How suboptimization can occur?

Q: Why are CMOs overcollateralized?

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

Q: Explain efficient frontier?

A: Investors look for the portfolios that would generate maximum return at an allowable level of risk.…

Q: What is the purpose of EDI?

A: Transparency in electronic data exchange: Expanding EDI enables suppliers to get access to a buyer's…

Q: Explain the call-put parity relation and how it is justified?

A: call-put parity relation 1. It shows the prices of calls and puts , consistency of underlying…

Q: Explain Oligopoly, and its features.

A: Given, Explain Oligopoly, and its features.

Q: What are the differences between a centralized and decentralized network?

A: Social Network- The term "social network" refers to internet-based networking with friends, family,…

Q: What is internalization?

A: Internalization: It happens when an individual directs an exchange itself, as opposed to sending it…

Q: Explain types of Properties?

A: Tangible Property: This type of properties alludes to a property that can for the most part be…

Q: How does the change in the PBO occur?

A: Projected Benefit Obligation:   It is a pension concept in accounting as it is the present value of…

Q: How much of FTB?

A: Answer:

Q: What benefits result from decentralization?

A:

Q: What is a nonsimple project?

A: There are two types of projects, that is, simple and non simple. These projects are based on the…

Q: What is modified breakeven analysis?

A: Break even analysis refers to the financial computation that weights the new business cost, product…

Q: Define the term NPW?

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: What does the elimination process accomplish?

A: Intercompany elimination:   Intercompany elimination refers to the process in which the transactions…

Q: What are the Replacement decisions?

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: What is the efficient frontier?

A: The term efficient frontier is used in relation to professor Harry Markowitz's Modern Portfolio…

Q: Which of the following value is concerned with the way we approach the end states?

A: Option a

Q: What is securitization?

A: Introduction: Finance reflects a broad variety of spaces where decisions can be taken relative to…

Q: What are the examples of gain contingency?

A: A gain contingency is a uncertain future event which results in economic inflow to a entity, it is…

Q: Define the term Multiple Peril?

A: Multiple-perilIt is the insurance coverage package for small and commercial businesses. It is the…

Q: What is the decision rule for NPV?

A: Capital budgeting: Capital budgeting is a process by which the management can plan and evaluate the…

Q: What is scalability?

A:

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 hedging?

A: SOLUTION:- Hedging  refers to shielding of  investments. A hedge is an investment method which aims…

Q: Describe the fundamentals of Replacement-Analysis?

A: Replacement analysis is the process where it is determined whether it would be beneficial to replace…

Q: What are the differences between GAAP and IFRS?

A: The companies are required to follow a set of guidelines and rules in the presentation of financial…

Q: What are the Replacement-Analysis Fundamentals?

A: Replacement analysis refers to the process where an organization determines whether it is beneficial…

Q: Explain partitioning the IRR?

A: IRR partition tool is an important tool in finance. This tool is a very suitable if one wants to…

Q: What properties should transfer-pricing systems have?

A:

Q: What is view integration?

A: View Integration:  Single model which is created for integrating multiple REA diagrams (which were…

Q: What is a CMO?

A: A collateralize mortgage obligation (CMO) refers to a type of mortgage-backed security that contains…

Q: What is meant by the term decentralization?

A: Decision-making process:Decision making can be defined as the process of making choices through the…

Q: Explain Replacement-Analysis Fundamentals?

A: Replacement-analysis fundamentalUnder this, the decision regarding the replacement of obsolete as…

Q: What does Unbundling entail reducing?

A: Unbundling is the process of selling, changing, or cutting assets, product lines, divisions, or…

Q: What are some types of divestitures?

A: A divestiture or divestment is the disposal of the company’s assets or a through sale, exchange,…

Q: What are representative strengths of NPO?

A: Non Profit Organisations (NPO) are expected to be driven by a need to fulfill a social purpose…

Q: what are the advantages and disadvantages of decentralization?

A: Decentralization: When the power of decision making is transferred from the higher authority to…

Q: What differential analysis and why would we use it?

A: Decision making is the process of taking the decisions based on the costs and different kind of…

Q: What is the replacement analysis?

A: Replacement analysis is one of the keys examinations in capital budgeting.

Q: How can thepayback method be useful?

A: Meaning:   The payback period is the time required to earn back the amount invested in a…

Q: Define the term Discrete Compounding?

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

Q: What are practical weaknesses of NPO?

A: Organizations are described as business units which are established by the individuals, or group of…

Q: What is put–call parity?

A: Conditions where two or more things are equal are known as parity. It refers to two securities…