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Portfolio Management- Illustration 26
AFM
answered on 14-Sep-23 07:41
Hello Sir, In this problem, we have assumed GOI bonds return as risk free rate however the beta value is given in the question as 0.01 which is not zero as of a risk free asset. Also as you mentioned, ICAI answer is confusing as they have computed Market Portfolio using the securities given in the question. How do we approach these types of questions in the exam?
latest answer
Unlikely that you will get such questions in exam going by recent trend. Even if they come - take most reasonable assumption and move forward.
Suresh Avinash
CA Final
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Security valuation Duration
AFM
answered on 01-Sep-23 21:21
Sir I didn't understand the short cut formula for calculating Duration of bonds
latest answer
Ok sir
A Sivani
CA Final
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478
Query with teacher day spl course
AFM
answered on 01-Sep-23 04:52
If we purchase Teacher's day spl ( without books) - do we get pdf of books or not ?
latest answer
Pdf - yes
Enuguru Sai Nithin
CA Final
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529
Corporate valuation
AFM
answered on 29-Aug-23 17:31
Sir, in this question we could find the enterprise value = value of the firm using EV/EBITDA approach and also through cash flow based model. Institute has found it using two models. However wrote the value of the firm using the cash flow model. Why? If like this comes in exam what should we do?
latest answer
Okay sir thanks
Swathi Krishna
CA Final
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543
Corporate Valuation
AFM
answered on 29-Aug-23 07:53
Sir, here why are we discounting the cash flow with 13% even though the cost of capital is 12% from the 5th year ?
latest answer
Okay sir Thank you
Swathi Krishna
CA Final
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458
Revision lecture
AFM
answered on 14-Aug-23 20:02
Are there are revision series for ca final sfm ?
latest answer
Yes will be uploading them from next week onwards
JHEEL JETHWANI SHANKAR
CA Final
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508
Mergers and Acquisitions
AFM
answered on 11-Aug-23 15:53
Sir in this question they haven’t said the P/E Ratio is same after the merger then how can we multiple the P/E ratio with EPS to find out the Market value post merger?
latest answer
Ok. If you do not consider the old pe ratio what do you want to use?
Swathi Krishna
CA Final
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552
Portfolio Management- TYK question no 15
AFM
answered on 11-Aug-23 15:48
How can we get the value of y1 is 0 by solving this formula
latest answer
0.6 Y2 and 1.2 y2 are two terms in two equations which can be eliminated by doubling the equation therefor ey1 will be 0
lipsana hamzamon
CA Final
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512
Portfolio Rebalancing
AFM
answered on 31-Jul-23 21:01
How is Rs 4502 offloaded in this case?
latest answer
Sell RIsk free ( 242287-237785) = Invest in Equity 64430-59928 = 4502 What is your query here ?
Swathi Krishna
CA Final
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589
Derivatives- Options Illustration 7
AFM
answered on 26-Jul-23 16:48
Hello sir, In this problem, they have given risk free interest rate as 3.6% and a one month call. Why did we not take e^rt as e^(0.036*1/12)
latest answer
How will compute the 12th root of e power 3.6%? In this probelm they did not mention that 3.6% is 1 year disc rate or 1 month disc rate it is easier to assume it as rate for 1 month and solve it. These are simple problems that will not be asked in exam also in exam they will be more specific whether the rate if for a month or year. What you said is also right but it is a computation nightmare using a normal calculator
Suresh Avinash
CA Final
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