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Margin

AFM

answered on 13-Apr-26 06:06

Sir, i understand when to add or deduct margin, but I can't understand where to use buying rate and selling rate. Can you explain [Video Time Stamp: 00:57]

latest answer

Yes

Nitin Raj

Nitin Raj

CA Final

270

3

26

Q

AFM

answered on 12-Apr-26 18:22

Sir, the formula for co-efficient of variance is (S.D/ CF'S).Then in this q, why is NPV considered as the denominator? [Video Time Stamp: 05:09]

latest answer

Here cf refers to mean cash flow which is expected npv Actual formula is sd / mean In adv cap budgeting mean refers to mean cash flows

SANSKRITI BADRI 2111339

SANSKRITI BADRI 2111339

CA Final

4K+

1

31

Efficient Frontier Vs Mean Variance Portfolio

AFM

answered on 12-Apr-26 17:14

Sir, how is the Efficient Frontier differentiated from Mean Variance Portfolio? [Video Time Stamp: 13:47]

latest answer

Yes

SANJITHA

CA Final

55

3

36

Gain loss in case of export import ( Forward market vs theoretical forward rate)

AFM

answered on 12-Apr-26 13:24

Because we are exporter here and if we are receiver of money , if we receive less than ideal forward rate than it is loss for us. and other way in case of importer if we are paying the same then it is good for us. Curx of the story theoretical ( ideal) has direct relationship with exporter gain loss and indirect relation with import.

latest answer

Yes

Vinod Kumawat

Vinod Kumawat

CA Final

1K+

1

45

Premium

AFM

answered on 12-Apr-26 13:30

Sir, in jan 26 exam, the question says lumpsum premium and they haven't mentioned anywhere that premium is paid in installments but still they discounted it with PVIFA. What's the reason sir?

latest answer

ok sir

Nitin Raj

Nitin Raj

CA Final

270

2

36

Regarding strategy 1

AFM

answered on 12-Apr-26 13:22

How are index futures used to balance the weightage of portfolio? [Video Time Stamp: 03:30]

latest answer

Every Portfolio has a beta Index futures have beta of 1 We have solved problems later on where you will see this. please go through them and then come back if you do not understand

pavan kumar

pavan kumar

CA Final

2K+

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37

equation values

AFM

answered on 12-Apr-26 13:21

sir,im confused about how you've assigned values to eqn. [Video Time Stamp: 14:12]

latest answer

There are a couple of more questions on this topic. Go through all questions and you will be able to understand the topic

Sahal Shalu

Sahal Shalu

CA Final

0

2

31

CF for end of period

AFM

answered on 11-Apr-26 09:43

Sir, When a bond is mandatorily converted into equity shares at end of its maturity, Will the cashflow at end be the conversion value? [Video Time Stamp: 06:32]

latest answer

No. Con value is MP of share x no of shares into which a bond is converted It has nothing to do with end period cash flow value

SANJITHA

CA Final

55

1

37

Cap Option

AFM

answered on 11-Apr-26 09:33

Suppose as on 31st March LIBOR is 9% (i.e. applicable for June Interest payment ) Now RIL want to limits its interest rate to 8%. Why the bank will agree to compensate 1% as they allready know the LIBOR as on 31st March. Instead bank will not enter into such option agreement. What is the logic behind bank will enter into such option contract even though knowing the LIBOR each other. [Video Time Stamp: 12:35]

latest answer

That is why the cap will not be for immediate payment but from next payment onwards for which libor is unknown

G Chandrakanta

G Chandrakanta

CA Final

15K+

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28

Co variance matrix

AFM

answered on 11-Apr-26 09:40

Sir if formula for co variance is (b1)(b2)(variance of market) then for AA, isn't it (0.8)(0.8)(15)^2 [Video Time Stamp: 08:12]

latest answer

Co variance of a stock with itself you don't multiple betas and market variance. it is simply variance of the stock

Nitin Raj

Nitin Raj

CA Final

270

1

33