1. Why methods and tools of the statistics are so important in investment decision making.

Q: What advantage does the Sharpe Ratio

A: Sharpe ratio is also known as Sharpes measure or reward to volatility ratio. It is the ratio…

Q: As a Businessman and Entrepreneur, which do you think is more important between Return On Asset…

A: ROA is the return on assets and ROI is the return on investment.

Q: Consider the advantages and disadvantages of using the accounting rate of return as an investing…

A: This question explains about  the advantages and disadvantages of using the accounting rate of…

Q: d. Explain why NPV is considered technically superior to Payback and Accounting Rate of Return (ARR)…

A: There are various capital budgeting methods that can be used to assess or evaluate various…

Q: (Net income ∕ Total assets)

A: Operating Profit Margin: It shows the performance of the firm in generating operating profit from…

Q: Describe its significance along with the characteristics that determine the quality of a market?

A: A financial market is a market where people buy or sell financial securities at a low transaction…

Q: Explain what is meant by the internal rate of return of an investment and discuss its relationship…

A: Honor code Since you have asked multiple questions, we will solve the first question for you. If you…

Q: why net present value is considered to be superior to internal rate of return as an investment…

A: Investment- The purchase of an asset in order to generate income or capital gain is referred to as…

Q: On Estimating Risks and Return on Assets * Statement I: Portfolio risk can be reduced by…

A: Risk is an important parameter while making investments which plays a key role in making investment…

Q: What are the quantitative characteristics of the asset and how to measure.

A: Hello, since your question has multiple parts we will solve the first question for you. If you want…

Q: What is the preferred method of calculating investment turnover, residual income, and return on…

A: Introduction: It is a company unit that is assessed based on how its money is used rather than the…

Q: What is risk, and how does it affect decisions about investment?

A: Risk and return are related to each other while making investment.

Q: What is the main drawback of using income from operations to measure the effectiveness of investment…

A: Introduction: Investment centers are firms that invest in other businesses to increase their…

Q: What are the quantitative characteristics of the assets and how to measure them?

A: An economic resource that helps the businessman to conducting business activity effectively and…

Q: What role does the correlation what role does the correlation of two assets play in computation of…

A: The answer and the explanation can be seen below:

Q: Discuss the pros and cons of the accounting rate of return as an investment criterion.

A: Definition: Average rate of return method: The average rate of return is the amount of income that…

Q: Which of the following statements is true regarding the sensitivity analysis approach to investment…

A: In simple words we can understand the basic meaning of Sensitivity analysis " Whenever manager takes…

Q: Which of the following best explains the role of diversification as part of an investment strategy?…

A: Diversification refers to the investment strategy that can be used by an investors so that they can…

Q: Whenever you make an investment decision, you need to consider its impacts on the diversification of…

A: Investment decision and diversification go hand in hand. One should be careful while making an…

Q: The value of an investment can be defined in numerous ways. Which is FALSE?  a. It is the value…

A: There are many different types valuation method of the investment some depends on the cash flow or…

Q: Explain how differential weight to losses and gains effect investment decisions?

A: Prospect Theory assigns differential weight to losses and gains for making investment decisions.

Q: ith the use of an example, briefly explain the main difference between the ex-ante and the ex-post…

A: Main Difference between ex-ante and the ex-post opportunity cost of capital: Ex-post risk is…

Q: __________ considers the impact of changing one or more inputs or assumptions on the resulting…

A: Capital budgeting is one of the important process of financial management. By this procedure,…

Q: Which of the followings is NOT in the scope of investment planning? a. To develop a risk-free…

A: Financial planning is a term that refers to estimating a company's funding needs and determining how…

Q: Sensitivity analysis is concerned with determining how much variation in financial data, the…

A: Sensitivity  analysis is a monetary model that decides what target factors are meant for dependent…

Q: What is the investment center manager's preferred technique of calculating investment turnover,…

A: It is a unit of a firm that is evaluated based on the usage of its capital rather than the profits…

Q: “Explain the reasons why the net present value (NPV) method of investment appraisal is likely to be…

A: The Net Present Value (NPV) is a company's financial tool used to estimate the viability of…

Q: Why doesn’t an estimated absolute covariance number tell the investor much about the relationship…

A: Sample Covariance means the in which the investor has not much information about the rate of return…

Q: A realized return is the rate of return actually earned on an investment. Group of answer choices…

A: Return: Return is defined as the money attained or lost on an investment through certain time…

Q: 1. Define the components of holding period return. Can any of these components be negative? 2. How…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: describe the stages in the financial process and discuss the advantages of a process driving…

A: Financial Process: The term "financial processes" refers to the procedures and techniques that the…

Q: How important is risk to returns?

A: “Since you have asked multiple questions, we will solve the first question for you. If youwant any…

Q: Why does Portfolio analysis stimulates the use of externally oriented data to supplement…

A: Portfolio analysis involves the analysis of the different portfolios and then selecting the best…

Q: What is the investment center manager's preferred method for determining investment turnover,…

A: Introduction: It is a company unit that is assessed based on how its money is used rather than the…

Q: Why does the advantage of Portfolio analysis it stimulates the use of externally oriented data to…

A: Portfolio analysis refers to the one of the step in portfolio management where investor determines…

Q: How important is risk to returns and what are the key elements that must be analyzed in this regard…

A: Risk: The Cambridge dictionary gives one of the meanings of the word "risk" as:  "to do something…

Q: Which of the following are the key factors when determining asset allocation for an investment? I.…

A: Asset allocation can be defined as the strategy which involves allotment of assets of portfolio of…

Q: How to compare different assets in investment selection process?

A: “Since you have posted multiple questions, we will solve first question for you. If you want any…

Q: why do we need to quantify the investment risk and returns?

A: Almost all investments possess certain risks and return.

Q: Why are statistical approaches and tools important in investment decision-making?

A: This question explains about the statistical approaches and tools that are important in investment…

Q: Technically, the required return of an investment can be determined by determining the investments…

A: The required return on an investment is the return that is expected and assumed by an investor to be…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.