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Portfolio Management - Illustration 7
AFM
answered on 19-Apr-23 07:33
Hello Sir, In the Illustration 7, we are comparing the return as per CAPM and Expected return, but isnt the return as per CAPM is the expected return. Should we compare the CAPM return with the market return to decide on the investment?
latest answer
Think of it as Theoretical vs. Estimated
Suresh Avinash
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forex
AFM
answered on 18-Apr-23 17:13
illustration 39 sub question i , sir why are we comparing estimated rate with current spot? anyway amount is receivable on 31st aug...so whats the point in comparing spot rate and estimate on 31st aug? comparison should be between estimate and forward arte quoted right?
latest answer
Because in one scenario we are comparing a scenario where no hedging is done - if hedging is not done forward rate is not relevant right?
nazriya nasar
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forex
AFM
answered on 17-Apr-23 13:04
illustration 33 question says bank has surplus fund of 7 lak...so what does this "cost of fund to bank is 6%" meant?
latest answer
Okay sir.. Its clear.. Thankyou
nazriya nasar
CA Final
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AFM
answered on 17-Apr-23 13:05
illustration 30 at 12.17minute sir why are we multiplying 1st 3 month rate to next 3 month rate? we have add it right?
latest answer
Okay. Sir clear... Thankyou
nazriya nasar
CA Final
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Derivatives
AFM
answered on 15-Apr-23 11:40
1) In illustration 12, current beta of portfolio is 1.3, required beta is 0.91, market beta is 1 hence we shorted nifty fut, i understood that. But if required beta is suppose 1.2 instead of 0.91, so can we go long and average the beta to 1.2? And in this case, can do we have an alternative to either short or long as beta can come down to 1.2 in both case? 2) In case we go long, then while computing, in the denominator, should we take value of contract too in addition to value of share portfolio, as while going long we have to pay the full amount. Like in short position, we only take returns in numerator but not take value of contract in denominator, So, while going long, should we take it in both numerator as well as denominator?
latest answer
Understood sir, Thanks.
Lalit Sanpal
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SFM - portfolio management
AFM
answered on 14-Apr-23 10:42
Sir, here what formula they applied, for Beta it's correlation of security with market multiplied by variance of security/ variance of market right
latest answer
Right solution - explained in class
Gandlapati Hari Reddi
Qualified CA
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Forex
AFM
answered on 17-Apr-23 14:50
Indigo learn example 26 Sir i did the problem without looking into the solution Actual forward rate 0.780 i got theoretical forward rate as 0.7832 so i concluded since theoretical is higher than actual arbitrage strategy should be to buy forward but when i looked into the solution sir took only 3 decimal and got 0.779 as answer hence entire answer changed, even if the difference is minute the entire answer changed. how to take care of these kind of situations?
latest answer
Ok be careful
nazriya nasar
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SFM
AFM
answered on 11-Apr-23 20:36
Sir, can i take Derivatives (Options) and Entire Forex for choice
latest answer
Shared from *1FIN by Indigolearn* CA_Final_SFM_Past Exam_Analysis_1FIN https://1fin.page.link/nt14i6omuoXVJAW7A These are high weightage chapters
Gandlapati Hari Reddi
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Mutual Funds Illustration 14
AFM
answered on 08-Apr-23 10:11
In scheme 1 of the Illustration 14, while computing stcg, why did we reduce nav value as on date of dividend, shouldn't we compute stcg as full value i.e. 53.75(nav on redemption date) × 1144.43(units allotted)
latest answer
Understood sir, Thank you:)
Lalit Sanpal
CA Final
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validity
AFM
answered on 05-Apr-23 22:53
i have enrolled for may 23 class.till which date classes will be availablr?
latest answer
Okay. Thankyou
nazriya nasar
CA Final
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