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SD is not additive

AFM

answered on 28-May-25 09:53

Hi sir, can you please share, why variance is additive but not SD, SD is only a square root of variance here we are doubling the discounting factors instead why can't we use SD itself for discounting

latest answer

This example may provide clarity on why Variance is additive and SD is not.

priyadharshini priya

priyadharshini priya

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308

Mutual funds

AFM

answered on 28-Sep-24 17:08

Sir, in this question what items you added to get closing NAV

latest answer

yes

Jaswanth Sai

Jaswanth Sai

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3

627

Marked to market

AFM

answered on 28-Sep-24 08:21

In futures chapter illustration 27, how we are getting additional margin amount 9660 and 11340 ?

latest answer

Thank you sir , I just got confused with the way of solving prblm in illustration 14 and 27 . Now clarified

Rahul Kumar

Rahul Kumar

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631

Advanced capital budgeting pdf

AFM

answered on 27-Sep-24 19:15

Where can I get the advanced capital budgeting pdf qns and solutions ..I have the old version book with me .

latest answer

Thank u so much sir

suji Murthy

suji Murthy

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709

WHY DID WE NOT CONSIDERED NUMBER OF RUNS OF PLUS SIGN IN THIS QUESTION

AFM

answered on 27-Sep-24 11:37

Sir, In this Question We Have Taken Number of Runs only as 8 Which is of Minus Sign and Computed 1 SD Away From Mean. Why Didn't we Considered Plus Sign Runs of 11?

latest answer

Pls go through from 4 minutes till 5 min 30 seconds clearly explained what is a run - it is not minus or plus signs, it is about number of similar price movements

baggu mahesh

baggu mahesh

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540

May-24 Exam Sum Mutual Funds

AFM

answered on 27-Sep-24 11:34

Sir in May 24 exam 1b sum They given alternative solution attached below In that why 55000/x is taken??

latest answer

Why divide

Surya Prakash

Surya Prakash

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534

Sensitivity analysis

AFM

answered on 26-Sep-24 11:34

Sir, in this question can we assume 10% adverse variance and do the sum. Will the give marks?. Because in question they specifically asked "such that npv become 0".

latest answer

Ok sir, thank you

Jaswanth Sai

Jaswanth Sai

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500

Hiller'smodel

AFM

answered on 26-Sep-24 07:36

Hiller's model in capital Budgeting is used???

latest answer

ICAI material has this concept with a couple of problems I have not seen it being used anywhere in real life

Surya Prakash

Surya Prakash

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550

ANNUALISED YIELD

AFM

answered on 25-Sep-24 19:45

Sir in this sum, on 31.03.2018 annualised yield is mentioned as 73.52%. Does this 73.52% is the annualised yield for the period of 01.04.2017 to 31.03.2018 or it means from the date of purchase i.e. from 01.07.2015 to 31.03.2018?

latest answer

It says clearly over 30 odd months So the yield is for this entire period @73.52% per annum

Mohanbabu N

Mohanbabu N

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284

Advance ca[pital Budgeting-Illustration 36

AFM

answered on 22-Sep-24 17:53

Sir, I have a confusion why the cumulative present value is being calculated for year 2-5 for the new machine , if considerin g the alternative 2. If the machine is replaced at the end of year 1 and as per question once replaced the new machine will be having a cash flow of 3 years from the replacement so pv shall be calculated for yr 2, 3, 4 right also i didnt gedt the logic behind multiplying the pvf and again dividing forfr EAC

latest answer

We did not compute any EAC here We have computed PV for Year 0-3 separately ( 0 + 1-3) and done one for year 1-4 ( 1 + 2-4) Compared both of them on PV of Day zero terms Kindly let me know if you have not understood - or pls explain your doubt better

Abhinav K A

Abhinav K A

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