Information and Rational Expectations
Part A. In Ch 13 they discuss about Information and Rational Expectations. You know there are informed traders in the stock market but you are uninformed. Describe what investing strategy that would guarantee that you will not lose money to the informed traders and explain why it works.
Part B. Find a reputable article on the web about how to make your market portfolio an effiecent portfolio (or how to win at the stock market). Describe the article (in a few paragraphs) and explain why or why not you think it might work. Post the website (url) of the article in APA format.
c) Using your company from Week 2.1, (tesla) look at the Balance Sheet and see what cash is there (list the name of the company and their Cash, and for what time period). Look to see if they pay any dividends – list what they pay if any. What should they do with the cash on their balance sheet now that you have reviewed ch 16 and 17? Explain your reasoning using the concepts from our book, and your knowledge of this company.