Irregular variation in time series analysis, Financial Management

Assignment Help:

Irregular Variation

As the name suggests, the movement of the variable is random in nature without consistency and therefore, highly unpredictable. Since this type of irregularity exists for very short durations, the period under consideration will be of days, weeks and at the most of months. An appropriate example would be, a sudden spurt in the price of the share of a company rumors of a takeover. The irregular variation is shown in the figure below. Irregular variation is so inconsistent, that there is not a suitable mathematical model which would explain the phenomena under consideration.

Figure

520_irregular variation.png

Till now we have expressed the variations in terms of only one variation throughout. In the real world, this is seldom true and more often we find time series exhibiting more than one type of variation. In this part, we look at an example and examine it for three components of variation leaving out irregular variation.


Related Discussions:- Irregular variation in time series analysis

Explain dual currency bond, Explain Dual Currency Bond A dual currency ...

Explain Dual Currency Bond A dual currency bond is a straight fixed-rate bond that is issued in one currency and pays coupon interest in that similar currency.  At maturity, th

Credit enhancement of asset-backed security, Credit enhancement of an...

Credit enhancement of an asset-backed security implies the existence of support for one or more of the bondholders in the structure. Credit enhancement levels var

What is the importance of investigation of incidents, Q. What is the import...

Q. What is the importance of investigation of incidents? 1. Incident investigation is the process of identifying the underlying causes of incidents and implementing steps to pr

Cash flow duration, Cash flow duration, like effective duration, cons...

Cash flow duration, like effective duration, considers the change in the cash flow due to prepayment with the change in the interest rate. In effective duration,

Define the term in brief -called-up share capital, Define the term in brief...

Define the term in brief -Called-up share capital Called-up share capital that you may find in some of balance sheets. It refers to that part of subscribed capital, which share

Estimate the companys wacc, Assemble all other inputs/assumptions based on ...

Assemble all other inputs/assumptions based on the past data. Use your best judgment to have the most reasonable estimates. Tasks 1. Prepare an Excel spreadsheet containi

Operational cycle, using the operating cycle and any other financial manage...

using the operating cycle and any other financial management knoweledge,dicuss the applicability of such a cycle to the poultry biussiness in uganda (consider broilers)

Calculate the total cashflows, Calculate the Total Cashflows from 2007 - 20...

Calculate the Total Cashflows from 2007 - 2011.  Suppose that the company will require to increase their annual investment in fixed assets (representing new equipment) at the simil

What are the functions of financial management, Functions of Financial Mana...

Functions of Financial Management Traditional function of financial management has been limiting the role of finance toraising and administrating of funds required by the compa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd