Select one: O a. specifically what will most likely happen O b. what definitely won't happen O c only that we will be wrong Od. how wrong we are likely to be e. how wrong we will be

Q: Outline the weaknesses of sensitivity analysis

A: Sensitivity analysis uses in capital budgeting for measuring the risk in project. It helps in…

Q: What determines the acceptable level of Detection Risk?

A: Detection Risk:   It is a chance that an auditor will fail to identify any material misstatement…

Q: Explain breakeven analysis.

A:

Q: Why are some analyses called horizontal and others calledvertical?

A: In order to identify the reason behind that some analyses are called horizontal and others are…

Q: WHAT DOES BREAK-EVEN ANALYSIS EXPLAIN?

A: Break Even - Break even is the level of sales wherein the total cost = Total revenue, in simple…

Q: Define dark pool

A: Answer: Dark pools are the type of trading network on which vast blocks of shares are exchanged…

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: Explain the assumptions of break-even analysis.

A: Break-even analysis - - Break-even analysis states that a number of units must be sold to cover the…

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: How do you calulate breakeven point ?

A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

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 happens when Control Risk is below the maximum level?

A:

Q: Explain the difference between a linear risk and a nonlinear risk.

A: Linear risk is an enterprise's risk, based on the traditional economic system of "take-up-dispose."…

Q: which of the following is not a qualitative characteristic associated with Relevance? a.…

A: Financial statements should be true and fair, for presenting true and fair financial information;…

Q: Statistical sampling cannot be used to test all control activities. TRUE OR FALSE? WHY?

A: Solution : Concept Statistical sampling               In an audit two methods of sampling can be…

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: What type of risk is measured by the standard deviation?

A: Standard deviation is the measure of risk that the actual return of an investment will deviate from…

Q: Why do we enter PV and FV as a negative when calculating TVM problems?

A: The term time value of money (TVM) states that the money losses its value over time. It means that a…

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: When is a GAAP departure appropriate?

A: Definition:   Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to…

Q: What should occur when a low level of Detection Risk is acceptable?

A: Detection risk is the risk that procedures performed to reduce audit risk will not detect a material…

Q: Distinguish between the terms sampling risk and nonsampling risk.

A: Introduction: The risk of sampling is that the conclusion based on a sample may differ from the…

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: 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: The range is an ideal measure of variation since it is not sensitive to extreme values in the data.…

A: False as the range is highly influenced by outliers, making it a less reliable measure of variation.…

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

A: Each asset or portfolio has a separate level of return and associated risk in response to the…

Q: Probability samples versus nonprobability samples; also briefly define the types of valid…

A: Solution- Probability sampling- 1- probability sampling, respondents are randomly selected to take…

Q: Explain Measures of Variance and Risk?

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

Q: How does it compare with the NPV based on the WACC​ method?  ​(Select the best choice​ below.)…

A: WACC can be used as a discount rate to calculate the net present value of future cash flows from a…

Q: What would the effect of the failure in the ratio measurement?

A: Ratio measurement in terms of financial world depicts that a single accounting figure by itself may…