n case of conflict in ranking, method provides better results than method O IRR, NPV O NPV, IRR O PI, IRR O ARR, NPV

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: ROE can be disaggregated into operating and nonoperating returns. Nonoperating return will be…

A: ROE stands for "Return on Equity" it's a financial metric that measures the profitability of a…

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 statements related to cost estimation methods is false? The least-squares…

A: Following is the answer to the given question

Q: If two returns are positively related to each other, they will have a ________, and if they are…

A: Covariance: calculates the directional relationship between two variables.

Q: Any cost that is avoidable is relevant for decision purposes. O A. True O B. False

A: Relevant costs are those costs that are affected by the specific management decision being…

Q: High-low and regression cost estimation methods are alike in that they both: Select one: O a. Have a…

A:

Q: If the real cost of hedging is ______, then the hedging strategy was beneficial.   Group of answer…

A: Real Cost of Hedging: The real cost of hedging payables is the sum of the cost of hedging payables…

Q: Which of the following is true?     PMT will either match PV or FV but NOT BOTH     PMT, PV, and…

A: PMT = PMT(Payment) is a fixed payment amount made at regular intervals as part of a financial…

Q: Under what conditions are the results from using the direct method of allocation the same as those…

A: Allocation of Cost = Cost allocation is a Cost accounting Process in which organisation identify the…

Q: Consider the generalised linear regression model: y = Xẞ + e, with E[e] = 0 and E[ee] = 022. Let the…

A: The objective of the question is to identify the incorrect statements about the OLS and GLS…

Q: 3. Find the margin of error for the given values of​ c, s, and n.   c=0.99​, s=5​, n=22 The margin…

A: Margin of error shows the quantum of random sampling error which is calculated by statistics in the…

Q: Which of the following statements are true? A. The lower the M-squared the better. B. The higher…

A: higher the sharpe ratio , the better the portfolio is. higher the treynor ratio, the better the…

Q: Which of the following is not an approach to compute equivalent units? Multiple Choice All of these…

A: Equivalent Units :— Number of incomplete units are assumed to be equivalent to completed units when…

Q: Explain why the order makes a difference in one or more of the three allocation methods - Direct,…

A: The order makes a difference in all three allocation methods. In the Direct method, the order of…

Q: When we use Excel to perform a regression analysis, the independent variable data must be contiguous…

A: The question states how data should be placed while conducting a regression analysis in excel. We…

Q: If two returns are positively related to each other, they will have a ________, and if they are…

A: In the given question we are given 4 options regarding a statement and we need to choose correct…

Q: Rit = a₁ + B₁RMt + et, t = 1,..., T,i = 1, ..., N RMt~ lid N (0,0%) Eit~ iid N(0,02) cov (€is, Ejt)…

A: In this question we will be explaining the Single Index Model Regression with the given equation. We…

Q: 6. S1. The high-low method is generally less accurate than the least-squares regression method for…

A: The given question is regarding the high low method vs least squares regression method. 1) High low…

Q: Obtaining regression estimates for cost estimation requires establishing the existence of a logical…

A: The objective of the question is to identify the term that is not used to refer to the activities in…

Q: Experimental outcomes that are based on measurement scales such as time, weight, and distance can be…

A: The correct answer is: (C) Continuous  Continuous random variables are variables that can take on…

Q: Consider the generalised linear regression model: y = Xẞ + e, with E[e] = 0 and E[ee] = 022. Let the…

A: The question is asking us to evaluate the properties of the Ordinary Least Squares (OLS) and…

Q: a. Sharpe ratio b. Treynor ratio c. Information ratio d. Jensen’s alpha Discuss how to selecet…

A: Since you have posted a question with multiple sub-parts, we will explain the first three sub-parts…

Q: Define Covariance?

A: Portfolio management is a dynamic decision making process about investment. It is a continuous…

Q: (iv) For testing hypotheses: Ho: Bi = 0 H₁: B 0, for i = 1, 2, 3, 4. find t-statistics. Then on…

A: STEPS:  1. Formulate Hypotheses:Set the null hypothesis stating that each regression coefficient is…

Q: Does the IRR analysis yield the results consistent with PW and other equivalence methods?

A: Yes, the IRR analysis gives the results consistent with PW analysis and Equivalence methods.

Q: O An F test O Extrapolation is used to test the hypothesis that the values of the regression…

A: The f-test basically compares your model to one with zero predictor variables (the intercept alone…

Q: From the information shown for possible location of campgrounds and lodging at a national park,…

A: It is a case of comparing different alternatives, based on their benefit-cost ratios. So incremental…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.