Answer:

Steph payed $64 for the bicycle

Step-by-step explanation:

80/5=16

16×4=64

hopefully this helps :)


A bag contains 5 RED beads, 3 BLUE beads, and 4 GREEN beads. If a single bead is picked at random, what is the probability

Answers

Answer:

total number of beads :-

5+3+4=12

probability is :-

number of times a specific outcome has occurred

total number of possible outcomes

red beads - 5/12

blue beads - 3/12

green beads - 4/12

the above given fractions are the probabilities of each color bead.

Step-by-step explanation:

hope this helps, if yes please can u give me a brainly?

i would really apreciate it...

have a great day ahead :)

I need help please Will mark brainliest. Thank you so much.

Answers

The answer is, 168.....(extra characters)

A hot air balloon is rising at a speed of 100 m/min. If an observer is standing 200 m from the lift-off point, what is the rate of change of the angle of elevation of the observer’s line of sight when the balloon is 600 m high?

Answers

Answer:

dy/dt = (0)tan(π/3) + (4)sec2(π/3)(0.1)

dy/dt = 0 + 1.6

dy/dt = 1.6 mi/min

Step-by-step explanation:

We need to find out values for all of the variables:

The observer is not moving, therefore dx/dt = 0.

The observer is standing 4 miles away from the lift-off point, so x = 4.

The angle between the horizontal and the observer's line of sight is π/3, therefore θ = π/3.

The rate of change for the angle, dθ/dt, is 0.1.

The rate of change of the angle of elevation of the observer’s line of sight when the balloon is 600 m high is 0.05 rad/min.

Let θ be the angle of elevation of the line of sight from the horizontal. Since the hot air balloon is rising at a speed of 100 m/min, its vertical distance in time, t is d = vt = 100t.

Since the point of the observer is 200 m away( the horizontal distance), then tanθ = vertical rise/horizontal distance = 100t/200 = t/2

tanθ = t/2

To find the rate of change of the angle of elevation, we differentiate with respect to t.

So, dtanθ/dt = d(t/2)/dt

sec²θdθ/dt = 1/2

dθ/dt = 1/(2sec²θ)

At 600 m high, tanθ = vertical rise/horizontal distance = 600 m/200 m = 3

Given that tan²θ + 1 = sec²θ

dθ/dt = 1/(2sec²θ)

dθ/dt = 1/(2[tan²θ + 1])

Since tanθ = 3

dθ/dt = 1/(2[tan²θ + 1])

dθ/dt = 1/(2[3² + 1])

dθ/dt = 1/(2[9 + 1])

dθ/dt = 1/(2[10])

dθ/dt = 1/20

dθ/dt = 0.05 rad/min

So, the rate of change of the angle of elevation of the observer’s line of sight when the balloon is 600 m high is 0.05 rad/min.

Learn more about rate of change of angle of elevation here:

https://brainly.com/question/13932041

Jan tossed a coin 50 times and got a head 20 times. What is the
experimental probability? What is the theoretical probability?

Answers

Answer:

The standard answer for this is 50%.  

Step-by-step explanation:

  However, this is based on the implicit assumption that the coin is fair.

 

If there are reasonable grounds to doubt that the coin is fair, the theoretical probability must be based on observed statistics.   In this scenario, the probability is 60%.  

1. Identify each part of the exponent: (-4)3
Base =
Exponent =

Answers

-45 x -43 = ~34
ThTs my answer I hope it’s correct

A theater has 384 seats. Each row has 16 seats. The area model represents this situation.What is the value of x in the area model? Enter your answer in the box.​

Answers

Answer:

X = 4 because 20 times 16 is 320 than if you add 4 to the 20 you will get 24. 24 times 16 is 384. BOom thats your answer and i know because i just answered it.

Step-by-step explanation:

A park shaped like a rectangle. The diagram shows the how the park is split into a sports field and a playground. Let x represent the length in meters of the sports field. Write an expression to represent the area of the park as the sum of the areas of the sports field and the playground.

Answers

Answer:

20r + 310

Step-by-step explanation

For the first part.

The required expression is 20x + 310 which represents the area of the park as the sum of the areas of the sports field and the playground.

What is the expression?

Expressions are defined as mathematical statements that have a minimum of two terms containing variables or numbers.

Let x represent the length in meters of the sports field.

Here, the area of the sports field = 20 × x = 20x units

And, the area of the playground = 15.5 × 20 = 310 units

Now, the required expression to represent the area of the park will be :

⇒ area of the sports field + area of the playground

⇒ 20x + 310

Thus, the required expression is 20x + 310.

Learn more about Expressions here :

brainly.com/question/21751419

#SPJ2

If m∠ACD = 136° and m∠B = 42°, Find m∠A.

Answers

Answer:

Step-by-step explanation:

Hello

I see you are very confused by this problem. However, there is an easy way to solve this one.

It has been proved that the sum of all angles in a rectangle is always 180°. Here is a way to prove it:

x y

_______A_________

/\

/ \

/ \

/ \

___/_______ \__

B C

we have two parellel lines xy and BC. It is true that:

xAy = 180°

xAB + BAC + CAy = xAy = 180

xAB = ABC

CAy= ACB

=> ........

I'll let you finish with your great intellect ^_^

HOPE YOU LEARN WITH JOY AND GOOD GRADE

7(3x -4) = 49



can you help me

Answers

Answer:

3 2/3

Step-by-step explanation:

7(3x-4)=49

21x-28=49

21x=77

x=3 2/3

AB×6=BBB (playing with numbers.)

Answers

Answer:

A = 7

B = 4

Step-by-step explanation:

If u wanna know how i got this answer plz look at the comments below since it will delete my answer U-U

Find the surface area of this triangular prism. Be sure to include the correct unit in your answer.
18 cm
30 cm
24 cm
22 cm

Answers

18 cm is your correct answer

Tara is graphing the equation 4x + 2y = 10. Which of these shows the correct equation in slope-intercept form, slope, and y-intercept? Question 2 options: y = –2x + 5 slope = –2 y-intercept = 5 y = 4x + 5 slope = 4 y-intercept = 5 y = 2x + 4 slope = 2 y-intercept = 4 y = –4x + 5 slope = –4 y-intercept = 5

Answers

the answer should be : y=-2x+5

Each week as part of her workout, Monica walks 0.5 mile, runs 1.6 miles, and then walks 0.75 mile.

How many total miles will Monica walk and run in a year? Reminder: there are 52 weeks in a year.

Enter your answer in the box.

miles

Answers

Answer:

-2 or -5

Step-by-step explanation:

( shown in photo below )

9 ⋅ (-.5) what is the answer

Answers

Answer:

-45

Step-by-step explanation:

9x5=45, and since there is a negative, you put it before 45.

Hope I helped!

Please mark Brainliest!!!

can i get help here ?

Answers

It will be 10z-30
Because you are collecting like terms with -5z and +5z and it will give you 10z and 30 will be by it’s self because it has nothing to add or subtract with .
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