Creating efficient frontiers using excel. Suppose we have 3 risky assets whose net return has the mean vector and variancecovariance matrix given below: Asset Mean VarianceCovariance Matrix 1 2 3 0.06 0.12 0.03 1 0.3 0.3 0.3 1 0.3 0.3 0.3 1 Weights Ones Mean Portfolio Return 1 1 1 0.176666122 Portfolio Portfolio Portfolio Variance STD Constraint 2.42961 1.558721 1 0.079372 1.603166 -0.68254 To model the portfolio choice problem‚ I begin by highlighting the mean vector and giving
Premium Variance Standard deviation
2x2+300. a) Find profit function P(x) =R(x) – C(x) & sketch graph. b) How many days in advance should the event be announced in order to maximize profit. What is the max profit? c) What is the ratio revenue to cost Q(x) =R(x)C(x) at the optimal announcement time found in part(b). What respond when x-> 0. Interpret the result. 3/ A manufacturer can produce digital recorders at a cost of $50 apiece. It is estimated that if the recorders are sold for p dollars apiece consumers with buy
Premium Function Marginal cost
Master Budget Master Budget Definition The master budget is the aggregation of all lower-level budgets produced by a company’s various functional areas‚ and also includes budgeted financial statements‚ a cash forecast‚ and a financing plan. The master budget is typically presented in either a monthly or quarterly format‚ and usually covers a company’s entire fiscal year. An explanatory text may be included with the master budget‚ which explains the company’s strategic direction‚ how the master
Premium Budget Income statement Cash flow
Budget Interpretation Budgets help to bring spending under control and lead the way for the development of plans that enable an organization to become or remain fiscally sound. For an organization to develop or maintain financial stability‚ it must understand the purpose of budgeting and how to apply the various budgeting techniques that will help promote and expand the business. Budgeting requires organizations to use financial projections to attract investors and secure grants or donations‚ which
Premium Management Budget Finance
the power industry both in the area of power plant construction and operations. It is providing power at the cheapest average tariff in the country. With its experience and expertise in the power sector‚ NTPC is extending consultancy services to various organizations in the power business. NTPC is committed to the
Premium Electricity generation Coal
BUDGET According to CIMA ‚ Official Terminology “A budget is a financial and /or quantitative prepared prior to a defined period of time ‚ of the policy to be pursued during that period for the purpose of attaining a given objective.” In the words of Crown and Howard ‚ “ A budget is a pre- determined statement of management policy during a given period which provides a standard for comparison with the results actually achieved.” BUDGETRY CONTROL Budgetary control is the process of determining
Free Budget Budgets
BUDGET PROCESS The budget combined with individual objectives or targets provides the basis on which employees need to be motivated and stretched. In the absence of such a structure‚ spending may become higher than necessary and the extra effort required to help bring in the required revenue may not be made. As the budget can be seen as a constraint on a department’s or an individual’s activities‚ it may not always be warmly embraced. Therefore the motivational aspect needs to be carefully managed
Premium Budget Organization Budgets
Company profile Date of Establishment | 1935 | Revenue | 1386.83 ( USD in Millions ) | Market Cap | 249989.56450195 ( Rs. in Millions ) | Corporate Address | Mumbai Central‚‚Mumbai-400008‚ Maharashtra www.cipla.com | Management Details | Chairperson - Y K Hamied MD - Y K Hamied Directors - Amar Lulla‚ H R Manchanda‚ K A Hamied‚ M K Hamied‚ M R Raghavan‚ Mital Sanghvi‚ Pankaj Patel‚ Ramesh Shroff‚ S A A Pinto‚ S Radhakrishnan‚ V C Kotwal‚ Y K Hamied | Business Operation | Pharmaceuticals &
Premium Executive director Board of directors Managing director
attained when good plans are married with effective control systems. Most organizations conduct their planning and control processes through implementation of budgetary control system. Budgetary control system is the system of using budgets as a means of planning and controlling all aspects of producing or selling commodities and services (By J.Batty) An organization will never lose direction and means of measuring performance if it will implement the
Free Budget Budgets Control system
Question: Budget acts as planning and monitoring tools. Critically evaluate. A budget is a financial plan for the future concerning the revenues and costs of a business. However‚ a budget is about much more than just financial numbers. Without a budget‚ the business owner is literally shooting in the dark when it comes to trying to plan expenditures for the business and match them to sales revenue. Budget is not only a plan of action for a business; it is also a tool for monitoring performance
Premium Net present value Cash flow Rate of return