What is an anomaly to an asset pricing model? For example explain what is pricing anomaly to CAPM associated with Book-to-market values.

Q: For technical analysis, based on patterns of historical prices, to have value, ______ form of market…

A: Weak form efficiency market hypothesis is an element of efficient market hypothesis which states…

Q: Why does Sales discounts are variable consideration?

A: Variable considerations: Variable consideration refers to the amount that the corporation is…

Q: What are the major differences in translating liabilities between the What are the…

A: liabilities  The financial responsibilities of a business, such as money owed to suppliers, wages…

Q: Examples of a market order, limit order and a stop loss?

A: To buy or sell Common stock or shares of a firm, you can place different types of buy/sell orders…

Q: Should the weights used to calculate the WACC be based on bookvalues, market values, or something…

A: The WACC might considers the weight of each element of a corporation's capital structure. The…

Q: What is the difference between the ratios that use the market price and the other ratios? Why might…

A: Ratio analysis mistreatment money statements includes accounting, securities market, and management…

Q: Compare the book value with the market price?

A: Book value is the amount of acquisition cost of asset, less accumulated depreciation as on a…

Q: What's the difference between the capital asset pricing model and modified capital assset pricing…

A: Capital Asset Pricing Model CAPM describes the relationship between systematic risk and expected…

Q: What is Ration Analysis in Financial Analysis?

A: Financial analysis is done for financial statements such as balance sheet for the period ended,…

Q: w does expected shortfal

A: Introduction : Value at risk (VaR) can be understood as the metric that measures the magnitude of…

Q: a. The market value of the comps should be available.   b. The valuation object should be compared…

A: Share valuation is the process of determining the value of the shares based on certain factors.…

Q: AAP should require fair value measurement of either more o

A: A fair value measurement is used to determine the worth of a certain asset or liability. As a…

Q: Which balance sheet might be most useful to an investor? a. U.S. GAAP balance sheet b. IFRS GAAP…

A: IFRS is principal based.

Q: r to pay un

A: Horizontal analysis :  Financial analysts use horizontal analysis, also known as trend analysis or…

Q: Explain how the lower of cost and net realizable value rule is applied to purchase commitments.

A: Purchase Commitments: It refers to the commitments or contract made by a company with its suppliers…

Q: How would you explain Valuation Principles and Law of One Price in simple language to someone…

A: Valuation principles and the law of one price are fundamental concepts in economics and finance that…

Q: receivables turnover ratio

A: Receivable turnover ratio is an important accounting metric used to evaluate the performance of…

Q: Arbitrage Pricing Theory a. Explain the Concepts "Law of one Price" and "Opportunity Cost"

A: Law of One Price: The One Price Rule is an economic principle that proposes that equal products…

Q: What are the differences among a stop-loss order, a limit sell order, and a market order?

A: A stop-loss order: A stop-loss order is a tool used by traders and investors to limit losses and…

Q: Which IO or PO strips tend to be more volatile in the price? Why?

A: Interest-only (IO) could be a frame of bond that's designed from day by day coupon intrigued rate…

Q: What does it mean entering a market with minimal investment?

A: Entering a market with minimal investment means entering a new market or industry with a small…

Q: How to incease profitability if PE Ratio, EPS Ratio, and ROE cannot be calculated because of its…

A: Accounting refers to the process of recording, summarizing, interpretation and communicating the…

Q: What is the current market view on GBP/USD? (Will it appreciate and which depreciate? and why?)

A: The exchange rate are dependent on the the market factors and other factors which are point of…

Q: How is book value per share calculated? Explain why book valuesoften deviate from market values.

A: Book value per share is overall value of company’s assets on its balance sheet. It means the value…

Q: Discuss when and how to use the WACC as a discount rate for valuation.

A: WACC- It is the combined cost of capital of the company. A company generally does not finance…

Q: What is the capital asset pricing model (CAPM)? What are the assumptions that underlie the model?

A: Capital Asset Pricing Model is the most common security pricing model used in Finance. It is…

Q: What are some of the problems is using AFN equation to estimate AFN rather than the pro-forma…

A: AFN (Additional funds needed)=Projected increase in assets-spontaneous increase in liabilities-any…

Q: Critically evaluate the pros and cons of the following statement: Financial statements are useless…

A: The pros and cons of the given statement are discussed hereunder : Historical cost refers to the…

Q: Explain in detail the difference between accounting value and market value.

A: The objective of this question is to understand the difference between accounting value and market…

Q: Purchasing Power Parity (PPP) theory fails to explain the facts. explain whether true or false

A: Buying power parity is a method of comparing the absolute purchasing power of currencies and, to…

Q: how was capital asset pricing model (CAPM) created? GIVE reference

A: Meaning CAPM Capital asset pricing model, It is created to explain the investor that he/she will get…

Q: Define Arbitrage Pricing Theory (APT)

A: Arbitrage is the method of making profit from the temporary change in the cost of shares by buying…

Q: What is the limitation of Financial Statement Analysis

A: Financial statement analysis is the process of analyzing and evaluating the corporate entity's…

Q: How can I explain the rationale behind the Arbitrage Pricing Theory (APT) model, and discuss its…

A: The Arbitrage Pricing Theory (APT) model is the asset pricing model that considering the difference…

Q: explain the unique characteristics of the asset class, their associated risks and potential returns.…

A: The investments can be made using different assets basing on the risk capability and investment…

Q: Why short selling are risky than buying margin?

A: Short selling is riskier than buying on margin.   Short selling is borrowing shares from your broker…

Q: What is the difference between cap rate and discount rate? Explain in detail and no plagiarism .

A: In the valuation of the real estate there are two types of the interest rate one is discount rate…

Q: Why is the application of fair value principle in measuring the financial position less objective…

A: the application of fair value principle in measuring the financial position is less objective than…