Reference no: EM132592615

RMAA - UG 114 Research Methods in Accounting and Auditing - College of Banking And Financial Studies

Assignment - Research Methods - Concepts and its application

Task 1

Research is defined as
• A systematic means of problem solving - (Tuckman 1978)

More importantly the research sequence is perfectly synchronized with the above definition as such.

You are required to explain in your own words with appropriate references
a. How it is a systematic way of problem solving
b. Explain in detail the research sequence, step by step with appropriate examples?

Task 2

• From the following information
- Initial Investment = RO 6,000
- Revenue RO {your Student number} (for 4 years)
- Operating Expenses = RO 500 (for 4 years)
- Rate of Income tax = 25%
- Cost of Capital = 10%
- Tax Depreciation = RO 100

You are required to
a. Calculate NPV and analyze and comment on the results
b. evaluate sensitivity
i. Sensitivity of Revenue, analyze and comment on the results

ii. Sensitivity of Cost analyze and comment on the results

iii. Sensitivity of net tax rate impact analyze and comment on the results

Task 3 :
Differentiate between Marginal costing, absorption costing and variance analysis, how best these concepts helps us to arrive as decision making process and analyze the cost concepts.

Support your discussion with appropriate examples.

Task 4

Finance is identified as an area which is very active rather than passive. A continuous and active participation is very much needed in terms of a broad understanding of the major topic and in-depth analysis in the specific area.

You are required to discuss and analyze
a. Efficient Market Hypothesis

The efficient market hypothesis (EMH), alternatively known as the efficient market theory, is a hypothesis that states that share prices reflect all information and consistent alpha generation is impossible

b. Portfolio Management and the concept of diversification
Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio. ... The rationale behind this technique is that a portfolio constructed of different kinds of assets will, on average, yield higher long-term returns and lower the risk of any individual holding or security

c. Option pricing
Option pricing theory uses variables (stock price, exercise price, volatility, interest rate, time to expiration) to theoretically value an option. Essentially, it provides an estimation of an option's fair value which traders incorporate into their strategies to maximize profits

Attachment:- Assignment Brief.rar