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Computation of Beta of Mutual Funds
AFM
answered on 13-Nov-25 00:00
Sir, in Illustration 66 [regarding D Mutual Fund & K Mutual Fund] (@ 2 hours 35mins), the Beta value that we get from the Treynor Ratio equation is actually the Portfolio Beta [={Weight*Beta(Equity)} + {Weight*Beta(Cash)}]. However, when finding out the value of Equity due to market changes we are directly using the Portfolio Beta. Shouldn't we actually use the Equity Beta for this? For instance, Beta (D Mutual Fund) = 1.50 => 0.99*Beta (Equity) + 0.01*Beta (Cash) = 1.50 => 0.99*Beta (Equity) = 1.50, since Beta (Cash) is nil => Beta (Equity) = 1.515 Original Equity Value = 70.71 * 0.99 = 70.0029 & Original Cash Value = 0.7071 Revised Equity Value = [{1 - (1.515*0.05)} * 70.0029] = 64.700 Revised Portfolio Value = Equity (64.700) + Cash (0.7071) - Expenses (3/12 = 0.25) = 65.1571 [Video Time Stamp: 02:35:18]
latest answer
Ok Sir.
Vignesh Panigrahi
CA Final
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196
Capital Advance: Long Term in nature?
Auditing
answered on 17-Nov-25 10:25
Mam, you said capital advance is something like a loans & Advance given to a party for their capital investment, is likely in nature of long term. BUT What if the amount so paid is recoverable within 12 months as per the agreement? will it still be treated as long term in nature? [Video Time Stamp: 03:18]
latest answer
Yes this format is expected and its rather a correct flow of thoughts ! We first understand question , relate to provision and then conclude. That’s the idea
Vinod Kumar
CA Inter
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313
Question bank
Financial Reporting
answered on 12-Nov-25 10:37
Sir does the question bank given by 1FIN is enough for FR or do i need to refer any other questions?
latest answer
Enough. You can refer to latest exam solutions and RTPs which I discuss on YouTube.
sabarish s
CA Final
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163
Options-Nov 2020
AFM
answered on 12-Nov-25 13:19
Sir, This is the question asked for American call option , now i think they have in answer calculated value as per European option, right? Because according to me, answer shall be 7.41, am i right ?
latest answer
American put
Hrishikesh Pradhan
Qualified CA
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4
159
correlation coefficient
AFM
answered on 11-Nov-25 22:19
Sir how did you arrive at r=1? [Video Time Stamp: 05:42]
latest answer
perfect correlation means + 1
Shreyas Nayak
CA Final
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1
187
Sept 2025 Q1
AFM
answered on 11-Nov-25 22:18
Sir, in sub question 4, i had a query, pls correct me if I am wrong but u think that shouldn't we calculate FCFF as far as I remember EV = FCFF/k-g, so what have we actually done in this question suggested answer
latest answer
ev canbe arrived in many ways from m cap from ebitda using fcff using ev / sales multiple just like price of share can be found using dcf,pe ratio, pb ratio, nav etc
Hrishikesh Pradhan
Qualified CA
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1
183
Market return
AFM
answered on 11-Nov-25 22:16
While calculating percentages for market return why did you add +5, +6 and +7? shouldnt it be +5, +4 and +5? [Video Time Stamp: 09:16]
latest answer
because rest of the data also we took like that only. first yr avg price is taken as opening and hence had to follow same logic
Shreyas Nayak
CA Final
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221
Learning Technique : 100% correct
Auditing
answered on 19-Sep-26 20:12
This technique of learninig is what i most commonly use. Remembering something about what i can memorise and what i will forget and giving more emphasis on what i will forget. By this way, i keep both the memory integrated inside my brain. [Video Time Stamp: 03:30]
latest answer
You need preparation strategy??
Vinod Kumar
CA Inter
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2
235
Dependent Variable and Independent Variable
AFM
answered on 11-Nov-25 13:28
Hello sir, as you mentioned earlier ICICI's stock is considered a dependent variable and NIFTY is considered independent. You also said that NIFTY represents top 50 stocks in the country. So if any change occurs in any of the 50 stocks, the NIFTY index will change according to that right. So in that sense, NIFTY variables would be a dependent variable and ICICI stock would be independent variable right?
latest answer
ok sir. Thank you
Shreyas Nayak
CA Final
★ 0
2
202
Final Dividend
Accountancy
answered on 11-Nov-25 09:30
In this sum there is no outstanding shares (previous year) given. But we are taking 5000 as outstanding shares but which is purchased in current year only (15/04/x1) for calculation of final Dividend. How?
latest answer
You get dividend even if purchased in current year. There is no requirement to buy in last year
Priya Ravi
CA Inter
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1
245