Dear MEL Topic Readers,
ChatGPT passes exams from law and business schools
You might have used a chatbot, or chatterbot, an online chat conversation via text or text-to-speech, to get information, instructions, or solutions instead of a human agent. Launched in late November last year, ChatGPT (Generative Pre-trained Transformer) is an advanced chatbot developed by OpenAI. It has been used to generate essays, stories, and song lyrics in response to what a user asks. Recently, ChatGPT answers and essays were graded by university professors. Surprisingly, they passed exams in graduate schools for law and business. This could mean that any student can use the Ai app not only to answer questions but also to write essays and reports. The app definitely shortens the time for research, studies, and even document creation.
ChatGPT passes exams from law and business schools
You might have used a chatbot, or chatterbot, an online chat conversation via text or text-to-speech, to get information, instructions, or solutions instead of a human agent. Launched in late November last year, ChatGPT (Generative Pre-trained Transformer) is an advanced chatbot developed by OpenAI. It has been used to generate essays, stories, and song lyrics in response to what a user asks. Recently, ChatGPT answers and essays were graded by university professors. Surprisingly, they passed exams in graduate schools for law and business. This could mean that any student can use the Ai app not only to answer questions but also to write essays and reports. The app definitely shortens the time for research, studies, and even document creation.
For example,
Question: Which indicator is more accurate to predict the future growth potential of a corporation, PBR or ROE?
ChatGPT: Both the price-to-book ratio (P/B ratio) and the return on equity (ROE) are financial ratios that can be used to evaluate a corporation's growth potential. However, they measure different aspects of a company's financial performance and provide different information.
The P/B ratio compares a company's market capitalization to its book value, which is the value of the company's assets minus its liabilities as reported on its balance sheet. A lower P/B ratio indicates that a company's stock is undervalued relative to its book value, which could be a sign of potential future growth.
Return on equity (ROE) is a measure of how well a company is generating profits from its shareholders' equity. It is calculated by dividing net income by shareholder's equity. A higher ROE indicates that a company is more efficient at generating profits from its shareholders' investments, and it can be used as a sign of a company's potential for future growth.
Both P/B ratio and ROE are important indicators to evaluate a company's financial performance, but they provide different information. P/B ratio gives an idea about the company's valuation and ROE measures the efficiency of the company in generating profits from shareholders' investments. It's important to look at both indicators along with other financial metrics like revenue and earnings growth, debt levels, etc. to get a comprehensive picture of a company's financial health and potential for future growth.
Question: Which indicator is more accurate to predict the future growth potential of a corporation, PBR or ROE?
ChatGPT: Both the price-to-book ratio (P/B ratio) and the return on equity (ROE) are financial ratios that can be used to evaluate a corporation's growth potential. However, they measure different aspects of a company's financial performance and provide different information.
The P/B ratio compares a company's market capitalization to its book value, which is the value of the company's assets minus its liabilities as reported on its balance sheet. A lower P/B ratio indicates that a company's stock is undervalued relative to its book value, which could be a sign of potential future growth.
Return on equity (ROE) is a measure of how well a company is generating profits from its shareholders' equity. It is calculated by dividing net income by shareholder's equity. A higher ROE indicates that a company is more efficient at generating profits from its shareholders' investments, and it can be used as a sign of a company's potential for future growth.
Both P/B ratio and ROE are important indicators to evaluate a company's financial performance, but they provide different information. P/B ratio gives an idea about the company's valuation and ROE measures the efficiency of the company in generating profits from shareholders' investments. It's important to look at both indicators along with other financial metrics like revenue and earnings growth, debt levels, etc. to get a comprehensive picture of a company's financial health and potential for future growth.
Enjoy reading the article and learning about the potential of ChatGPT.
https://edition.cnn.com/2023/01/26/tech/chatgpt-passes-exams/index.html
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