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mutual funds

AFM

answered 3 hrs ago

Sir in this rtp question I didn’t understand the logic behind the value of listed bonds taken?

latest answer

yeah if it happens pls follow the approach

Swathi Krishna

Swathi Krishna

CA Final

8K+

4

17

Portfolio Management

AFM

answered 23 hrs ago

In the illustration compiler qn. 23, the market beta is assumed as 1, but the same qn in ICAI SM (Test your knowledge qn. 22), market beta calculated is 1.42. Generally we assume market beta as 1. How we know the that market beta is other than 1 & calculate which is implied in the qn? Whether we need to follow ICAI suggested answer?

latest answer

Thank you sir

VISAAGAN R

VISAAGAN R

CA Final

940

2

25

Futures

AFM

answered 1 day ago

How to know whether to sell or buy futures when transaction in Euros and buying/selling futures in Pounds? Can we solve this by buying Pounds Futures as the Pound is depreciating (Euro is appreciating) instead of selling Pounds Future?

latest answer

Invoice is in euro and company is in UK ( pounds) If you have to enter into futures contract or forward contract , the company will sell euro to bank and buy pounds from bank.

shamanth rm

shamanth rm

CA Final

730

1

34

Business Valuation

AFM

answered on 28-Feb-24 12:22

Sir, Will the current market price (the traded value) of a share, factor in the impact of debt in the company. If that is the case then why, share price × no of shares = Market cap and not Enterprise value ?

latest answer

Say if risk is too high then EV will come down. EV is computed as DCF of future cash flows discounted at cost of capital If Kc is too high due to higher debt, the discount rate is high and it leads to lower FCFF and lower NPV and lower EV and hence lower equity value

Varshini Pandiarajan

Varshini Pandiarajan

CA Final

30

1

23

Derivatives - Options

AFM

answered 2 days ago

In this illustration, can we assume it is net cash settled and provide expiry date cashflows as the difference between market price and strike price?

latest answer

Okay sir thank you

susee arunachalam

susee arunachalam

CA Final

24K+

2

36

Portfolio management

AFM

answered on 28-Feb-24 10:58

Sir in TYK 33 , how much marks will be deducted if we didn’t show Jensen alpha and instead we just gave statement by comparing the expected return and required rate return (without showing the difference amount as in Jensen alpha) and stating that it undervalued .

latest answer

Not really sure.. depends on instructions given by icai to examiners

Swathi Krishna

Swathi Krishna

CA Final

8K+

3

37

Portfolio management

AFM

answered on 24-Feb-24 10:21

Sir, in case of perfectly correlation , the weighted average of the risk of the security can be used to find the risk of the portfolio right ?

latest answer

If correlation is 1 then yes

Swathi Krishna

Swathi Krishna

CA Final

8K+

1

29

Interest Rate Risk Management - Interest Rate Options

AFM

answered on 24-Feb-24 14:41

Hello Sir, In this problem, 1. Why are we taking 4 periods for premium calculation when the reset periods are 3? 2. Will this answer be given marks? (attached screenshot)

latest answer

Okay sir, thank you so much

susee arunachalam

susee arunachalam

CA Final

24K+

4

60

Can we expect free days for afm too like fr

AFM

answered on 22-Feb-24 18:41

Can we expect free days for afm too like fr

latest answer

Already provided. Not in future

Ravi Teja

Ravi Teja

CA Final

10

1

60

CAPM

AFM

answered on 22-Feb-24 16:01

When CAPM return > expected return - Sell . But when Price as per CAPM > actual price - Buy?. Did not understand the logic

latest answer

CAPM is ideal - this means stock price reflects this return Expected s what is going to happen as per your estimate If capm return is > expected return ( what is likely to happen), it means stock is priced high than what it should be and hence sell. If capm return is <what is likely to happen, stock price is low whereas it should be high and hence buy. Secondly when it comes to only price - IF CAPM price is > actual price - here we are not aware of expected return from our side this means price as per ideal is > what is available in market so buy

shamanth rm

shamanth rm

CA Final

730

1

39

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