“JIT purchasing has many benets but also some risks.” Do you agree? Explain briey.

Q: " The sale forecast is the cornerstone for profit planning," why?

A: Definition: Operating budget: The operating budget is that budget that is prepared to plan all…

Q: Under what circumstances is stand-alone and market risk most relevant?

A: Stand-alone risk is the risk associated with a single investment or project, and it is typically…

Q: Give a definition of a "return". Why do we need to incorporate risk into return (discount rate)?

A: Investment: An investment is when money is used now with the goal of increasing its value later. In…

Q: a. Prepare a differential analysis dated April 30 to determine whether the company should make…

A:

Q: these are simple mcq question ,please explain why you choose that particular option

A: Q1. Given:       Share A Share B Returns 16.00% 11.00% Standard Deviation 18.10% 10.70%…

Q: Explain the concept of “buy term and invest the difference (BTID).” a. Include in your explanation…

A: The buy term and invest the difference (BTID) refers to the actual amount that is needed to buy the…

Q: Explain with examples that economic incentives are not as complex as we thought.

A: Economic incentives are given to motivate a person to take a particular course of action . Economic…

Q: “CVP analysis is both simple and simplistic. If you want realistic analysis to underpin your…

A: CVP analysis refers to the cost-volume-profit analysis which describes the change in the operating…

Q: A sound risk mitigation plan improves the DCF, as it lowers the risk premium in the discount factor.

A: Discounted cashflow:Discounted Cash Flow (DCF) analysis is a valuation method that calculates the…

Q: Define the term Trade-Off between Risk and Reward?

A: Risk-Reward trade off refers to an investment principle which indicates higher the risk, higher is…

Q: Do you believe on the principle-higher risk provides higher return? Can we achieve high return with…

A: Return is the reward which an investor will get by investing money in return and risk is the chance…

Q: What is the maximum value that a call can take? Why? Explain which option (i.e. put or call)…

A: Options are of 2 types:1) Call Option2) Put Option

Q: what is the key deference between Value - at - Risk ( VaR ) and volatility ? More specifically, what…

A: Volatility is a traditional measure of risk. Because of certain disadvantages in using volatility as…

Q: Is the accept-or-reject decision rule the same as in the simple -investment case? Explain how?

A: Yes, accept or reject decision rule is the same as in the simple investment because accept or reject…

Q: There is a 0.0087 probability that a randomly selected 27-year-old male lives through the year. A…

A: Given: Probability of surviving = 0.9987 Probability of not surviving = 1-0.9987 =…

Q: EXPLAIN ALL YOU KNOW ABOUT EMT (EFFICIENT MARKETS THEORY).

A: Efficient  market theory  also known as efficient market hypothesis  is a hypothesis that states…

Q: Calgary Lumber Company incurs a cost of $380 per hundred board feet (hbf) in processing certain…

A: a)   Differential analysis Sell Rough cut (Alt 1) or Process further into finished cut…

Q: What is the purpose of NPV analysis? Be sure to discuss the concepts of risk and return in your

A: Net present value NPV is used quite extensively in capital budgeting decisions whether to accept or…

Q: Efficient Market Hypothesis

A: In financial economics, the efficient-market hypothesis (EMH) holds that asset prices accurately…

Q: If you borrow $3,600 to buy a car at 15% per year compounded monthly, to be repaid over the next…

A: Monthly Payment = P x r / [1 - {1 / (1 + r)^n}] Here, P = Present Value or Loan Amount i.e. $3600 r…

Q: Please explain the benefits of Hedging Instruments ??

A: A Hedging instrument is a financial product which helps to traders to reduce or limit the risk…

Q: How does the efficient frontier change if we add the risk free asset into the portfolio of risky…

A: The efficient frontier is a set of optimal portfolios that maximizes expected returns for a given…

Q: Did you use the same discount rate in the FCF vs DDM model? If so, why? If not, why not?

A: DDM model is dividend discount model which focus on the dividend provided to the shareholder,…

Q: What's the best ETF to buy? And why?

A: ETFs are the best popular traded option for investors looking for growth in their money with both…