Professional Custom Accounting papers: (2) Explain the fallacy of this statement: “I’d rather put my money into a single high-earning asset than in a portfolio of diversified investments; I’ll earn more money with the single asset.

Professional Custom Accounting papers: (2) Explain the fallacy of this statement: “I’d rather put my money into a single high-earning asset than in a portfolio of diversified investments; I’ll earn more money with the single asset.

(1) What are the differences among the weak, semistrong, and strong forms of the efficient market hypothesis?

(2) Explain the fallacy of this statement: “I’d rather put my money into a single high-earning asset than in a portfolio of diversified investments; I’ll earn more money with the single asset.

(3) How do the financial markets accommodate the needs of risky firms and safe firms?

(4) General accounting practice is based on the accrual concept. Explain what this means and briefly describe how this compares with the financial manager’s focus on cash.