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answered on 13-Oct-24 07:09
Why it is coming as unable to establish secure connection and please update android app or reset network settings and try again? Like this it is showing
latest answer
OK sir
Miradevi S
CA Final
★ 16K+
2
547
Serial Correlation or Auto Correlation
AFM
answered on 13-Oct-24 06:39
Let me know if I am right with my understanding >Low Correlation = its Effiecient market = "Level 1" of market efficency which is weak form of efficiencny >High Correlation = its ineffiecient market = which is "not even Level 1", so it will not come under weak form of efficiency or No weak form of efficiency Basically whether its comes under level 1 or Not is what i understand which we achieve from Run test, Just I got confused for the words weak and Not weak, where Not weakly effieciency is being confused as effiecient (that Not = Minus, Weak = Minus, Minus*Minus = +, so its efficient market), which is wrong understanding due to wrong way of reading So i guess "Weak form of effiecient" should be read as Level 1
latest answer
Efficiency
Hemachandra D
CA Final
★ 9K+
1
385
illustration 13
AFM
answered on 13-Oct-24 07:18
Sir why are we not taking short term loans and provisions as current liabilities?Also can we take that as the sales has been increased by 20% , every other items are also increased by 20%. The explanation provided was unable to for me to understand.
latest answer
In real life financial projections also wc items are taken as % of sales - ie assumption being that receivable & payable days will remain the same Why not consider any increase in ST loans & Provision? - They have specifically provided ratio of sales to ST loans & Prov & we have to stick to that Now why consider all increase in Prov & none in ST loans provisions will inc in line with WC but ST loans will be a balancing figure considering other constrains of Ratio of Sales to ST Loans & Prov as well as D:E ratio
S Shriram
CA Final
★ 0
1
219
derivatives
CFA
answered on 13-Oct-24 06:38
Long futures contracts may be preferred to equivalent forward contracts without central clearing when interest rates are: A) positively correlated with the price of the underlying. Correct Answer B) negatively correlated with the price of the underlying. Incorrect Answer C) uncorrelated with the price of the underlying. Pls explain how this positive and negative correlation affects the choice between fwd and futures contract i could not understand
latest answer
Fwd futures
Dhakshana Dhakshana
CFA L2
★ 18K+
1
648
Regarding undervalued
AFM
answered on 13-Oct-24 06:42
Sir, how to find whether the stock is undervalued or overvalued?
latest answer
Undervalued assets
S Shriram
CA Final
★ 0
1
222
Replication strategies
CFA
answered on 12-Oct-24 19:18
If Procam is entering to buy the gold at a future date, how can it sell in between after borrowing the amount of the current spot at the risk free rate ?
latest answer
There are arbitrage strategies If forward is mispriced say higher than ideal price then sell forward and buy spot. To buy spot borrow If forward is cheaper that theoretical price then buy toward. To fund that short sell spot and put it in deposit. When deposit matures use that money to execute forward transaction and once u get gold from forward use that to close good short sold in spot initially These are called cash and carry & reverse cash and carry arbitrage transactions
Vasudha TK
CFA L1
★ 70
1
172
Replication and Arbitrage
CFA
answered on 12-Oct-24 19:14
I did not understand the concept of replication a long or short position
latest answer
We are creating a portfolio using stock and bonds that give same payoff as a long forward or a short forward You have to be specific what u did not understand Pls go through the Kaplan notes and elaborate exact query and I shall be able to help you
Vasudha TK
CFA L1
★ 70
1
153
Derivatives
CFA
answered on 12-Oct-24 19:19
Case 1 : I'm borrowing 1M $ for 6M @ MRR,3M from now Case2: I'm borrowing 1M$ for 6M @ fixed rate, 3M from now To hedge intrest rate risk in both the case can I enter an FRA ad a fixed rate payer???
latest answer
FRA
Dhakshana Dhakshana
CFA L2
★ 18K+
1
523
PGBP
Direct Taxation
answered on 13-Oct-24 19:25
are companies allowed to declare presumptive income under section 44AD/44ADA
latest answer
No. It is only for resident Individual, HUF and Firm. Not even LLP.
Niveta Rajkumar
CA Inter
★ 6K+
2
538
composition scheme
Indirect Taxation
answered on 13-Oct-24 19:25
Sir can a newly incorporated business can opt for composition scheme, as it does not have any turnover in past.
latest answer
Yes it can.
Divakar Gedala
CA Final
★ 0
1
183