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2 years ago

What are the types of model risk

1 answer:

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1. Wrong model.
2. Model implementation.
3. Model usage.
4. Uncertainty on volatility.
5. Time inconsistency.
6. Correlation uncertainty.
7. Complexity.
8. Illiquidity and model risk.

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Cash receipts A firm has actual sales of $ 60 comma 000 in April and $ 64 comma 000 in May. It expects sales of $ 75 comma 000 i

nirvana33 [79]

Answer:

Month incurred Amount June July August

June 75,000 37500 18,750 18,750

July 95,000 47,500 23,750

August 95,000 47,500

37,500 66,250 90,000

The expected cash receipts are:

June = $37,500

July = $66,250

August = $90,000

Explanation:

The pattern of collection of sales is that 50% are collected in the months of sales while 25% each will be collected in the following month and following 2 months. For instance, 50% of June sales are collected in June, 25% are realized in July and 25% are collected in August. 50% of July sales are realized in July and 25% are collected in August.

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3 years ago

You can buy a car that is advertised for $24,600 on the following terms: (a) pay $24,600 and receive a $4,600 rebate from the ma

Vadim26 [7]

Answer:

A. $20,000

B. $17,234.18

C.Option (b)

Explanation:

Obviously, the option with lower Present Value would be the best option to buy the car. The Present Value of the options can find out as following

REQUIREMENT A

Price of car = $24,600

Rebate = $4,600

Present value of the payments for option = Price of the car – rebate

Present value of the payments for option (a) = $24,600 - $4,600

Present value of the payments for option = $20,000

REQUIREMENT B

We can use the following Present Value of an Annuity formula to calculate the present value of the payments

PV of the payments for option = PMT * [1-(1+i) ^-n)]/i

PV of the payments for option (b) (PV) =?

Monthly payment PMT =$410 per month

Number of payments n = 5 years *12 months = 60

Monthly interest rate i=1.25% per month or 0.0125

PV of the payments for option = $410 x [1- (1+0.0125) ^-60]/0.0125

PV of the payments for option = $17,234.18

REQUIREMENT C.

Which is the better deal?

Option (b) is better deal as the present value of payments ($17,234.18) is less than Present value of the payments for option (a); $20,000.

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2 years ago

Using the glossary will not help a reader develop better reading strategies true or false

Sidana [21]

When a reader uses their resources within the book to understand the book and how it is constructed, it helpes the reader develop better reading strategies. Using the glossary lets the reader identify and find information at a quicker rate which in turn, helps develop better reading strategies. Therefor, the answer is false, because the reader does develop better reading strategies when they use the glossary.

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2 years ago

A(n) ________ is defined as the frameworks that employees can use to help make conclusions about ethical actions by following a

madreJ [45]

Answer:

Ethical Audit

Explanation:

A(n) ethical audit is defined as the frameworks that employees can use to help make conclusions about ethical actions by following a short, step-by-step list of rules.

An ethical audit can also be defined as the guidance for employee behavior provided in policies and procedures of the company or employer

Usually an ethics audit will aid an employee to make a comparison between actual employee behavior and the expected employee behavior provided in policies and procedures.

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2 years ago

Read 2 more answers

Employees who have the ability to work well with others to get things done are said to have _____ skills.

lozanna [386]

Employees who have the ability to work well with others to get things done are said to have technical skills.

An employee is an employee hired by an employer to do a specific job. Employers control how employees are paid, when employees work, and how employees work. In return, employees receive benefits that contractors do not.

You should take care of your employees as much as you take care of your customers. If you trust and value your employees, they will be more committed to serving your customers well and ultimately contributing to your company in a great way.

An employer is an individual, firm, or organization that employs people and pays them wages for their work. A person who works and gets paid is called an employee.

Learn more about employees here:brainly.com/question/1190099
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1 year ago