What is enhanced indexing? How is it different to passive or active strategies? What type of information ratio would you expect for an enhanced indexing strategy? How does this change if the strategy is either passive or active? Carefully justify your answers.

Q: Which is better from the investor's perspective

A: The Answer

Q: How does the Broader Diversification Reduce Risk?

A: Portfolio is a pool of different investments/assets. Investors can categorize the risks in two…

Q: What does it mean for markets to be efficient? What are the differences in the degree of efficiency,…

A: The markets are considered to be efficient if the information related to various aspects that create…

Q: Information that has the ability to make a difference in the decision-making process is known to…

A: Lets understand the basics. For decision making, information should posses following…

Q: s the limitations of ratio analysis as a tool for str

A: Ratio analysis is used quite often in the decision making but many time that results in quite bad…

Q: The internal rate of return (IRR), despite its shortcomings, can be a useful analysis tool for…

A: IRR is the required rate of return for the project to have zero Net Present value.

Q: can you solve the apr and effective rate without excel ?

A: Solution:- When an equal amount is paid each period, it is known as annuity. We know, present value…

Q: Explain Diversification Benefits with example?

A: Following are the benefits of diversification: Reduce the risk of loss: Portfolio diversification…

Q: What type of Risks are exists in the conversion cycle?

A: Cash conversion cycle (CCC) CCC is a tool for tracking the time the company spends to get the cash…

Q: Why is Quick Ratio deemed a better measure than the two other measures? Explain:

A: Quick ratio is used for measuring the short term liquidity position of the company and forms a part…

Q: Discuss the concept of valuation. What is this concept about? Why is it important? What are some…

A: Valuation in simple words is valuing an asset or a financial security in its present value by…

Q: Thoroughly discuss the concept of Market Efficiency and evidence for and against it.

A: The market efficiency will be reflective of a concept which will help in understanding the degree of…

Q: Which option is most profitable, keeping or replacing?Insert numerical value. What is one relevant…

A: The old machine is replaced with a new machine only when the production is improved and there is a…

Q: Define operating leverage with examples and why it is potentially risky.?

A: Operating leverage is used to measure a company’s fixed costs as a percentage of its total costs. A…

Q: An NPV analysis is one part of a complete captial investment analysis. What is the second part that…

A: Introduction: An analysis of capital investment is the mechanism by which management prepares,…

Q: Explain the term Value investing strategies?

A: SOLUTION:-   Benjamin Graham, an American economist, investor, and professor, pioneered a new method…

Q: Why is the reporting of segment information required? Justify your response. Why is the reporting of…

A: Segment reporting deals with in-detail segment-wise financial reporting in the financial statements…

Q: What are the differences between bottom-up and top-down approaches to security valuation? What are…

A: A top-down method to security evaluation starts with an examination of the worldwide and national…

Risk Analysis

Risk management is the entire walkthrough process of helping the organization manage risks or avoid them altogether. It is an in-depth study to determine the risks and uncertainties faced by the business and how these impact the objectives and outcomes of the business. Risk analysis is a procedure of risk assessment followed by the management of an organization to avoid risks that may harm the functioning and efficiency of the company.