Based on the Finical accounting theory( William R. Scott)Ch1-CH5

please expain

Sharp Ltd. operates under ideal conditions with the following circumstances: Operates a single asset with a one year useful life Asset will have no value after one year and no disposal costs Interest rate economy wide is 5% The asset will generate $300 if the economy is good and $100 if the economy is bad and the income will be received on the last day of the year . There is a 50% chance that the economy will be good, and 50% chance that the economy will be bad. Round all figures to two decimal places What is the amortization of the asset in year 1 assuming the economy is bad? $190.48 $140.48 $240.48 $290.48 $300.00 $100.00 Celeste believes that nearly all value relevant information about a firm is promptly released to the market. However, there is so much information out there she has no time to read it and has a hard time understanding it. If Celeste's beliefs about the size of the publicly available information set are correct, would you advise her to stay out of the market because of her inability to read and digest all the information? Why or why not? Celeste should stay out of the market because the market is inefficient when investors are not knowledgeable Celeste should stay in the market because the market is efficient in the strong form Celeste should stay out of the market because she could make a wrong decision and lose money on investments Celeste should stay out of the market because there is insider trading Celeste should stay in the market because nave investors are price protected