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PM
CFA Level I
answered 1 hr ago
Sir pls explain why return as per CAPM is lower then market return we say stock is undervalued?is it just a rule or any logic is there
latest answer
CAPM
Dhakshana Dhakshana
CFA L1
★ 18K+
1
35
porfolio
CFA Level I
answered 7 hrs ago
Relative to portfolios on the CML, any portfolio that plots above the CML is considered: A.inferior. B.inefficient. C.unachievable. ans is c pls say why
latest answer
Above CML means above the CML line If it is above line for same risk you get higher return . That means it is superior and more efficient So options a and b are out Such a portfolio is not possible because in a market for same risk you will not get higher return
Dhakshana Dhakshana
CFA L1
★ 18K+
1
49
Compiler
Direct Taxation
asked 11 hrs ago
Sir, will Direct & Indirect Tax compiler be available anytime soon
latest answer
No answers yet!!
Shwetha Ram
CA Inter
★ 5K+
0
55
Variable cost
Costing
answered 10 hrs ago
Does variable cost exist in selling and distribution.? For example if it's in the case advertising made on the Bottle, then it such overhwad will be based on no of bottles made right?....
latest answer
It depends on case to cas basis Fixed costs Some selling and distribution expenses, like rent and base salaries, are fixed costs that remain the same regardless of sales or production volumes. Variable costs Other selling and distribution expenses, like distribution costs, are variable costs that change as sales volumes increase or decrease. Semi-variable costs Some selling expenses can be considered semi-variable costs because some components change as sales volumes change, while others remain stable
07- Issac Jolly-XII C
CA Inter
★ 13K+
1
53
Wage/salary payable
Costing
answered 6 hrs ago
In this video. Sir have mentioned that wage payable include statutory employer payment. How does employers statutory payment involves in payable.
latest answer
No sir, my question was does employers contribution will be involved in wage payable
07- Issac Jolly-XII C
CA Inter
★ 13K+
2
56
Abnormal control cost
Costing
asked 14 hrs ago
Even of it's abnormal control, it will still be charged to costing p/l right?... Or is there any other accounting treatment.
latest answer
No answers yet!!
07- Issac Jolly-XII C
CA Inter
★ 13K+
0
52
General Query
Financial Reporting
answered 9 hrs ago
Will rent be considered as lease? Eg: There is a hotel and they have taken ground floor on rent , the asset is identified the period is not fixed as it can be for longer period also, will it be considered as lease. If yes, the won't everything will be on lease. If such is the case, everybody's books of accounts shall have lease liability.
latest answer
No. If renting period covers major part of asset's life, then it will be finace lease. Also, yes, if it's >12 months, then there will be lease liability and ROU asset. But I believe rental agreements are done for 11 months and then they are renewed, whereas lease agreements are done for longer period. So may be that's why entities pass journal entry for rent and not lease.
Hrishikesh Pradhan
CA Final
★ 3K+
5
68
Portfolio Management - Illustration 5
AFM
answered 7 hrs ago
Can we take the return on government bonds for each year as the Risk free rate as we are specifically evaluating the stock for each year? Or does taking the average of risk free rates up to the year of evaluation (i.e., for 2003, average of 6 & 5, for 2004, average of 6, 5 & 4 and for 2005, average of all the four years) appropriate?
latest answer
ok
Vigneshwar M
CA Final
★ 2K+
3
65
Net Working Capital - Bank Overdraft included?
Financial Management
answered 1 day ago
Following information has been provided from the books of M/s Laxmi & Co. for the year ending on 31st March, 2020: Net Working Capital ` 4,80,000 Bank overdraft ` 80,000 Fixed Assets to Proprietary ratio 0.75 Reserves and Surplus ` 3,20,000 Current ratio 2.5 Liquid ratio (Quick Ratio) 1.5 You are required to PREPARE a summarised Balance Sheet as at 31st March, 2020 In the answer (see page 6 of the PDF attached below) they have arrived at Current Liability as 3.2L by using the net working capital figure and current ratio. However, a Bank Overdraft of 80,000 is there, and ICAI material (Page 3.8) has mentioned that in Net Working Capital, Current Liabilities excludes short term bank borrowings, which a bank overdraft is, right? So shouldn't we equate Current Assets - Current Liabilities with Net Working Capital + Bank Borrowings, to adjust for the exclusion?
latest answer
Ok sir, thank you so much!
Vishnu
CA Inter
★ 24K+
2
52
P management
CFA Level I
answered 1 day ago
i understand risk averse investor pls explain what is most-risk averse inv and less-risk averse investor and pls explain optimal portfolio
latest answer
Most risk average means a very safe investor - a very safe investor will not tolerate risk i.e for small risk they want great return - i.e the utility that they require from small risk is very high Utility curves plot satisfaction derived from consumption of something In Portfolio Management if we plot utility curves for SD on x axis and Retrun on Y axis, then people who are more risk averse will have utility curves towards left that is more steep and people who are less risk averse that is are willing to take risk have indiferrence curves towards the right ( look at image attached) Now if utility curve is steep i.e the slope is highest The way to understand it is if eq of a line is y = mx + c Where y is desired return and m is slope, c is intercept and x is sd Then for a given SD, an investor with who is more risk averse i.e who hates risk will want more return so slope will be very high So answer will be c
Dhakshana Dhakshana
CFA L1
★ 18K+
4
89
Offerings
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