If real GDP in a year was $3,668 billion and the price index was 112, then nominal GDP in that year was approximately

A nation’s real GDP was $250 billion in Year 1 and $258 billion in Year 2. Its population was 120 million in Year 1 and 125 million in Year 2. What is its real GDP per capita in Year 2?

 Market efficiency implies that it is the form of the disclosure and not the information content that is important to investors.  

  A rational investor makes investment decisions based on maximization of his/her expected utility or wealth.  

One type of risk not covered by the CAPM is estimation risk.  

An efficient market is one where the prices of securities traded on the market at all times “fully reflect” all information, whether public or private.  

The CAPM model is used to determine the expected return of a security or stock, based on the riskiness (or beta) of the security relative to the market portfolio.  

CAPM stands for Capital Asset Proportionate Model.  

Management discussion and analysis (MD&A) in a company’s 10-K filing is a required disclosure by the SEC.  

Accounting information potentially reduces moral hazard based information asymmetry because accounting numbers can be used in compensation contracts and serves to monitor managements’ behavior.