The business writer michael lewis has quoted michael burry, a fund manager, as saying: "i also immediately internalized the idea that no school could teach someone how to be a great investor. if that were true, it'd be the most popular school in the world, with an impossibly high tuition. so it must not be true." do you agree with burry's reasoning? source: michael lewis, the big short: inside the doomsday machine, new york: w. w. norton, 2010, p. 35. a. no, according to the efficient markets hypothesis, attempting to beat average market returns is a futile exercise. b. yes, according to the adaptive markets hypothesis, if you could derive an adaptive model to forecast stock returns, it is possible to earn infinitely high profits. c. no, according to the adaptive markets hypothesis, attempting to beat average market returns is a futile exercise. d. yes, according to the efficient markets hypothesis, if you could derive an efficient model to forecast stock returns, it is possible to earn infinitely high profits.

Suppose that in an economy the structural unemployment rate is 2.2 percent, the natural unemployment rate is 5.3 percent, and the cyclical unemployment rate is 2 percent. the frictional unemployment rate is percent and the actual unemployment rate (in this economy) is percent.

crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?

On january 1, year 1, purl corp. purchased as a long-term investment $500,000 face amount of shaw, inc.’s 8% bonds for $456,200. the bonds were purchased to yield 10% interest. the bonds mature on january 1, year 6, and pay interest annually on january 1. purl uses the effective interest method of amortization. what amount (rounded to nearest $100) should purl report on its december 31, year 2, balance sheet for these held-to-maturity bonds?