What is the Geometric-Gradient Series?

Q: What is the carryover ratio? What parameters of the base does its value depend on?

A: Carryover Ratio The purpose of measuring the carryover ratio  is to determine the ratio which are…

Q: Define the term cutoff values?

A: Cut-off values for diagnosis or screening examinations that have constant outcomes (estimated on a…

Q: What is variance analysis? Explain?

A: Variance Analysis: Variance analysis is the process of ascertaining the deviations between actual…

Q: What is directional test?

A: Audit: Audit is the process of verification of the compliance of the financial statements. It…

Q: How much is the Alpha Unit segment controllable margin?

A: Segment controllable margin means the profit earned after deducting the variable expenses and…

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: Define the following terms, using graphs or equations to illustrate youranswers wherever feasible:…

A: Characteristic lineIt a line that is helpful in summarizing specific security that helps in…

Q: What is the incremental analysis?

A:

Q: Define geometric-gradient-series?

A: When there is a change in the cash flows series whether it is positive or negative then the series…

Q: Describe in words how an NPV profile is constructed. How do you determine the intercepts for the x…

A: NPV profile means the graph which depicts the Net present value of the project at various discount…

Q: What is the difference between vertical analysis and horizontal analysis?

A: Explain the difference between the horizontal and vertical analysis. Horizontal Analysis: it…

Q: Define coefficient of variation (CV)

A: Coefficient of variation: The coefficient of variation is considered as a statistical measure that…

Q: What is indifference curve?

A: Indifference curve: It is a diagram indicating a mix of two items that give equivalent fulfillment…

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 a limit order?

A: Limit order It is such an order to buy or trade a security at or superior to a predefined cost. The…

Q: Calculate Vertical and Horizontal Ratio Analysis?

A: Ratios refer to the measurement of the relation between two sums. In accounting, ratio analysis is…

Q: Calculate the Mean value

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

Q: Under what conditions will the weighted average and FIFO methods give essentially the same results?

A: Under the FIFO (First in first out) method of inventory valuation, goods which are purchased first…

Q: What is R, the expected

A: The time value of money is a method to calculate the present value and future value of an…

Q: Explain the coefficient of variation?a

A: The coefficient of variation (CV) may be a statistical measure of the scattering of information that…

Q: What is the difference between arithmetic and geometric mean returns?

A: The difference between arithmetic mean return and geometric mean return is mainly in two aspects…

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

A: Example for mean-variance analysis:

Q: What is a quantity standard?

A: A quantity standard is the amount of materials that should be used in the production of a unit.…

Q: What is forward points?

A: Forward points are nothing but basis points added or subtracted from the spot rate of an underlying…

Q: What is a cross rate?

A: Cross rate is an exchange rate of currency between two countries, but both countries are not using…

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: How is the Quick Ratio calculated?

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

Q: What does the quick ratio measure?

A: Ratio Analysis is a financial tool used to derive conclusions about the company’s health and overall…

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

A: Present worth: It is the present value of future cash flows. The gradient is a change occurring in…

Q: Explain arithmetic mean returns?

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

Q: how to calculate FV?

A: Meaning of future value (FV):Future value refers to value of an asset or the value of a sum of money…

Q: What is hurdle rate?

A: Hurdle rate a rate usually used in capital budgeting decisions to calculate the acceptability of a…

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: Formula for quick ratio?

A: Quick ratio is an important financial ratio used to evaluate the liquidity of the company

Q: How to do vertical and horizontal analysis.

A: Horizontal Analysis: Horizontal analysis is prepared to make comparison between the financial…

Q: Discuss the concepts of duration and convexity.

A: Duration : Duration is the measure of sensitivity of a bond with respect to change in interest…

Q: what is the quick ratio,

A: The quick ratio( also know as acid test ratio) is an state that a company’s short-term liquidity…

Q: Define Pretax margin

A: The pretax margin is a ratio to evaluate the operational efficiency of a firm. It measures the…

Q: What is inverse floater?

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

Q: What is compounding frequency?

A: Compound interest - In this method, the interest is calculated on the balance at the end of each…

Q: Distinguish between Current ratio and Quick ratio?

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

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.

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.