Both the interest rate‚ r‚ and variance rate‚ δ2‚ of the stock are constant (or in slightly more general versions of the formula‚ both are known functions of time—any changes are perfectly predictable). 3). Stock prices are continuous‚ meaning that sudden extreme jumps such as those in the aftermath of an announcement of a takeover attempt are ruled out. In this case‚ we do not take paying dividends into consideration. And we all set risk-free rate and variance rate are constant. But actually
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John Doe Fin 4980-01 Dr. Alex 2/18/2013 Project 1: “Foundations of Portfolio Theory” by. H.M. Markowitz (1991) Foundations of Portfolio Theory by H.M. Markowitz is based on a two part lesson of microeconomics of capital markets. Part one being that taught by Markowitz‚ which is solely geared toward portfolio theory and how an optimizing investor would behave‚ whereas part two focuses on the Capital Asset Pricing Model (CAPM) which is the work done by Sharpe and Lintner. In this article Markowitz
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X-BAR = Σx/n Calculate the sum of the total return and divide by the number of observations • Variance = σ2 = Σ(x – x bar) 2 / (n-1) Fix X-BAR‚ double click to apply to all dates‚ get the sum‚ divide by (n-1) Risk = σ = √σ = SQRT(Variance) = standard deviation 4. Average Matrix Excel Options → Add-ins → Go → Select 1st two and last one → Go Data Analysis → Descriptive Analysis → Select all data without the time → Label in the first row → Select “Summary Statistics” → OK • This
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Budget Management Analysis Juan Vazquez-Nieves HCS 571 August 27‚ 2011 Tamica Lewis Abstract A budget is an instrument used to help managers ensure that the resources used effectively and proficiently toward the goals of an organization. A budget projection can be made on a yearly base depending on previous year or existing one. They can further be broken down quarterly or monthly depending on it use. Generating a budget is complex undertaking‚ and for a budget to be effective the organization
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Earned Value analysis performed by a cost account manager‚ who has received a variance report (given below) from a performance measurement system. I have calculated the appropriate variances and included corrective measures for each of them. REPORT Variances are calculated as follows: CV (cost variance) = BCWP – ACWP SV (schedule variance) = BCWP - BCWS TASK A B C D E ACWP $22‚550 $32‚000 $16‚000 $10‚000 $23‚000 BCWP $25‚000 $30‚000 $15‚000 $17‚000 $24‚000 Cost Variance $2‚450 -$2‚000
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Services 5. Telecoms and IT “(Kaye‚ 2010) Once these areas have been looked at there are seven steps that need to be completed in order to reduce the costs. The seven steps are “Step 1 - Analyze Spending Patterns Step 2 - Conduct Needs Analysis Step 3 - Gather Market and Competitive Knowledge Step 4 - Solicit Suggestions Step 5 - Write a Request for
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do not remain static. With the change in circumstances‚ if the standards are not revised the same become impracticable. The fixing of responsibility is not an easy task. The variances are to be classified into controllable and uncontrollable variances. Standard costing is applicable only for controllable variances. For instance‚ if the industry changed the technology then the system will not be suitable. In that case‚ we will have to change or revise the standards. A frequent revision of
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2.0782 g For sample C: % of ash = 2.5527 g-2.4859 g X 100 = 2.5709% 2.5527 g For average: % of ash = 2.2956 g-2.2365 g X 100 = 2.5745% 2.2956 g Variance of Ash: s2 = ∑ x2 – (∑x)2 n n-1 = 15.1142 g – (45.0174 g/3) = 0.0542 2 Standard Deviation of Ash: s= √s2 =√0.0542 =0.2328 DISCUSSION: Ash is the inorganic residue
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3.6.2 Correlation Analysis Correlation analysis is one of the data analysis method use in quantitative research when researchers intended to examine the relationship between both variables (Research Methodology‚ n.d.). The Pearson’s Moment Correlation Coefficient (PMCC) ranges between +1 and -1.If the coefficient value is +1 and -1‚ it is an indication that the relationships between both variables are strong. A value of +1 indicate that there is a positive relationship between variables‚ means that
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Case 8-28. Evaluating a Company’s Budget Procedures. 1. Identify the problems that exist in Ferguson & Sons Manufacturing Company’s budgetary control system and explain how the problems are likely to reduce the effectiveness of the system. The overall company’s strategy is not well defined by executives and communicated to the management. There is no goal other the cost reduction at total company level as well as at departmental level. Managers don’t see connection between expenses‚ revenues
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