A Time Series with Forecast Values Is Presented in the Following

question 87

Multiple Choice

A time series with forecast values is presented in the following table: $$\begin{array} { | r | r | r | } \hline \text { Month } & \text { Actual. } & \text { Forecast } \\\hline J a n & a & \\\hline \text { Mar } & 12 a & 1.1 a \\\hline \text { May} & 1.15 a & 1.2 a \\\hline J ul & 1.25 a & 12.21 a \\\hline \mathrm { Sep } & 1.3 a & 1.25 a \\\hline\end{array}$$
If the mean absolute deviation (MAD) is 257, then a = ______.

• A)4283.33
• B)428.33
• C)15.42
• D)42.833
• E)1.542

Distinguish between types of bonds, focusing on municipal bonds.

Comprehend the process of indirect transfer of funds through banking institutions.

Explain the characteristics and purposes of U.S. Treasury securities.

Recognize the maturity periods of money market instruments.

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Definitions:

Internal Rate of Return

A financial metric used in capital budgeting to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Present Value Factor

A multiplier used to calculate the present value of a future amount of money or stream of payments.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in a linear fashion.

Desired Rate

Typically refers to a target interest rate set by an individual or entity, often relating to the return on investment or loan interest rates they wish to achieve.