Are you convinced that the APT model is superior than CAPM? If yes or no, why?

Q: Can any one suggest me to check the relationship between human rationality in investment decision…

A: All investment choices are inalienably logical since one's hard-earned cash is being invested.…

Q: Which is better from the investor's perspective

A: The Answer

Q: is the intuition behind multiples or comparables valuation? What are the advantages of this m

A: Multiple method is very common method of valuation of stock in market.

Q: CFDs are more useful for speculation and not really useful for hedging? Do you agree

A: Contact for difference is a financial derivative which is an agreement to exchange the difference in…

Q: Describe the approaches for Comparing Defender and Challenger?

A: The following are the approaches for comparing defender and challenger: Cash flow approach: Treat…

Q: Mazen is not keen on collecting facts and information while solving problems. He is spontaneous in…

A: Decision-making could be defined as the process of choosing the best alternative out of several ones…

Q: Why the limitation of portfilio analysis is itsuggests the use of standard strategies that can miss…

A: A portfolio is a collection of various investments. Portfolios are a vital part of a corporation…

Q: Is Fair Presentation the same with Faithful representation? with wxplanation.

A: Fair Presentation and Faithful Representation are two qualities that every important financial…

Q: “CVP analysis is both simple and simplistic. If you want realistic analysis to underpin your…

A: CVP analysis refers to the cost-volume-profit analysis which describes the change in the operating…

Q: a. Which process would you use if you use an optimistic decision-making criterion? b. Which process…

A: CVP Analysis stands for Cost Volume Profit. CVP Analysis is used to consider the various figures…

Q: In present worth analysis, the alternative option with the present worth among alternatives is the…

A: The investment opportunity where investment selector or analyst is only left with the option to…

Q: Briefly explain the assumptions of CAPM

A: Capital Asset Pricing Model (CAPM) is a measure used for determining the price of risky assets.…

Q: “Prevention is much cheaper than external failure.” Do you agree with this statement? Why or why…

A: There are 4 types of quality costs which are as follows:

Q: Why is the NPV preferred over the IRR?

A: Net Present Value is a method of finding the profitability of a project by discounting future cash…

Q: What is a reasonableness test?

A: Reasonableness tests is an analytical procedure used to examine the validity of the accounting…

Q: A project with a negative NPV should be rejected. O True O False

A: Net present value  = present value of future cash inflows discounted at desired rate of return -…

Q: Do you think the Ricardian Equivalence is realistic?

A: Ricardian equivalence theory : In simple words, Ricardian equivalence can be understood as an…

Q: Why is it more accurate to describe the subject matter as CVP analysis rather than as breakeven…

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: Indicate whether the statement is true or false, and justify your answer.Economists agree that any…

A: During the period of inflation or unemployment, government announces economy boosting fiscal…

Q: What alternatives are available to Wilkinson and Walker to deal with this situation, and what are…

A: Introduction: When a person or organization becomes insolvent, it is unable to meet its financial…

Q: For practical applicationsas opposed to theoretical considerations, which ismore relevant, the CML…

A: Security market line (SML) or Capital market line (CML): The capital market line appears the…

Q: What is the risk of Incorrect Acceptance?

A: Risk of incorrect acceptance: The risk that the sample selected by the auditor may show that there…

Q: Is the accept-or-reject decision rule the same as in the simple -investment case? Explain how?

A: Yes, accept or reject decision rule is the same as in the simple investment because accept or reject…

Q: Which of the following hypotheses is not included within CA/DT theory? Weathering Allostatic Load…

A: Weathering is the Hypotheses which is not Include within CA/CD Theory- Weathering is that the…

Q: Why are these coming up as wrong?

A: Step 1 Journal is the part of book keeping. In this Interest is due or outstanding at market rate…

Q: payback period, NPV, and IRR always lead to the same decision? Why or why not? If not, which one…

A: Step 1   One of the most essential choices a business owner or management will ever make is capital…

Q: Does the MM theory appear to be correct according to either empirical research or observations…

A: The question is based on the concept of Modigliani Miller (MM) approach of capital structure and…

Q: Is "true and fair view" the same as truth? Give reason for your answer

A: true means that it is in accordance with truth or reality. fair means to be without any bias

Q: What do you mean by null hypothesis, how to test the hypothesis give the best examples?

A: In common parlance, hypothesis is an assumption regarding anything and that assumption is based on…

Q: Are you agree with the phrase (sentence): "In the following case, a risky person may prefer project…

A: formula  Expected NPV  = Net Present Value × Probability  Standard deviation is a measure of risk.…

Q: When we work with the breakeven point, how important is it to understand what a decision variable…

A: The question is related to Marginal Costing. The break-even point is that level of sales at which…

Q: What is Roll’s critique of CAPM tests?

A: Capital asset pricing model is a model that is used to estimate the expected return on an asset. In…

Q: Is my answer correct?

A: Hi student Since there are multiple questions, we will answer only first question.

Q: the answer you give is not an option.

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Write down the main ideas of Adam Smith, and identify the similarities and differences with…

A: Adam Smith is considered as a father of economics most of the theory that are given and relevant…

Q: t is objective?...

A: Objective vs subjective trading: Most traders follow either an essentially objective or subjective…

Q: Why is it helpful to analyze risk in comparison to all of the other potential rewards?  Why is it…

A: Risk Analysis  It is done because it helps in the identification as well as in the assessment of…

Q: Why is it more accurate to describe the subject matter of this chapter as CVP analysis rather than…

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: ving alternatives represents the correct balar admission of Mqithwa?

A: The right answer is option B 123.00

Q: What is a goingconcern problem? What factors can contribute to such aproblem?

A: Given: To analyse about the going concern problem and its factors contribution as follows,

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.