correlated

Q: In the percentage of sales approach of financial forecasting, the balancing of assets and…

A: Financial forecasting is a process in which financial analysts estimate and project the financial…

Q: How can the Present-Worth Comparison be done?

A: The present worth method of comparison will diminish the cash flows of every choice to time zero by…

Q: Summarizes the IRR computation for a mixed investment?

A: IRR for Mixed investmentBalances of project cash flow are both positive as well as negative. The…

Q: Apply the procedure to find the true IRR, or return on invested capital, of the mixed investment?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: Why do most assets of the same type show positive covariances of returns with each other?

A: Covariance is a way of measuring the directional relationship between the returns on two assets and…

Q: What is the standard deviation of asset​ M?

A: Standard deviation tells us how much the expected vary from the actual result.

Q: Which of the two methods of estamting uncollectable provides   for the most accurate estimates of…

A: Allowance method It is a method for accounting bad debt expense, where uncollectible accounts…

Q: How is can CAPM, Sharpe ratio, Treynor measures and Jensen’s Alpha be used to maintain positive…

A: The performance of portfolio or investment should not evaluated only using the return of portfolio…

Q: Assess the standard deviation factor's significance in comparing assets critically.

A: This question explains about assess the standard deviation factor's significance in comparing assets…

Q: Expected return and standard deviation a.  What is the expected return of asset​ b?

A: The expected return is the return that an investor expects on its investment under various…

Q: Summarize the basic procedure of Net-Present-Worth Criterion?

A: Step 1: Initially ascertain the initial investment of the initial outlay amount (CF0). The initial…

Q: Classify method of comparing economic worth as a ranking method or as an incremental method. a. CW…

A: There are various methods that are used to compare investment alternatives on the basis of maximum…

Q: Which of the following should not be included as an application of the rate of return concept? rate…

A: As per the guidelines, only one question is allowed to be answered so, I am answering question no.…

Q: What is the difference between the possible returns and the expected return?

A:

Q: The net present value of an investment represents the difference between the:

A: The Answer :

Q: What is the quantitative disclosure of lessor?

A: Definition: Lease: Lease is a contractual agreement whereby the right to use an asset for a…

Q: How would you characterize the correlations of returns of the two assets making up each of the two…

A: Portfolio can be defined as an investment which consists of multiple stocks. The objective of an…

Q: What information would be required to compute the risk-asset ratio under Basle I?

A: The risk asset ratio (RAR) measures the amount of a bank's total regulatory capital in relation to…

Q: it can easily show that the sfp is balanced and separates assets from liabilities and equities

A: The term "assets" refers to anything that a firm owns. This does not necessarily suggest that the…

Q: What is meant by partitioning the internal rate of return? Why is this procedure meaningful?

A: Internal rate of return is defined as the annual rate of earnings on an investment and unlike income…

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: The difference between the expected return and the actual return is referred to as the unexpected…

A: The excess amount over invested value that an investor estimates to realize over horizon of…

Q: Why may the net-present-value and internal-rate-ofreturn methods yield different rankings for…

A:

Q: the assets' risk is the asset returns a

A: Step 1   Covariance is a statistical measure of how two assets move concerning each other. It…

Q: Which one of the following methods of analysis is most appropriate to use when two investments are…

A: Capital budgeting techniques such as internal rate of return, net present value method, average…

Q: Explain the risk-return trade-off for liquid assets.

A: Risk return trade off tell relationship between the risk and return.

Q: Describe relationship between risk and profitability.

A: Risk and profitability have direct relation. Lower the risk, lower is the return and Higher the…

Q: How can we invest in two assets with similar return characteristics?

A: An asset is something that provides benefits in the future to its owner. There are two types of…

Q: Present the internal rate of return criterion and its strengths and weaknesses.

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

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: What should be done to apply rate-of-return analysis correctly?

A: Rate of return: It can be defined as the rate of interest that has been earned by the company on the…

Q: are return on investment, residual income, and EVA qualitative components?

A: Qualitative components refer to the intangible effect of the events and transactions of business…

Q: How can we invest in two assets with dissimilar return characteristics?

A: Diversification is one of the tactics to keep in mind while forming a portfolio. Investing all the…

Q: is CAPM, Sharpe ratio, Treynor measures and Jensen’s Alpha used to Evalua

A: Step 1   Portfolio management involves trading between risk and return. Most novice investors make…

Q: escribes the relationship between risk and return.

A: Risk and return are directly related.

Q: How can we invest in multiple assets with dissimilar return characteristics?

A: Diversification is one of the tactics to keep in mind while forming a portfolio. Investing all the…

Q: Describe the process to invest in two assets with similar return characteristics?

A: The investment in any asset depends upon the risk and return of the particular asset and security.…

Q: Evaluate the standard deviation factor's significance in comparing assets critically.

A: Answer: Concept: Standard deviation is the concept that helps us to analyze volatile market for…