Does it matter which beta is used, and if so, whichis best?

Q: Why are CMOs overcollateralized?

A: CMO is the abbreviation used for collateralized mortgage obligation. It uses collaterals which are…

Q: What is the holding company's beta?

A: Beta refers to the concept of measuring the expected movement of stock in the overall market as a…

Q: What is the advantages and disadvantages of turnkey systems?

A: Introduction; A turnkey system is when the company develops, builds, and tests a manufacturing…

Q: What are the advantages and disadvantages of  FIFO?

A: First-in-First-Out:  In First-in-First-Out method, the costs of the initially purchased items are…

Q: What is the project’s PI?

A: The PI index the profitability index of the project. The shows the profitability of the project…

Q: What exactly are ESOPs? What are some of its benefits and drawbacks?

A: Introduction: ESOP: Employee stock ownership plan is retirement plans for employees of the company…

Q: What is the Black Scholes Model?

A: Black Scholes Model is an option pricing model.

Q: What is levered beta?

A: Levered beta: Levered beta monitors the company’s risk with equity and debt in its structure of…

Q: what is the firm's beta.

A: We know that Cost of equity = Risk free return + beta*(Expected market return - Risk free return)

Q: What is fundamental beta?

A: Introduction: Beta is nothing but a metric used to assess a portfolio’s uncertainty or risk, with a…

Q: When might NPS not be a good predictor of firmgrowth?

A: At times, the NPS might not be a good indicator of predictor of firm's growth as there are many…

Q: What are the advantages of the scattergraph method over the high-low method? Thehigh-low method over…

A: Introduction: Cost accounting is beneficial since it can demonstrate where a corporation spends…

Q: Are these good advantages and disadvantages about RRSP’s? What can I include and remove?

A: RRSP or registered retirement savings plan is a retirement savings plan for employees and self…

Q: What is beta?

A: Beta is the relativeness of the stock return with market returns. If the beta is more than 1, stock…

Q: Explain about the Black–Scholes model.

A: Black Scholes option pricing model is probably the most commonly used option pricing model in…

Q: What are all the possible values of Beta and what do they mean?

A: Beta is referred as a measurement tool of volatility or market risk. Beta of a security or an…

Q: Is an higher NPV better than a lower NPV and why?

A: The net present value is the difference between sums of the present value of cash inflows and…

Q: ut how is this related to CAPM and beta?

A: The Capital asset pricing tells that the how much should be required rate based on the risk of the…

Q: suitable behavioral model?

A: Behavioral Model: Behavioral Model from its name only suggests the study of behavior. The study of…

Q: What are the advantages and disadvantages of  LIFO?

A: Last-in-First-Out: In Last-in-First Out method, the costs of last purchased items are considered as…

Q: What are the advantages and disadvantages of using MUS? Under what conditions is it best used?

A:

Q: Why do we enter PV and FV as a negative when calculating TVM problems?

A: The term time value of money (TVM) states that the money losses its value over time. It means that a…

Q: What is the purpose of using the high-low method?

A: High-low method: In the high-low method, the semi variable-cost approximation is calculated by using…

Q: What is the concept behind the EOQ model?

A: Economic Order Quantity (EOQ) Model: It is a method of inventory costing that aims to identify the…

Q: If you wanted to evaluate a firm’s DSO, with what could you compare it?

A: DSO is the number of days that firms take to convert their account receivables into cash.

Q: What is historical beta?

A: Step 1: Introduction Beta is a measure of systematic risk or it measures the volatility of a stock…

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: 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: What exactly are the advantages and disadvantages of turnkey systems?

A: Here are the advantages and disadvantages of turnkey systems:

Q: What is the iceberg effect? How can CASE tools help to minimize this phenomenon?

A: The Iceberg Principle or Iceberg Theory is a hypothesis that proposes that we can't see or recognize…

Q: What are the advantages and disadvantages of XERO?

A: XERO is cloud-based software of accounting that suite for small businesses, medium businesses, and…

Q: Unlevered Beta is ? How it can be calculated?

A: Unlevered Beta: Unlevered beta is the beta of the firm without the impact of leverage or debt…

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 are the benefits and drawbacks of FIFO?

A: Introduction: First-in-First-Out:  In First-in-First-Out method, the costs of the initially…

Q: How is VaR used to limit risk?

A: Value at Risk (VaR) a statistical tool which measures and quantifies financial risk a firm or…

Q: What risk does Beta measure?

A: There are two types of risks: 1) Systematic risk 2) Unsystematic risk 1. Systematic risk : It is…

Q: What are the advantage  of the scattergraph method over the high-low method? The high-low method…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: What is unlevered beta?

A: Unlevered Beta also known as asset beta is used to measure the market risk of the corporation…

Q: what does the sensitivity analysis look like?

A: Sensitivity analysis:Sensitivity analysis is a process of evaluating how various values of an…

Q: Which of the following is not an example of external variable?

A: Option a

Q: Why is Scenario Analysis useful?

A: Scenario Analysis is a process where various (more than one) input changes are made at the same time…

Q: What is the difference between smart beta ETFS and index ETFS?

A: Smart beta exchange traded funds (ETFS) is a systematic approach which gives the advantage of active…

Q: What is Jensen’s alpha?

A: Jensens alpha is the abnormal or unexpected return of an investment over the theoretical  expected…

Q: What is CAPM? What is ‘Alpha’ and ‘Beta’ in CAPM?

A: CAPM - CAPM model means the Capital asset pricing model. It describes the relational ship between…

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.