Answer:
It determines the degree to which the net present value reacts to changes in a single variable
Explanation:
Sensitivity Analysis is a tool which is used in financial modeling to analyze how the net values of a set of independent variables affect a single dependent variable under certain specific conditions.
It shows how different values of the independent variable causes changes in the single dependent variable. It predicts the result of a decision given a certain range of variables.
Answer:
$5,857; $1,105
Explanation:
Cash flows from investing activities:
= Proceeds from sale of property and equipment + Sale of investments - Purchase of property, plant, and equipment
= $6,594 + $134 - $871
= $5,857
Therefore, the net cash provided by the investing activities is $5,857.
Cash flows from Financing activities:
= Borrowings under line of credit (bank) + Proceeds from issuance of stock - Payments to reduce long-term debt - Dividends paid
= $1,417 + $11 - $46 - $277
= $1,105
Therefore, the net cash provided by the investing activities is $1,105.
Answer: The correct answer is "b. executing".
Explanation: Andrew is in the "executing" proccess stage.
In the execution phase Andrew must ensure that all the services contracted for the development of the activities fulfill their function and have the quality required to meet the needs and meet the contracted level.
Answer:
The correct answer is option b.
Explanation:
If the federal fund's rates were above the targeted rate, the Fed would need to move it towards the targeted rate. To move the interest rate towards the targeted rate, the government would need to increase the money supply. This can be done by buying bonds. When the Fed buys bonds they pay for it, this causes the money supply to increase. As the supply curve shifts to the right, the interest rate will fall down.
Answer:
C. Less than the variance of each asset, except when the two assets are perfectly positively correlated.
Explanation:
In diversification, there is the less risk in the portfolio that can be determined by the standard deviation. Also the risk can decrease at the time when the asset is lower than the perfect correlation and the same should be place in portfolio. Now if the asset along perfect positive correlation place in the portfolio so the the portfolio risk could be large than the risk of the individuals assets
