What was the correlation between both return series?

Q: How are the ratios useful?

A: Answer: Ratio analysis is allowing a comparison two firm’s annual financial statement using certain…

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: 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: Create a sample problem of an External Rate of Return.

A: External rate of return(ERR) It is the the rate of return  on a venture where any "excess” cash  is…

Q: What is the difference between vertical analysis and horizontal analysis?

A: Explain the difference between the horizontal and vertical analysis. Horizontal Analysis: it…

Q: Define coefficient of variation (CV)

A: Coefficient of variation: The coefficient of variation is considered as a statistical measure that…

Q: calculate the standard deviation of returns.

A: Standard Deviation is the square root of the variance, which is the measurement of risk. And risk…

Q: What is indifference curve?

A: Indifference curve: It is a diagram indicating a mix of two items that give equivalent fulfillment…

Q: What is Attribute Sampling?

A: Auditing:   Auditing refers to the procedure for providing independent report over the presentation…

Q: In linear regression, compare independent and dependent variables.

A: Linear regression refers to a time series model in statistics that is used for predictive analysis.…

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: Summarize the concept behind monetary-unit sampling (MUS). How does MUS use attribute-sampling…

A: As per ISA 530, "Audit Sampling" can be defined as application of audit procedure to less than 100%…

Q: What is the difference between between beta and standard deviatio

A: In the world of finance in general and investing in particular we often use the concepts of beta as…

Q: Under what conditions will the weighted average and FIFO methods give essentially the same results?

A: Under the FIFO (First in first out) method of inventory valuation, goods which are purchased first…

Q: What is the Geometric-Gradient Series?

A: Geometric Gradient series is a series of funds that occur at every interval at decreasing or…

Q: The ________ is used to compare thevariability of two or more data sets with different scales.…

A: Coefficient of variation: The coefficient of variation is considered as a statistical measure that…

Q: When using the high-low method, should you base the high and low observations on the dependent…

A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in…

Q: What types of variables are commonly used in a CRA Z-score model? Define the ratios and explain how…

A: CRA-Z model helps in finding the organisation's default and it eases to measure the control of the…

Q: Define average return

A: The formula to compute average return as follows:

Q: How does Probability Proportionate to Size (PPS) sampling compare to Classic Variables sampling?

A: Probability Proportionate to Size ( PPS):  This is a form of variable sampling. It does not use…

Q: What is an activity variance and what does it mean?

A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…

Q: What is the difference between arithmetic and geometric mean returns?

A: The difference between arithmetic mean return and geometric mean return is mainly in two aspects…

Q: What is Altman's Z-score and what does it tell you?

A: The Altman Z Score is utilized to forecast the probability that a business will go bankrupt inside…

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: Can someone give an example of Mean-Variance analysis?

A: Example for mean-variance analysis:

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: The regression line in a scatterplot is also known as a(n): O A. R-squared line. O B. high-low line.…

A: A regression line seems to be a line that is used to define how a set of data behaves. In other…

Q: Can someone give an example or scenario of mean-variance analysis?

A: Introduction: Mean-variance analysis is a method used by investors to make investment decisions on…

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 is disbursal rate

A: Disbursal rate is an important concept in the realm of financial markets and in the realm of fintech…

Q: Probability samples versus nonprobability samples; also briefly define the types of valid…

A: Solution- Probability sampling- 1- probability sampling, respondents are randomly selected to take…

Q: Construct a sample problem of External Rate of Return (ERR).

A: External rate of return (ERR) or Internal rate of return (IRR) is the rate at which Present Value of…

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: How is the Quick Ratio calculated?

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

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: Is there a difference between arithmetic and geometric average returns? Is it true that they…

A: Geometric average is generally used by investment professionals to measure the performance of…

Q: how was the rate found?

A: Details about property are as follows: Name of Item Date of purchase Relates to which Quarter…

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: 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: Distinguish between Current ratio and Quick ratio?

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

Q: Compute for the returns, average of returns and Standard Deviation:

A: Returns Xi is the holding period return for stock prices. Xi= P1/P0 -1 Mean Xbar = ∑Xi/n Standard…