“High correlation between two variables means that one is the cause and the other is the effect.” Do you agree? Explain.

Q: What have been the results of empirical tests of the dividendtheories?

A: Answer: Constructing a perfect empirical test of the relation between pay-out strategy and the…

Q: eristics?

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

Q: In a research, what is the difference between an experimental method and a correlational method?

A: Correlational research is a non-experimental research method which studies the relationship between…

Q: Explain positively correlated

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

Q: I need the Standard Deviation formula and how to solve it, please

A: Formula for population standard deviation for N data points in a population  is given by:

Q: What is the difference between covariance and correlation?

A: Co-variance: A co-variance is nothing but a descriptive measure of linear interaction intensity…

Q: Which of the following statements are true? A. The lower the M-squared the better. B. The higher…

A: higher the sharpe ratio , the better the portfolio is. higher the treynor ratio, the better the…

Q: The value of a correlation is reported to be r = 0.25. How is this interpreted?

A: Correlation: In the financial and investing sectors, correlation is a statistic that indicates the…

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: Which one of the following statements regarding the coefficient of determination is NOT correct?

A: Coefficient of correlation is the measure which is used by the management of the company so that it…

Q: The Peg Ratio appears to be a refinement that allows us to do what? Is the ratio aptly named?…

A: The price earnings ratio of the PE ratio is one of the most common measure to value the stocks of…

Q: What is the difference between I and G spread measures?

A: The yield spread of the bond reflects the difference between the YTM(Yield to Maturity) of various…

Q: Why is Quick Ratio deemed a better measure than the two other measures? Explain:

A: Quick ratio is used for measuring the short term liquidity position of the company and forms a part…

Q: Which method would be more consistent with the matching principle? Why?

A: Definition:

Q: Explain the coefficient of variation?a

A: The coefficient of variation (CV) may be a statistical measure of the scattering of information that…

Q: “Multicollinearity exists when the dependent variable and the independent variable are highly…

A: Multicollinearity:  Multicollinearity refers to a condition where two or more explanatory variables…

Q: Does the IRR analysis yield the results consistent with PW and other equivalence methods?

A: Yes, the IRR analysis gives the results consistent with PW analysis and Equivalence methods.

Q: Is a negative Sharpe ratio good or bad?  EXPLAIN

A: What sharpe ratio measure? It measure the excess return earn by portfolio over risk free rate at…

Q: coefficient of correlation is used to obtain what?

A: The correlation coefficient could be a measurable degree of the quality of the connection between…

Q: What kinds of controls are the most difficult to show in a balanced scorecard?

A: The balanced scorecard is a too for measuring the performance.

Q: Explain Key Statistical Relationships between Covariance and Correlation of Returns?

A: Covariance:It is defined as the statistical relationship between stock prices of stock that vary…

Q: Define Correlation as a concept

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

Q: Explain the relationship between the conventionaL PW criterion and the B/C ratio?

A: The relationship between the cost of the project and benefits earned from the project is measured by…

Q: What is the relationship between the B/C ratio and the PW criterion?

A: The question is based on the concept of benefit to cost ratio analysis and present worth criteria…

Q: Which of the following statement is true of a covariance matrix?  a. The diagonal values are…

A: A covariance matrix is a representation of variances and covariances between assets. Hence, a n × n…

Q: Explain the relationship between WACC and EVA! demonstrate by providing a complete analysis and…

A: Formula: EVA = Net Operating profit margin(NOPAT) -(Capital employed* WACC)

Q: Do you think that the Balanced Scorecard approach can be employed to evaluate the performance of…

A: Yes, the Balanced Scorecard approach can be employed to evaluate the performance of Bell Division.…

Q: When two variables are not perfectly related, then their correlation would be one?   a.true…

A: In order to determine the relationship between the variables correlation is used, if in changing in…

Q: What is the difference in a data and findings?

A: Data is the combination of raw facts which is used for providing information and conclusions to the…

Q: The coefficient of variation is useful in determing the relative degree of variability of different…

A: In finance, the coefficient of variation is a statistical measure that is used for determining the…

Q: In your opinion what are the three most important areas to use when benchmarking?

A: Benchmarking is the technique to compare the business's product, practices, and services of the…

Q: t is objective?...

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

Q: What are the two major types of tests that have been performed totest the validity of the CAPM?…

A: Two major types of tests performed for the validity of CAPM : 1. Black, Jensen and scholes test,…

Q: the formula for the correlation statistic is?

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

Q: The correlation of two variables will be Group of answer choices a. Between -1 and +1, inclusive b.…

A: The correlation coefficient is a statistical measure.

Q: How I can calculate the standard deviations of each of the two differentassets?

A: Standard deviation is a number which is used to tell how much the different member of a group differ…