The value of the asset at the end of the useful life is called O a. Book value O b. Useful life O c. Salvage value O d. Cost price

Q: Explain the term sensitivity analysis

A: Sensitivity Analysis is a tool used in financial modeling to study how independent variable values…

Q: Is Evaluating Design Alternatives essential to achieve the goals?

A: Design alternative is referred as when the underlying project, product is designed in different…

Q: What is the best-case scenario?

A: When companies are uncertain about the details of a project such as costs, inflows, interest rate…

Q: What are the important guidelines for Selecting a MARR?

A: It places a base gainfulness prerequisite on the discount rate, or MARR, which a venture or…

Q: could you list the name of the recommended strategy as long call, write call, long put, or write…

A: Option strategies help to protect from any potential risk to be resulted from the movement of the…

Q: Write the six of the key input variables. of sensitivity analysis?

A: Sensitivity is a change in volume, sales, cost, so on. The 6 of the input variables of sensitivity…

Q: Describe the benefits of benchmarking.

A: Benchmarking is a way to measure something in corporate environment, it is also used to promote…

Q: Define strategic options

A: Strategic option: Strategic option is referred as those chances of investment which is capitalized…

Q: Define the term PW criterion?

A: Present worth is a systematic identicalness technique where cash flows of a task are limited at…

Q: Define the term predictive value.

A: Predictive value refers to the fact that quality financial information can be used to base…

Q: Explain the Sensitivity Analysis?

A: The sensitivity analysis is utilized to comprehend the impact of a lot of autonomous factors on some…

Q: uss how to choose the appropriate benchmark for performance e

A: Choosing appropriate benchmark is very important for evaluation of performance of the portfolio.

Q: Explain put option

A: Introduction: This question is related to the concept of financial derivatives. Derivative…

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.