It is well known that the stock market e¢ ciently incorporates information. Which of the following statements is INCORRECT (does not make sense) assuming that the stock market is semi-strong form e¢ cient.(a) "The reported earnings of Caterpillar was much higher than investors expectations. Therefore, the Caterpillar stock price increased sharply in response to the earnings news."(b) "It is expected that the oil price increase will boost provits of Exxon Mobil during the next quarter. Therefore, Exxon Mobilís stock price should appreciate during the next quarter."(c) "Everyone expects the Federal Reserve to announce an increase of the interest rate tomorrow. Therefore, the announcement may not affect stock prices tomorrow."(d) "When the stock prices incorporate information efficiently, stock prices behave like random walks, i. e., their price changes (or returns) are difficult to predict."

Suppose that kenji, an economist from an am talk radio program, and lucia, an economist from a school of industrial relations, are arguing over health insurance. the following dialogue shows an excerpt from their debate: lucia: a popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits. kenji: i think it is oppressive for the government to tax people who take care of themselves in order to pay for health insurance for those who are obese. lucia: i disagree. i think government funding of health insurance is useful to ensure basic fairness. the disagreement between these economists is most likely due to . despite their differences, with which proposition are two economists chosen at random most likely to agree? lawyers make up an excessive percentage of elected officials. minimum wage laws do more to harm low-skilled workers than them. tariffs and import quotas generally reduce economic welfare.

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?

Almeda products, inc., uses a job-order costing system. the company's inventory balances on april 1, the start of its fiscal year, were as follows: