Define binomial lattice

Q: Define Continuous probability distribution

A: Probability Distribution: It is the list of values where each outcome is linked with the…

Q: Define discrete compounding

A: Discrete compounding: It alludes to the process by which interest is ascertained at a few settled…

Q: Briefly describe the connection and the difference between CAPM and Single Index Model (SIM).

A: Capital Asset Pricing Model or CAPM referred to as the relationship between the systematic risk and…

Q: Define geometric-gradient-series?

A: When there is a change in the cash flows series whether it is positive or negative then the series…

Q: What assumptions underlie the EOQ model?

A: The model that helps in calculating the optimal amount of quantity needs to be purchase for…

Q: Explain Oligopoly, and its features.

A: Given, Explain Oligopoly, and its features.

Q: n of the

A: The right answer is C None of these answer choices.

Q: Explain noncumulative pari passu distribution?

A: Pari passu refers to equal footing in Latin. It is the situation where all the stakeholders of the…

Q: Define beta coefficient, b

A: Answer: Beta coefficient is a coefficient which leads to the measurement of stock volatility in…

Q: Define the term spread.

A: In financial aspect, spread can have several meaning. In common it defines the gap or difference…

Q: Compare static theory and pecking order theory.

A: Static trade-off theory is based on the works of Modigliani and Miller. It initially stated that the…

Q: What is factoring?

A: It is a money related service in which the business entity sells its bill receivables to an outsider…

Q: What is common size analysis?

A: Answer: Common size analysis that measures the percentage sums of each element on the financial…

Q: Define compounding

A: A compounding is the interest charged on interest. When any investment is made for certain years,…

Q: Define correlation

A: Correlation: Correlation is a statistical method that can display whether and just how strongly…

Q: Define Factoring.

A: Accounts Receivable: It refers to the amount of money due to the company from the debtors.

Q: Define binomial approach

A: Most organizations have credit policies created for providers or clients, so you can make exchanges…

Q: Define Beta coefficient

A: Beta coefficient shows the systematic risk of the assets. In simple words, the beta coefficient…

Q: What is meant by volatility clustering? Briefly describe two models that areused to describe data…

A: When the large changes in financial asset prices are bundled together that further leads to results…

Q: What is the Geometric-Gradient Series?

A: Geometric Gradient series is a series of funds that occur at every interval at decreasing or…

Q: Define Volcker rule

A: Volcker Rule is a regulation that implies restrictions on the banks to involve in the stock market…

Q: Formula for put call parity?

A: Put call parity Put-Call parity defines the value of same class European put and call options. Put…

Q: Define common size analysis

A: Financial statements are analyzed to determine the profit earning capacity of the business and also…

Q: What is Discrete Compounding?

A: Answer: Discrete compounding is nothing but a process by which value is measured at some fixed…

Q: What is alpha transfer?

A: The term ‘Alpha’ refers to the active return on investment. In other words, the excess return from…

Q: variable(s) that are qualitative

A: Qualitative variable is a variable that varies with volume of activity which cannot be quantified in…

Q: Define Correlation as a concept

A: Introduction: Usually for any two variables, the change in one variable allows us to forecast change…

Q: Define branch of decision tree

A: Decision tree analysis is an important tool of analysis in finance. Whenever, we are given different…

Q: Variance analysis SIS

A: Under variance analysis a standard is set for all costs, revenues etc. and this is compared with the…

Q: what is single index model?

A: Single index model refers to the asset pricing model that can be used to measure the risk and return…

Q: Define estimates.

A: Estimates are future predictions of something. For example at the beginning of the year a business…

Q: What is a cross rate?

A: Cross rate is an exchange rate of currency between two countries, but both countries are not using…

Q: Describe about the concept of COGS.

A: Cost of goods sold (COGS): Cost of goods sold is the accumulate amount of all direct cost incurred…

Q: Explain Black - Scholes Model, Binomial Model, Monte Carlo Simulation

A: Black-Scholes Model: It is a method that is used for pricing the options contract. It also derives…

Q: Define spin-out

A: Introduction: Spinouts helps the parent corporation by permitting it to emphasis on its core…

Q: Define spin-off

A: Companies going for a spin-off will generally create a unit with the same management structure &…

Q: Define signaling hypothesis (dividends)

A: Introduction: This question is based on the concept of dividend theories in capital structure is…

Q: Discuss the main difference between the single-index model and the Markowitz optimization model.

A: Single Index Model- This article is concerning the quality rating model in political economy. For an…

Q: Define Top-down analysis

A: Introduction: Analyst is the person who gathers the data after they interpret and validate the data…

Q: Define residual distribution model

A: The Residual Dividend Model or residual distribution model is a method deployed by company in which…

Q: How the MIRR is calculated

A:

Q: Define the term Discrete Compounding?

A: Answer: Banks usually use two types of compounding processes. They are Continuous compounding, and…

Q: Which of the following definitions correctly defines a distribution?

A: The correct answer is c. Company activities that make the product available to target consumers.

Q: Define decision tree

A: There are different methods for  analyzing risk in capital budgeting, they are classified into two :…

Q: Discuss the main and major difference between single index model and Markowitz optimization model.

A: The Single Index Model is an asset pricing model in which the returns on security can be interpreted…

Q: Explain Prepayment Assumptions?

A: Prepayment model : In simple words, A prepayment model is employed in banking to forecast the amount…

Q: Explain differential analysis

A: Differential Analysis involves understanding the purpose of different costs that may arise from…

Q: Define time-series analysis

A: Time series analysis is an important technique used in statistics in finance. It has been defined in…