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Calculation of hedge ration

Financial Management

answered on 15-Dec-23 10:50

In the question attached hedge ratio is calculated without correlation coefficient value. I am not able to understand how it is calculated.

latest answer

Beta = corr x SD Stock / SD Market How is correlation relevant here Beta is sensitivity of a stock price to change in index This is a simplified kind of question in which hedge ratio is computed taking into account sensitivity of a stock If portfolio beta is 0.8 for a change of 10% in Index the portfolio value changes by 8% so for hedging a portfolio of 50 lacs we need to invest in index for value of 0.8 x 50 lacs = 40 lacs if index value if 6840 and each contract is 100 contracts then no of contracts req of sensex = 40 lacs / ( 6840 x 100) = 5.85 contracts

swaminathan sundaram

swaminathan sundaram

CA Final

110

1

431

FEMA

Corporate & Other Laws

answered on 14-Dec-23 20:48

In case of exemptions to the limit of LRS to whom we have to produce the necessary documents to remit in excess ? Video Details Course: Corporate and Other Laws Module: Foreign Exchange Management Act - CA Inter Section: Schedule III- Current account transactions that requires RBI approval

latest answer

through bank ( i.e Authorized Dealer) to RBI

HariPriya C

HariPriya C

CA Final

3K+

1

406

FINANCIAL DECISION -COST OF CAPITAL

Financial Management

answered on 14-Dec-23 22:09

is any present value of annuity factor table mention in question paper ? how will find PVAF EXCTALY RATE ?? Video Details Course: Financial Management Module: Cost of Capital Section: IRR - Computation - II

latest answer

Okay thank you

Mallanagowda S

Mallanagowda S

CA Inter

260

3

433

Charge RCM

Indirect Taxation

answered on 15-Dec-23 16:54

Previously along with post there was agency and insurance service added too Is it amended ? Now what would b the tax effect on insurance n agency service

latest answer

I was just following the mat..didn’t think it this way Thanks for conceptual clarity :)

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

17

534

income from business

Direct Taxation

answered on 18-Dec-23 07:37

sir,how we can differentiate GST and income from business? if income from business is taxed under income tax,what is the purpose of GST ? do they coincide? Video Details Course: P3A - Income Tax (New) Module: Basic Concepts (N) Section: Opting in / Opting Out

latest answer

GST is never paid from own pocket since it is indirect tax. The tax burden is shifted to the consumer

Sajitha Anna Daniel

Sajitha Anna Daniel

CA Inter

210

5

428

SPOM

Others

answered on 14-Dec-23 11:39

Is there video lectures available for spom

latest answer

Not currently

Geo PB

Geo PB

CA Final

420

1

383

Exam applications for direct entry

Others

answered on 15-Dec-23 20:24

I have terminated article-ship within 1 year.Since I am a direct entry student appearing inter exam in May2024 should I register as article assistant under any auditor? Or is it enough to get sign from any auditors in exam application

latest answer

Thank you sir

Malaviga Manoj

Malaviga Manoj

CA Inter

5

4

371

Equation

Maths & Stats

answered on 14-Dec-23 10:49

Can any one help me to solve this Question and can explain to me!

latest answer

Option-d

Karan Vadera

Karan Vadera

CA Foundation

0

1

442

RTP dec. 23

Exams

answered on 14-Dec-23 10:01

Sir kindly update the latest RTPs and MTPs for December 2023 attempt..

latest answer

okay

Bhavesh Kumar

Bhavesh Kumar

CA Foundation

425

1

431

BEST CA COACHING FOR FACE-FACE IN CHENNAI

Others

answered on 14-Dec-23 13:11

What are the best coaching classes for Intermediate for Face-Face in Chennai( Cost/Faculty wise also)

latest answer

💯correct bro😅

Sr the Unique

Sr the Unique

CA Inter

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