What is the difference between arithmetic and geometric mean returns?

Q: what are the three probability ratios equations?

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: What is one interpretation of a high P/E ratio?

A: Price to earnings ratio (P/E ratio) states the relationship of the earnings with price of that…

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: What is the expected return? What is the variance? What is the standard deviation?

A: State Probability Returns       Boom 0.25 0.15 Normal 0.50 0.08 Slow down 0.15 0.04…

Q: What is Ratio Analysis? Briefly explain

A: Ratio Analysis: It is the procedure of analyzing and looking at money related data by determining…

Q: What is the difference between a historical beta,an adjusted beta, and a fundamental beta?

A: Introduction: Beta is nothing but a metric used to assess a portfolio’s uncertainty or risk, with a…

Q: In linear regression, compare independent and dependent variables.

A: Linear regression refers to a time series model in statistics that is used for predictive analysis.…

Q: What is the difference between covariance and correlation?

A: Co-variance: A co-variance is nothing but a descriptive measure of linear interaction intensity…

Q: What is the difference between between beta and standard deviatio

A: In the world of finance in general and investing in particular we often use the concepts of beta as…

Q: How do we calculate the current ratio?

A: Current ratio: Current ratio categorized under liquidity ratio which is helps to know the liquidity…

Q: I can use the regression beta as my estimate of beta in a valuation. True or false

A: Beta refers to the measurement of the volatility of stock related to the market as a whole. When…

Q: Calculate the Mean value

A: PERT technique refers to the techniques which are used to simplify the scheduling and planning of…

Q: What is the Internal-Rate-of-Return Criterion?

A: Internal rate of return (IRR): The internal rate of return (IRR) is a measure utilized in capital…

Q: b) Calculate the variance and standard deviation.

A: Calculation of expected return Probability Return Expected return A B C=A*B 30% -13% -3.90%…

Q: Define average return

A: The formula to compute average return as follows:

Q: What is the gradient-series present-worth factor with formula?

A: Step 1: When there is a uniformly change in rate of interest is a gradient series of cash flow. It…

Q: Illustrate the calculation of the standard deviation of returns?

A: Standard deviation refers to a measure of variation or dispersion of a set of values. We can…

Q: What does a high current ratio indicate?

A: Current ratio: The financial ratio which evaluates the ability of a company to pay off the debt…

Q: What is an activity variance and what does it mean?

A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…

Q: Can someone give an example of Mean-Variance analysis?

A: Example for mean-variance analysis:

Q: What is the difference between positive and negative predictive value?

A: Positive predictive value is the probability that subjects with a positive screening test truly have…

Q: Can someone give an example or scenario of mean-variance analysis?

A: Introduction: Mean-variance analysis is a method used by investors to make investment decisions on…

Q: What is the relationship between the B/C ratio and the PW criterion?

A: The question is based on the concept of benefit to cost ratio analysis and present worth criteria…

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: Compute for the returns, average of returns and Standard Deviation

A: Standard deviation is the variation in return from the mean value. Standard deviation =…

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…

Q: What was the correlation between both return series?

A: Answer: Introduction: A linear correlation measure between two variables that is, An independent of…

Q: What does the current ratio measure?

A: Ratios are the group of metrics which are used to measure the profitability as well as efficiency of…

Q: WHAT IS THE TOTAL CURRENT RATIO?

A: Current ratio is a ratio used for measuring the liquidity of the business that how much current or…

Q: Compute for the Standard Deviation:

A: Standard deviation is the variation in returns from the mean value. Standard deviation SD =…

Q: Is there a difference between arithmetic and geometric average returns? Is it true that they…

A: Geometric average is generally used by investment professionals to measure the performance of…

Q: Explain arithmetic mean returns?

A: Arithmetic mean:It is a commonly used measure of  mean (or measure of average). Arithmetic mean is…

Q: Write an alternative way to derive the geometric-gradient-series present-worth?

A: Geometric-gradient-series present worth is derived with the help of the following formula: g is…

Q: Describe the two basic differences between the weighted average and the FIFO method.

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: What is meant by the current ratio?

A: The current ratio is liquidity which measures the ability of the enterprise to pay its short-term…

Q: What is the difference between the current ratio and the quick ratio?

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: the formula for the correlation statistic is?

A: Correlation: Correlation is a statistical method that can display whether and just how strongly…

Q: How do I find out standard deviation, mean and X for z score?

A: A z-score (also called a standard score) gives you an idea of how far from the mean a data point is.…

Q: Explain how you find the portion of the mean-variance-frontier that is the efficient frontier and…

A: There are two parts of portfolio one is return and another is risk.

Q: Compute for the returns, average of returns and Standard Deviation:

A: Returns Xi is the holding period return for stock prices. Xi= P1/P0 -1 Mean Xbar = ∑Xi/n Standard…