Free Sample   Copulae In Mathematical And Quantitative Finance

100000+

Students can't be Wrong!

767452

Orders

4.9/5

Ratings

4981

PhD Experts

# Copulae In Mathematical And Quantitative Finance Click this icon and make it bookmark in your library to refer it later.GOT IT

## Question:

Describe about the Copulae in Mathematical and Quantitative Finance?

### Calculation:

 YEARS 2011 2012 2013 2014 2015 5 YEARS AVERAGE 2016 - FORECAST (HIGH) 2016 - FORECAST (LOW) £m £m £m £m £m £m £m £m REVENUE UK 40,766 42803 43582 43570 43573 42,859 47930.3 42265.81 EUROPE 9192 9866 9319 9267 8515 9,232 9366.5 8259.55 ASIA 9802 10828 10045 10309 9884 10,174 10872.4 9587.48 US 495 0 0 0 0 99 0 0 TESCO BANK 919 1044 1021 1003 1024 1,002 1126.4 993.28 GROUP REVENUE 61,174 64541 63967 64149 62996 63,365 69295.6 61106.12 TRADING PROFIT UK 2504 2478 2272 2191 467 1,982 EUROPE 527 529 329 238 164 357 ASIA 605 737 733 692 565 666 US -186 0 0 0 0 -37 TESCO BANK 264 225 191 194 194 214 GROUP TRADING PROFIT 3714 3969 3525 3315 1390 3,183

A spreadsheet of TESCO PLC is calculated for the period of 2011 to 2015 on the basis of the data provided. It is as follows:

From the calculated table it can be said that, the group revenue was £ 61174 million in the year 2011, £ 64541 million in the year 2012, £ 63967 million in the year 2013, £ 64149 million in the year 2014, and £ 62996 million in the year 2015. This indicates that the average group revenue for the said five years is £ 63365 million. This implies revenue earning follows similar trend (Jaworski, Durante and HaÌˆrdle, 2013).

On the basis of the revenue earned in 2015, both high and low forecast for the year 2016 can be done and the result £ 69295.6 million for high forecast shows more revenue earnings, and £ 61106.12 million for low forecast shows lower revenue than the present, but not too low (McCraw, 2012).

Similarly, the group trading profit was £ 3714 million in the year 2011, £ 3969 million in the year 2012, £ 3525 million in the year 2013, £ 3315 million in the year 2014 and £ 1390 million in the year 2015. This implies that with the decrease in the group revenue earning in the year 2015, the group trading profit has also decreased in the year 2015, as the group cost has increased in the year 2015 to £ 61606 million from £ 57460 million in the year 2011.

The situation or the trend of the company for the five years can easily be understood and explained from the following line graph, column chart and pie chart (Ross, 2012):

This line graph represents the group revenue of the company for five years. It is clear from the graph that, suddenly the revenue increases in the year 2012, then it started to fall slowly.

This column graph represents the group trading profit of the company for five years. It is clear from the graph that, the highest profit occurred in the year 2012; the revenue earned was also highest. And the profit decreased most in the year 2015.

This pie chart represents the group cost of the company for the five years, calculated by deducting the group profit from the group revenue (Thompson, 2012). This indicates that the cost was almost similar in the five years.

## References:

Jaworski, P., Durante, F. and HaÌˆrdle, W. (2013). Copulae in mathematical and quantitative finance. Berlin: Springer.

McCraw, T. (2012). The founders and finance. Cambridge, Mass.: Belknap Press of Harvard University Press.

Ross, S. (2012). Fundamentals of corporate finance. New York: McGraw-Hill.

Thompson, T. (2012). Benchmarking the finance function 2012. Morrisotwn, NJ: Financial Executives Research Foundation.

OR

### The Role Of Foreign Banks In Emerging Countries

IntroductionBanks act as a financial intermediary involved in borrowing and lending activities. It accepts deposits and savings from various entities such as genera...

### Report On Financial Ratio Analysis Of Wilmar Internation Ltd

Brief About Wilmer International LimitedThe company was incorporated in 1991. It is recognized as Asia’s top aqribusiness group. The company has very h...

### Capital Market Research

Capital market is the stock value and stocks as a rule and what influences the stock cost and not of the item that is for the most part needed by the ...

### External Sources Of Finance

IntroductionA company has a wide range of sources to finance different activities in the business. Company can choose from various sources of finance depe...

### Capital Budgeting

Answer 1:Calculation of project IRR:Initial Cash Flow: \$3,000,000.00Discounted Net Cash Flows at 19%  Year  Cash F...

### Banking Industry In United Kingdom

Question: Write about the application of strategic positioning models to banking industry in United Kingdom.  IntroductionThe banking industry o...

### Basic Financial Accounting Theory You Should Know

Question1:newspaper article or web page report of an item of accounting news, i.e. it refers to a current event, consideration, comment or decision that has been pu...

### Better Business Bureau: Protecting Consumers & Dealing With Organizational Ethics Challenges

Question :(1) Which is the Better Business Bureau's most important stakeholder, business or consumers ?(2) Do you believe the BBB can be truly impartial given its...

### Financial Accounting And Reporting: Halides Ltd

Question :(1) When finalising the financial statements for the year ended 30 June 2014 two significant errors were made and there is debate as to whether ...

### Income Tax Calculation: Australia

Question:Part One: Income tax rates  Martha is a resident who is 40 years old and has \$170,000 of taxable income for the current income year. Calculate her b...

### Auditing Taxation Australia

Question:1)You, the auditor, attended the inventory count (stocktake) of your client Smith Equipment and observed the following during the count:1. Warehouse ...

### Qualitative Characteristics Of Financial Statement

Question:If it accepted that financial information should be useful for economic decision making in terms of deciding whether to make resources available to a repor...

### Auditing And Professional Practice Australia

Question:The engagement partner has requested a meeting tomorrow to discuss audit plan for MTI She has requested several documents for that meeting. 1. A preliminar...

### Subprime Mortgage Crisis

Questions :1. Subprime mortgage crisis is an example of a financial crisis that affected global markets worldwide. Give another example of a financial crisis i...

### SWOT Analysis Of Pacific International Lines Company

Question :Explain the SWOT Analysis Of Pasific International Lines Comapany.  Answer :IntroductionPacific International Lines Company is a pri...

### Financial Analysis And The Investment Decisions

Question :Obtain annual financial reports of BP (petrol company) for the period 2010 to 2013 inclusive. Do a financial analysis based on ‘Consolidated’ ...

### Capital Asset And Pricing Model

Questions :1. A Critical Assessment of The Capital Asset Pricing Model (CAPM) You are required to- (a) Describe the Capital Asset Pricing Model, ...