Define the term predictive value.

Q: What is sensitivity analysis? Explain.

A: Financial models refer to the summary or brief of a company's performance, on the basis of the…

Q: Define actuarial rate of return

A: Definition: Actuarial rate of return is the expected value of losses of an insurance company that…

Q: Define then discuss Value-at-Risk.

A: The stock market is full of new policies and procedures. It get impacted by change in the government…

Q: Explain the term sensitivity analysis

A: Sensitivity Analysis is a tool used in financial modeling to study how independent variable values…

Q: What is the incremental analysis?

A:

Q: What are risk assessments?

A: Risk assessment means identification of risk faced by a business organization that hampers it from…

Q: What is Gordon model?

A: Intrinsic value of a stock is based on the internal information of an organization. That is, market…

Q: eristics?

A: Step 1   Risk is defined as an occurrence that harms financial performance and/or reputation as a…

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: How to Estimate the  Variable Consideration?

A: Revenue:   It is the income generated by the business over their regular business operations.

Q: What are value drivers?

A: Answer: The basic determinants of the cash flows of a project or primary factors in project…

Q: Define Net realizable value.

A: Net realizable value is the expected cash to be received against a given asset.  Thus, Net…

Q: Explain pure expectations theory

A: It estimates the future interest without considering the maturity risk. According to the expectation…

Q: Explain positively correlated

A: Positive correlation: It's a connection between two factors that move the two factors pair — that…

Q: Define sensitivity analysis

A: The process to evaluate the effect of change in one variable on the end result of a project is…

Q: Describe the benefits of benchmarking.

A: Benchmarking is a way to measure something in corporate environment, it is also used to promote…

Q: What is a key performance indicator?

A: Key Performance Indicator: Key performance indicator is the measurement metric used to evaluate the…

Q: Define the term PW criterion?

A: Present worth is a systematic identicalness technique where cash flows of a task are limited at…

Q: Define correlation

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

Q: Explain the Sensitivity Analysis?

A: The sensitivity analysis is utilized to comprehend the impact of a lot of autonomous factors on some…

Q: How do you explain or interpret predictive model information?

A: Meaning- Predictive Model As the name suggest, where with the help of historical figures or even…

Q: Consider REMICs?

A: A real estate mortgage investment conduit (REMIC) is a difficult puddle of mortgage securities…

Q: Define variable consideration.

A: Variable considerations: Contracts having a degree of variability in the specified transaction…

Q: Explain Present Value?

A: Present value is the current value of a future sum of money or value. Present value is useful to get…

Q: Describe how to estimate variable consideration.

A: Revenue: It is the income generated by the business over their regular business operations.

Q: Define net realization value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: How is benchmarking beneficial?

A: Benchmarking is a measure which determines a company's competitive position through comparing its…

Q: Explain the concept of a present-value analysis.

A: Present value (PV) is discounted value of future cash flows to be received at a particular rate of…

Q: Describe the Internal-Rate-of-Return Criterion?

A: Internal rate of return (IRR) is defined as the rate of discount at which the NPV of human capital…

Q: Define Covariance?

A: Portfolio management is a dynamic decision making process about investment. It is a continuous…

Q: Discuss the concept of sensitivity analysis

A: Financial analysis is the process of analyzing and estimating the financial data and information…

Q: Explain Expectations Theory?

A: Expectations theory attempts to predict what short-term interest rates will be in the future based…

Q: What is the difference between positive and negative predictive value?

A: Positive predictive value is the probability that subjects with a positive screening test truly have…

Q: Define scenario analysis

A: Scenario means a situation or circumstance which is influenced by various factors. Various if and…

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: what is a provable intrinsic value? can you give a example

A: Intrinsic value of a stock is its fundamental value. This is calculated by taking in to…

Q: illustrate with an example how can we determine the IRR?

A: IRR is a method that tells the company how much returns the company will earn on the amount spent on…

Q: Explain an example of net realizable value.

A: Net realizable value:   Net realizable value is the net amount of receivables which a business…

Q: What does RI measure?

A: Residual Income: Residual income is the income earn over the minimum rate return of the company. In…

Q: Explain real options

A: Introduction: Options are one of the derivative contracts which involve two parties, contract buyer…

Q: What is view modeling?

A: Definition: View modeling: The modeling technique used for the creation of an individual REA diagram…

Q: Describe briefly the importance of Cost-Benefit Analysis in the selection or development of a…

A: Cost-benefit analysis is an approach to estimate the strengths and weaknesses of a system and…

Q: What is notional value?

A: Notional value is used to value the underlying asset. In simple words it tells how much of value a…

Q: Define value at risk (VaR)

A: Risk is referred as uncertainty or loss. Financial risk is referred as the variability of actual…

Q: Define the term opportunity cost, and give an example of one.

A: Opportunity cost: It is the benefit which is foregone by choosing next best alternative. In mutually…