What is the difference between I and G spread measures?

Q: Describe how the FIFO method is different from the weighted-average method.

A: FIFO and weighted average method are the accounting tool for the inventory valuation. Under FIFO,…

Q: What are the differences between MIRR method and IRR method?

A: The question is related to MIRR and IRR.

Q: Define Sharpe’s reward to variability ratio

A: Answer: Nobel Laureate William Sharpe developed a risk-adjusted efficiency indicator for mutual…

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 the different variables in sensitivity analysis?

A: Answer: Under a given set of expectations, a sensitivity analysis describes the way different values…

Q: “High correlation between two variables means that one is the cause and the other is the effect.” Do…

A: Correlation:Correlation is a way to ascertain the basic equation or bond between two given…

Q: What is the balanced scorecard?

A: Balanced scorecard is basically a way of managing things even with the non financial aspects of a…

Q: Why is the NPV preferred over the IRR?

A: Net Present Value is a method of finding the profitability of a project by discounting future cash…

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: What are the differences among intensive, exclusive, andselective levels of distribution intensity?

A: Distribution intensity refers to the kind of distribution approach that a company adopts in order to…

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: what formula did you use to calculate PVIFA?

A: The acronym PVIFA stands for the present value interest factor. The present value interest factor is…

Q: What are ESOPs? What are some of their advantages anddisadvantages?

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

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: What is the difference between an IRR preference and an IRR lookback?

A: The IRR is the profit gained through an investment compounded annually. It takes account of the…

Q: Define the Sortino ratio and explain its advantage

A: Ratio analysis is referred to as the quantitative method for gaining an insight with relate to the…

Q: What is the principle behind the Sharpe measure?

A: Shape Ratio: It is known as the Sharpe ratio, this indicator measures how well a financial portfolio…

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: What is the tainting percentage? How is it calculated?

A:

Q: What are the origins of the Sharpe measure?

A: Shape Measure: In a dataset, measures of shape explain the distribution (or pattern) of the data in…

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 multiple discriminant analysis?

A: Multiple discriminant analysis (MDA) is a statistical method used by many financial planners to…

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: differences between Weighted Average and FIFO methods

A: Weighted Average and FIFO methods are used to value inventory of business.

Q: What are the differences and similarities between the Sharpe and Treynor measures?

A: Each asset or portfolio has a separate level of return and associated risk in response to the…

Q: What is ratio analysis?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: What does the current ratio measure?

A: Ratios are the group of metrics which are used to measure the profitability as well as efficiency of…

Q: What does the quick ratio measure?

A: Ratio Analysis is a financial tool used to derive conclusions about the company’s health and overall…

Q: What is the geometric-gradient-series present-worth factor?

A: Present worth: It is the present value of future cash flows. The gradient is a change occurring in…

Q: how to calculate FV?

A: Meaning of future value (FV):Future value refers to value of an asset or the value of a sum of money…

Q: Describe the two basic differences between the weighted average and the FIFO method.

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: Explain Variation on the Preferred IRR and IRR Lookback?

A: The internal rate of return (IRR) is the measure used in the financial analysis of an investment…

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: The FIFO method provides a major advantage over the weighted-average method in that______?

A: The FIFO method provides measurements of work done during the current period .

Q: Define Pretax margin

A: The pretax margin is a ratio to evaluate the operational efficiency of a firm. It measures the…

Q: What is the difference between FMS - CMS?

A: The differences between dedicated flexible manufacturing system and random-order flexible…

Q: Distinguish between Current ratio and Quick ratio?

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: How do I find out standard deviation, mean and X for z score?

A: A z-score (also called a standard score) gives you an idea of how far from the mean a data point is.…