What is the expected return? What is the variance? What is the standard deviation?

Q: Why do we need to have a "base" for the computation of different types of variances under gross…

A: Gross Profit: It is calculated by subtracting operating expenses from the operating income for the…

Q: Find the variance &Standard deveation of the portfolio

A: Excel Spreadsheet:

Q: Explain the meaning of the joint price-quantity variance.

A: Joint price-quantity variance: Variances are the difference between the actual results and the…

Q: b) Why are separate price and quantity variances computed?

A: Variances is a word used for finding out the difference between the actual and standard levels set…

Q: Calculate the following and determine if variances are favorable

A: Compute the total standard material cost.

Q: What is the sales price variance?

A: Sales Price Variance is the variance in total revenue due to different selling price from the…

Q: Explain what is meant by and the limits of mean variance analysis when it comes to investment…

A: Mean-Variance Analysis is an investment decision tool technique that is used by investors to make…

Q: explain activity variances and spending variances with example

A: Variance is defined as the difference between the actual and the budgeted or expected amount.…

Q: What is overhead variance?

A: The variance is the difference between the actual figures with comparison to the budgeted figures.…

Q: What is the meaningful total variance for performance evaluation purposes?

A: Flexible budget: A flexible budget is a budget prepared by the company for effective evaluation of…

Q: How are budget variances calculated and used as performance measures? Provide numerical example?

A: budget is the predefined calculations that provide the plan of using the resources and generating…

Q: How much is the sales price-volume variance?

A: Changes in sales price from budget price = P100 Given, Sales quantity variance which is unfavorable…

Q: What is a spending variance and what does it mean?

A: A variance means difference between actual and budgeted amounts. A spending variance is difference…

Q: What is an activity variance and what does it mean?

A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…

Q: How does the static budget affect the cost and efficiency variances?

A: Definition:   Static budget: Static budget is a master budget that is prepared for only one level of…

Q: What is the cost price variance? * G

A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…

Q: variances

A: Variance means change Variances arise after comparison with standard to Actual.   Types of Variances…

Q: a. what is avariance? b. when might a favorable variance not be a good outcome

A: What is Variance :  A variance is the difference between the cost or revenue planned or budgeted by…

Q: What is the expected spot rate?

A: A spot rate is a price quoted for immediate settlement on an interest rate, commodity, security, or…

Q: Suppose an investment is equally likely to have a 30% return or a -5% return. The variance on the…

A: 50% of probability of both returns Return 1 = 30%  Return 2 = -5%

Q: cost volume variance?

A: Cost Volume Variance:  (Budgeted units - Actual units produced) × Budgeted price per unit

Q: What is the relationship between management by exception and variance analysis?

A: Management by Exception: Management by exception is the process of finding the deviations in the…

Q: How is the fixed overhead volume variance different from the other variances?

A: Variance:  Variance refers to the difference level in the actual cost incurred and standard cost.…

Q: Which of the following set of terms describes the same type of variance?       Price variance, rate…

A: The variance is calculated as difference between the actual results and standard output.

Q: what is a variance? b. when might a favorable variance not be a good outcome?

A: Standard Costing System: The Standard Costing system provides for cost estimation, budgeting for…

Q: How do you find the standard quantity for efficiency variance?

A: Management should pay particular attention to those that are uncommon or noteworthy. Firms may…

Q: What is the sales price variance?

A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…

Q: What are the variances in a 4-variance analysis?

A: Variable overhead spending variance Variable overhead efficiency variance Fixed overhead spending…

Q: Define unfavourable variance.

A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…

Q: What is unfavorable variance? Give three examples?

A: Unfavorable Variance: Unfavorable variance is the variation in the actual and planned output which…

Q: Please calculate the variance

A: Expected Return or mean is the average return of the data given. Risk is the volatility around the…

Q: What is the Variance of returns for Security XYZ?

A: Outcome Probability Return A 20% 20% B 80% 25%   Expected return = (Probability of…

Q: In performing Variance Analysis for Direct Material costs, the variances include Price and Rate…

A: While performing Variance analysis for Direct Material Costs include Direct Material Price Variance…

Q: How frequently do you believe that firms should conduct variance analysis? Explain why?

A: Variance analysis a technique of control that is used by organisations to compare actual costs with…

Q: What does the concept of ‘management by exception’ mean and what factors are considered when…

A: Management by exception is a technique used in management information system.

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.