This is known as in-sample forecast. It estimated the model using all available data and then comparing it to the model's fixed values to the actual realizations. But, this method is known to attract an overly positive picture of the model's forecasting ability since common fitting algorithms tend to take pains to avoid big prediction errors and are also inclined to overfitting (mistaking noise for signal in the data).
Answer:
The correct answer is : False.
Explanation:
Capital budgeting refers to the planning process used to determine if the long term investments of an organization are worth the funding of cash through the firm's capitalization structure. This concept helps to creates accountability and measurability and to understand the risks and returns involved in the business.
Answer:
$32,000
Explanation:
Calculation to determine How much would Becker Company need to borrow to achieve its desired ending cash balance
Using this formula
Desired ending cash balance=[Ending cash balance-Budgeted beginning cash balance+
(Budgeted cash disbursements-budgeted cash receipts)]
Let plug in the formula
Desired ending cash balance=[$100,000-$70,000+($254,000-$252,000)]
Desired ending cash balance=$30,000+$2,000
Desired ending cash balance=$32,000
Therefore The amount that Becker Company need to borrow to achieve its desired ending cash balance is $32,000
Answer:
The answer is: net economic loss = -$750
Explanation:
To determine the economic gain or loss of this investor we can use the following formula:
economic loss = {[(current stock price - future stock price) x number of stocks] + [(future stock price - strike value) x number of stocks]} - cost of call option
economic loss = {[($45 - $54) x 100] + [($54 - $50) x 100]} - $250 =
economic loss = [(-$9 x 100) + ($4 x 100)] - $250 = (-$900 + $400) - $250
economic loss = -$500 - $250 = -$750
