What is the expected spot rate?

Q: Define the term cutoff values?

A: Cut-off values for diagnosis or screening examinations that have constant outcomes (estimated on a…

Q: Define vector error correction model for the two interest rates?

A: Vector correlation model is used to determine the direction of causality between two variables if…

Q: The difference between the forward rate and the expected future spot rate is called:

A: The forward rate is a price at which the transaction or settlement will take place in the future. It…

Q: What is the expected return on a two asset portfolio and what are its variance and standard…

A: Two Asset portfolio: The portfolio that has 2 assets is called as two asset portfolio.

Q: What is forecast horizon?

A: Forecasting refers to the process where estimation about the future events is determined in advance…

Q: What is the incremental analysis?

A:

Q: What is horizon value?

A: Horizon value is the value of the project or the security at the end of a specified future date. The…

Q: What is the Tolerable Rate?

A:

Q: What is the Aggregating Risk over Time?

A: Aggregating Risk over time is the measure of a solitary customer's presentation of a foundation or…

Q: s. What is the geometric average return for this time period?

A: Geometric Average: It is the average return for a set of values computed with the products of the…

Q: What is the difference between a historical beta,an adjusted beta, and a fundamental beta?

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

Q: Define spot markets

A: A place where numerous sellers, as well as buyers, come together for exchanging services and…

Q: What is the horizon value? Why is it also called the terminal valueor continuing value?

A: Horizon value is the value of the expected dividend that will be received after the horizon date.

Q: Explain HPRs and Inflation?

A: Answer: Holding period returns (HPRs): Holding period return (HPR) is one of the investment…

Q: How do you calculate a weighted beta?

A: In portfolio there are number of stock present in portfolio. We have to calculate weight of each…

Q: ffective rate?

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: What is periodic rate?

A: A periodic rate is a rate that can be paid on a credit or acknowledged over a fixed timeframe on…

Q: What is the trend analysis?

A: Trend analysis is a procedure utilized in the technical investigation that expects to figure future…

Q: How do we calculate the current ratio?

A: Current ratio: Current ratio categorized under liquidity ratio which is helps to know the liquidity…

Q: Can someone give an example of global minimum-variance portfolio?

A: The question is based on the concept of global minimum-variance portfolio, the idea of  a minimum…

Q: What is the Internal-Rate-of-Return Criterion?

A: Internal rate of return (IRR): The internal rate of return (IRR) is a measure utilized in capital…

Q: Define average return

A: The formula to compute average return as follows:

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

A: Step 1: When there is a uniformly change in rate of interest is a gradient series of cash flow. It…

Q: Illustrate the calculation of the standard deviation of returns?

A: Standard deviation refers to a measure of variation or dispersion of a set of values. We can…

Q: What does a high current ratio indicate?

A: Current ratio: The financial ratio which evaluates the ability of a company to pay off the debt…

Q: Explain prime rate

A: Introduction: Usually an interest rate is the amount that a lender pays calculated as a percentage…

Q: Define Expected rate of return

A: Introduction: Usually return is a kind of profit that comes from your investment. Example, an amount…

Q: What is risk return ratio?

A: Any susceptibility a corporation or organization has to factors that might affect profitability or…

Q: standard deviation of returns?

A: Risk is the value of volatility around the mean. It is measured via variance or square root 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: Expected return

A: Expected Return is the amount of loss or profit an investor expects to receive on an investment. It…

Q: How is the standard deviation of returns calculated?

A: Standard deviation is ascertained as follows: The mean worth is dictated by including all the…

Q: Consider the Security Market Line (SML). What determines its vertical intercept? What determines its…

A:

Q: When will the prime rate go up and what factors drive it?

A: The prime rate is the best interest rate you can get, and it's influenced by the economy.   In order…

Q: What is the general goal of trend analysis?

A: Trend analysis:   Trend analysis is prepared to make comparison between the previous year's…

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 is hurdle rate?

A: Hurdle rate a rate usually used in capital budgeting decisions to calculate the acceptability of a…

Q: What is the standard deviation of their portfolio?

A: Standard deviation in simple words mean volatility. So the standard deviation of portfolio means the…

Q: Write an alternative way to derive the geometric-gradient-series present-worth?

A: Geometric-gradient-series present worth is derived with the help of the following formula: g is…

Q: what is the risk-free rate (rf)?

A: Risk free rate is also called as treasury bill rate. This treasury bill rates are free from default…

Q: What is trend analysis, and how does it differ from horizontal analysis?

A: Financial statement analysis: The process of analyzing the financial statements of a company to…

Q: What are the principles of finacial forecasting?

A: Financial forecasting as the word implies is the prediction or estimation of how the business…

Q: What is the Variance of returns for Security XYZ?

A: Outcome Probability Return A 20% 20% B 80% 25%   Expected return = (Probability of…

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…