Which of the following statement is true of a covariance matrix?  a. The diagonal values are volatilities b. The non-diagonal values are covariances c. The non-diagonal values are coefficients of variations d. none of the above

Q: Which of the following is false of the historical VaR?  a. It is based on normal distribution of…

A: Ans. Historical VaR do makes use of Monte Carlo Simulation.

Q: Which of the following statements about the relationship between the IRR and the MIRR is correct? A…

A: The IRR is the investment discount rate that corresponds to the difference between the original…

Q: What is the put-call ratio? What is it used for? What are considered high and low values and what do…

A: The question is based on the concept for indicators of the stock market performance. The Put-Call…

Q: Which of the following is NOT true regarding the normal distribution= Multiple Choice It is…

A: Introduction: The normal distribution is one of the important and valuable distributions in the…

Q: An advantage of the high-low method is that it a. is subjective. b. is objective. c. is the most…

A: The company also will prepare the contribution margin income statement to arrive at the contribution…

Q: Define beta coefficient, b

A: Answer: Beta coefficient is a coefficient which leads to the measurement of stock volatility in…

Q: In a regression analysis, the variable that is being predicted is the a. Intervening variable O b.…

A: The variable that is attempted to clarify or anticipate is known as the the response variable,…

Q: a firm uses ther roviding for the e ayout ratio will b True False

A: The right answer is true

Q: sion equation y = a + bx, the letter b is best described as a (n):

A: In the standard regression equation, b represents the variable coefficient.

Q: Which method of forecasting is most widely used? a. Regression analysis. b. Exponential smoothing.…

A: Regression analysis method of forecasting is the most widely used method of forecasting....

Q: Which of the following is incorrect? V [ Select ] P= A {[(1+i)^N - 1]/[(1)]} * [(1+i)^(-N)] P= G…

A: Time Value of Money is the concept which determines that value of dollar today is more than the…

Q: 32. An analyst calculated the excess kurtosis of information, we conclude that the distribution of…

A: When the value of excess kurtosis is negative then the distribution is called platykurtic. (Note…

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: 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: A variable which can assume any value within a given range is a. Discrete variable O b. Quantitative…

A:

Q: xplain the shape of the Markowitz (that is, mean-variance) efficient frontier, specifically what…

A: Markowitz (that is, mean-variance) efficient frontier-It is also known as mean - variance model and…

Q: n case of conflict in ranking, method provides better results than method O IRR, NPV O NPV, IRR O…

A: Capital budgeting techniques are a way to analyse and evaluate a project based on various criteria…

Q: Enter a T if the statement is true and F if it is false. Explain your choice. i) The solution u to…

A: Black scholes method is a method used to calculate the call option as well as put option price.

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: Show that the lower semi-standard deviation corrected expectation has properties (UT) und (UC)

A: Semi-deviation is an alternative to standard deviation for determining the degree of risk associated…

Q: Find the correlation of assets S and T if the standard deviation of S is 4 and standard deviation of…

A: Correlation is a statistic that helps in measuring the degree to which two variables move in…

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 is the difference between positive and negative predictive value?

A: Positive predictive value is the probability that subjects with a positive screening test truly have…

Q: What is the VIX index? What is it used for? What are considered high values for the VIX and what do…

A: Volatility: - Volatility is a measure of movement or price variation in assets on daily, weekly,…

Q: What was the correlation between both return series?

A: Answer: Introduction: A linear correlation measure between two variables that is, An independent of…

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: Which one of the following statements is correct? a. If NPV is positive, IRR will be less than…

A: In order to determine the Net present value, the initial cash outflows is required to be subtracted…

Q: when NPV is greater than zero the PI will be greater than zero, greater than one, less than one, or…

A: Net present value NPV is a technique used in capital budgeting for evaluating the project's…

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: Explain arithmetic mean returns?

A: Arithmetic mean:It is a commonly used measure of  mean (or measure of average). Arithmetic mean is…

Q: Discuss the main difference between the single-index model and the Markowitz optimization model.

A: Single Index Model- This article is concerning the quality rating model in political economy. For an…

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: When NCREIF returns and REIT returns are compared, NCREIF returns exhibit a much lower pattern of…

A: Introduction: NCREIF is nothing but an acronym for National Council of Real Estate investment…

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: The factor (F/A,i,n) is approximately equal to the factor (P/A,I,n) Select one: True False

A: a. The factor (F/A, i,n) is the compound amount factor that is used to calculate the future value of…

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: Which of the following indicates that two variables tend to move in the same direction? a.negative…

A: Negative covariance means that the returns move in opposite direction. So, Option a is incorrect.…

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: Fill in the blanks. a. In multiple linear regression analysis, the independent variables are called…

A: Fill in the blanks:   Predictor variable: Predictor variable in a regression in the independent…