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

Q: What are the characteristics of Statistical Sampling?

A: Sampling: Sampling refers to testing some part of the entire population, based on some key features…

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 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: Why is it crucial to estimate the MARR correctly?

A: It is the minimum return rate on the project which an entity computes prior to the staring of the…

Q: eristics?

A: Step 1   Risk is defined as an occurrence that harms financial performance and/or reputation as a…

Q: What are the Sharpe and Treynor rati pleces.) Sharpe ratio

A: The Sharpe and Treynor Ratios are both used to calculate the risk-adjusted return on an…

Q: In a research, what is the difference between an experimental method and a correlational method?

A: Correlational research is a non-experimental research method which studies the relationship between…

Q: In an MUS application, how is the population size defined? What is the relationship between…

A: MUS stands for Monetary Unit Sampling. It defines the sampling unit as an individual dollar in an…

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 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: 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: 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: How does Block Sampling compare to other sampling methods?

A: Block sampling is a sampling technique in auditing. Under this method, a series of items is selected…

Q: What are the two primary factors that are difficult to estimate in sensitivity analysis?

A: Answer: Sensitivity analysis is commonly used in determining the interactions in a system or even a…

Q: What is statistical sampling? How does it differ from nonstatistical sampling?

A: Statistical sampling is widely used statistical method of measurement by taking some samples from…

Q: What functions are used in conjunction with Classic Variable Sampling?

A: Classic variable sampling is a testing for a dollar amount. In this sampling, value in sample gives…

Q: What is the difference between I and G spread measures?

A: The yield spread of the bond reflects the difference between the YTM(Yield to Maturity) of various…

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: 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: How does Sampling Risk compare to Non-Sampling Risk?

A: Risk:   It is a probability of the financial statements being materially incorrect even though the…

Q: Explain the coefficient of variation?a

A: The coefficient of variation (CV) may be a statistical measure of the scattering of information that…

Q: How are Sensitivty Analysis and Scenario Analysis different in details?

A: Sensitivity analysis is the evaluation of the impact on the project when there may be a few…

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: What type of testing are ratios?

A: Ratio:   It is a number expressed in terms of another to establish a relationship among them.

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: 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 the meaning of “statistically significant” in relation to the null hypothesis?

A: Null hyptohesis is the assumption of no effect or no relationship between variables. The Null…

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: Explain Measures of Variance and Risk?

A: Variance tests normal or normal variability. Variability is volatility for investors, and volatility…

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: 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: 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: What does the acid test ratio state? Meaning what do the results mean?

A: Acid test ratio is also known as liquid ratio or quc ratio. This is calculated by dividing liquid…

Q: How I can calculate the standard deviations of each of the two differentassets?

A: Standard deviation is a number which is used to tell how much the different member of a group differ…