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

Q: Define standard deviation

A: It refers to the variation in the actual observations from the average. Z-Score helps to know how…

Q: Define the term Current ratio with example.

A: Ratio analysis: It is the financial analysis tool for measuring the profitability, liquidity,…

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: State the relationship between the following:a. ARO and sample sizeb. Population size and sample…

A:

Q: Use the following sample data to calculate the following summary statistics X Y 5 20 7 50 4…

A: S.NO X Y 1 5 20 2 7 50 3 4 10 4 5 20 5 5 30 6 5 20 7 3 10 8 8 50 9 2 10 10 2 5…

Q: concepts underlying variance analysis

A: Variance analysis is a part of standard costing under cost accounting.

Q: I need the Standard Deviation formula and how to solve it, please

A: Formula for population standard deviation for N data points in a population  is given by:

Q: When using monetary unit sampling, reliability factors are used in calculating:   Basic precision…

A: The objective of the question is to understand the role of reliability factors in monetary unit…

Q: The likelihood that an identified precision interval contains the true (but unknown) population…

A:

Q: Thestandard error of the mean is equal to:a.the sample variance divided by the sample size.b.the…

A: Standard error of the mean (SEM) is a measure of the difference between the mean of the sample and…

Q: Calculate the following and determine if variances are favorable

A: Compute the total standard material cost.

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: Give the general formulas for determining cost and efficiency variances.

A: Cost variance: Cost variance shows the difference of standard cost and actual costs. Efficiency…

Q: data set? 4,5,9,3,10,11 show all work.

A:

Q: What is the sample variance and standard deviation for x =23,17, 15, 30, 25.

A: Sample Variance = ΣX2 - n(Avg X)2/(n - 1) Standard Deviation =√sample Variance

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: timation is a classical variables sampling technique that projects the sample average to the total…

A: Auditing - The analysis of the entity's economic situation is done in a methodical manner. An…

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: Explain the reasoning underlying the name of the weighted-average method.

A: The reason in underlying the name of the weighted average method is explained as below,

Q: Define variance

A: Variance in statistics is the calculation of the distribution in an information source between the…

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: 1. What percent of the area under the standard normal curve is within one standard deviation of…

A: The objective of the question is to find out the percentage of the area under the standard normal…

Q: Variance percentage is calculated by dividing the choose your answer... by the choose your answer...

A: Variation refers to the difference i.e. the difference between the current amounts with the budgeted…

Q: Distinguish between a favorable variance and an unfavorable variance.

A: Favorable Variance: Favorable variance is the variation in the actual and planned output which is…

Q: If Durbin Watson test statistic = 2.11. What do you conclude?

A: Durbin Watson statistic- It is a test for autocorrelation in the residuals from statistical…

Q: A measure, such as the mean, based on sample data is called a Select one: O a. O b. Statistic…

A: Answer is b.statistic A measure , such as the mean, based on sample data is called a sample…

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: Write down two possible causes for each variance.

A: Variance refers to the differs between the budgeted and actual. It may be favourable and…

Q: What is the relationship between sample size and (a) sampling risk, (b) tolerable rate of…

A:

Q: In general, variance analysis is said to provide information about _________ and __________…

A:

Q: Differentiate between variance analysis and sensitivity analysis

A: Managers of small businesses can benefit from both variance and sensitivity analyses when trying to…

Q: The standard deviation of.alt=”f$ar{X},f$ “> is usually called the A.standard error of the sample…

A: B.randomized standard error

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: 1 15% 21%

A: Give :XY15212636713-13-261115To calculate the arithmetic average returns for X and Y:For X:Average…

Q: sider the following two sets of data: A = [0.5, -0.6, 0.1, 10] & B = [6, 4, 4.5, 5.5]. Which data…

A: Variance is a measure of risk in finance terms. Variance measures degree of spread for a given data.

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.