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Articles on Trending Technologies
Technical articles with clear explanations and examples
Reliability Testing Tutorial (What is, Methods, Tools, Example)
The chance of failure-free software execution for a set period of time in a given environment is defined as reliability.People nowadays naively believe in any program in this mechanized environment. People believe that whatever outcome the software system produces is always correct, therefore they follow it. That is a common mistake that we all make.Users believe that the data displayed is correct and that the software will always work properly. This is where the requirement for reliability testing arises.Reliability TestingReliability testing is a software testing procedure that determines if a piece of software can operate without fail for a set ...
Read MoreQuality Management Plan Template with Sample Example
Quality Management PlanIt is a well-defined set of documents to ensure and manage the quality throughout software development life cycle (SDLC) efficiently. The main objective of creating a quality management plan is to make sure that the project output is of adequate quality and suitable for the software. It helps guide the Project Manager and other to execute quality management and quality assurance activities for a project. This plan is usually developed by a contractor and reviewed by the customer.The quality management plan describes how the quality has to be managed. It determines quality policies and procedures for the project ...
Read MoreDo Testers have to Write Code?
A common query that keeps running in the mind of every IT aspirant is: do software testers have to write or learn code? In this article, we will be discussing the solution to this question. Software testing can be done manually as well as through automation. We will be discussing what skills a good tester must possess, what all knowledge they must have, and how much coding knowledge a good tester must have.Before answering this question, we must understand various software testing roles. Quality assurance (QA) testing in software testing is primarily divided into two broad categories −Quality Analysts − ...
Read MoreBackend Testing Tutorial (What is, Tools, Examples)
Backend TestingBacked testing is a method or technique that examines the server of database side of web applications or software. The primary motive of performing this test is to test the application layer or database layer to make the software defect-free, and prevent deadlock, data corruption, or data loss. For seamless and efficient working of a software, its GUI and database must interact with each other. Usually, databases are validated for: ACID functions, CRUD operations, Schema, Migration, business rule conformance, security purposes and performance.This testing is also referred to as "database testing". The data entered through the frontend is stored ...
Read MoreHow to calculate Arithmetic Average Return?
The Arithmetic Average Return is calculated by adding the rate of returns of "n" sub-periods and then dividing the result by "n". In other words, the returns of "n" sub-periods are added and then divided by "n" to find the value of the average return. As it is also the process of finding the average of a series of numbers, the average return is sometimes called as "Arithmetic Average Return".Here is the formula to calculate Arithmetic Average Return −$$\mathrm{Average\:Return =\frac{Total\:Value\:of\:the\:Return}{Total\:Number\:of \:Returns}}$$Investors and market analysts normally use the arithmetic average return to check the past performance of a stock. It is ...
Read MoreWhat constitutes a return on a single asset? How is it calculated?
The typical reason for an investor to invest in a financial instrument is to make current income from dividends and interest income. For a stable company, the investments will earn a reasonable return that is the Expected Rate of Return (ERR) on given investments. Some investments such as debentures, bank deposits, public deposits, bonds, etc. carry a predetermined fixed rate of return that is usually payable periodically.Note − The sole aim of the investor investing in a single asset is to get the maximum returns. Some fixed income instruments offer less returns, but they are less risky too. Increasingly risky ...
Read MoreWhat is meant by Present Value of Growth Opportunities (PVGO)?
Present Value of Growth Opportunities or PVGO represents the component of a company’s share value that relates to expectations of the investors in the growth of earnings. PVGO is the difference between the total value of a company’s shares from which the net present value of its earnings is deducted, assuming there is no growth in the values of the share. PVGO is also known as "value of growth".A company’s future income can be better represented in two layers: the first layer represents a perpetuity having constant return and the second layer represents the future growth in earnings.$$\mathrm{𝑉_{0} = PV_{NG} ...
Read MoreHow is the expected return on a portfolio calculated?
Rather than taking each rate of return and multiplying them with the weight to get the total weight of each asset, there is a simple formula to calculate the expected rate of return. The expected rate of return of a portfolio or simply the return of a portfolio is the given weighted average of the expected returns on the assets.ExampleLet's take an example of a two-asset portfolio and see how to calculate its expected return. Let’s assume an investor has invested 50% of his investment in X and 50% in Y.$$\mathrm{ERR\:of\:Portfolio = (Weight\:of\:Security\:X × 0.5) + (Weight\:of \:Security\:Y × 0.5)}$$Note ...
Read MoreHow is unrealized loss or gain treated in total returns?
Unrealized gains are profits from the stock price increase over the buying price of the stocks one still owns. The gains are unrealized as you have not realized the increase in profits in your bank account yet. In such cases, one won't understand the gain until one sells the stock, and the price could change again before the stocks are sold.Unrealized gains do not consider the taxes one will owe when he or she does cash out. Neither does it consider the transaction commissions to sell the stock. When the investors sell the stock, they will have to pay taxes ...
Read MoreCalculating historical interest in Ordinary shares, bonds, and T-bills
Interest on Ordinary SharesA Rate of Return (RoR) is the loss or gain from an investment that is held over a certain period of time. In other words, the rate of return of an investment is the loss (or gain) compared to the initial cost or investment. The net gain or loss is typically expressed in percentage terms. When the RoR is negative, it is considered a loss and when the ROR is positive, it reflects a gain on the investment.RoR is calculated with the following formula −$$\mathrm{RoR =\frac{End\:Value\:of\:Investment − Initial\:Value\:of\:Investment}{Initial\:Value\:of\: Investment}× 100}$$The point to note here is that any gains or losses ...
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