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AFM

answered on 02-Sep-24 16:02

Interest rate 10 % not removed

latest answer

Corrected in notes thanks

ezy pan

ezy pan

CA Final

★ 130

2

231

Exponential moving average

AFM

answered on 01-Sep-24 20:37

Sir, Why are we ignoring the days that have no trading in the illustration that you had solved about the exponential moving average ? If there is no trade on a particular day, then Pt will be zero and a*pt will also be zero. But the EMA(t-1)*(1-a) will result in some value. Why are we considered on no trading day the EMAt is equal to EMA(t-1)? Kindly clarify my query sir.

latest answer

No. It does not work that way we will compute moving averages for days on which trading takes place and not otherwise

RAJKUMAR P S

RAJKUMAR P S

CA Final

★ 5K+

1

408

MISTAKE

AFM

answered on 29-Aug-24 15:21

Calculation for the month of March 2009 is not in material.

latest answer

Will get it added. However in mar there is no rebalancing - thanks for highlighting

ezy pan

ezy pan

CA Final

★ 130

1

217

Doubt in MF

AFM

answered on 28-Aug-24 20:18

Sir, in this question, we have already considered 2 as net expenses while calculating closing NAV then why are we again reducing 2 while calculating absolute return Also, while calculating opening NAV, why aren’t we considering that 2 expenses? We have calculated opening a nav on net asset investment 229/4.2 please clarify

latest answer

In part 3, i did not start computation with 415.67, instead i started with 417.67 which is value of all investments from that i am reducing expenses payable and then adding cash If you start with 415.67 no need to add cash & reduce expenses Opening NAV here refers to same opening date value i.e 229 as considered in part 1 & 2. in part 3 we are assuming all the action that is incurring expenses, increase portfolio value etc has happened over 2 years and a dividend has also been paid

kabilan sam

kabilan sam

CA Inter

★ 3K+

1

338

Doubt

AFM

answered on 28-Aug-24 16:02

Why margin call does not equate with the profit, as like in Illustration 14

latest answer

Closing p opening margin account balance adjusted for deposits and withdrawals shows you profit or loss

ezy pan

ezy pan

CA Final

★ 130

2

298

CLERICAL MISTAKE

AFM

answered on 28-Aug-24 14:59

price of the bond at 7% is 104.09

latest answer

Will correct in the notes. Thanks for highlighting

ezy pan

ezy pan

CA Final

★ 130

1

222

ILL29

AFM

answered on 28-Aug-24 10:20

In this ill interest why we calculated. no where in question they mentioned payment of int sir but afc ltd invest to earn 10% only they written . what is the revalance sir

latest answer

When there is a cash buy out, the acquirer loses cash and gains a business. The cash earns some income. We are trying to value merged entity after the cash goes out. the valuation is based on combined EPS. when cash goes out EPS will also reduce as interest income reduces

HEMAVATHYSUBRAMANI SUBRAMANI

HEMAVATHYSUBRAMANI SUBRAMANI

CA Final

★ 3K+

1

249

Stock Split 24(c)(iii)2

AFM

answered on 28-Aug-24 10:26

In that question they said they are splitting 1 into 5 shares which means basically if i have 1 share it will be converted to 5 shares post split, If that's the case the share count after bonus issue was 5.25 lakhs then after split each share will be converted to 5 shares then 5.25L*5=26.25 Shares But you said 105 Lakhs Please Clarify me sir.

latest answer

Split is no 1:5, please question carefully. The provided text is shares are split in FV of Rs.5. Or FV is Rs.100 if you split into FV of 5, then 100 will change to 5 so ratio is 1:20

Antan Judah

Antan Judah

Qualified CA

★ 310

1

275

Telbel Ltd Question

AFM

answered on 27-Aug-24 22:14

Sir why are we adding the NPV of the project in the TERP of the shares. I want to understand the logic behind it.

latest answer

Got it sir, thank you

Prasoon Goel

Prasoon Goel

CA Final

★ 920

2

341

How many nifty futures to be shorted in order to fully hedge your portfolio

AFM

answered on 27-Aug-24 10:38

Sir, please tell me in layman terms how many nifty contacts to be shorted

latest answer

(Portfolio value x portfolio beta) Nifty contracts to be hedged = ------------------------------------ (Nifty futures price x lot size x Nifty Beta) Goal is Beta of nifty x value of Nifty contracts portfolio should be equal to beta of portfolio x portfolio value Beta of Nifty x value of Nifty contracts portfolio = Beta of Nifty x nifty futures price x lot size x No of lots Beta of Nifty is 1

Santoshkumar Kalisetti

Santoshkumar Kalisetti

CA Final

★ 4K+

1

474