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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
CA Final
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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
CA Final
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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
Qualified CA
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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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Security Valuation
AFM
answered on 22-Mar-23 22:28
Sir how did you find out Buy back value in the illustration 16 .. Pls explain sir..
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Answer found.. 😇
Manoj Raj
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Derivatives-options
AFM
answered on 23-Mar-23 11:16
Can I calculate option price using this formulae at origin 👇
latest answer
Yes absolutely. we have used that way only in our problems. Do go through American call option problems where this has been discussed
Srikanth Srimath Tirumala Peddinti
CA Final
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Natural log
AFM
answered on 21-Mar-23 11:33
Chapter options Illustration 21. In calculating natural log with calculator- what is this 0.000244172 is this some standard number? If not how do we get this
latest answer
Okay sir... Thankyou
nazriya nasar
CA Final
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Valuation of equity chapter
AFM
answered on 13-Mar-23 05:16
In illustration 13, Mr.A Can we write and assumption that, as 1 share held is not eligible for bonus and calculate everything for each year for 1 share instead of 1.2 share?
latest answer
NO ,the correct interpretation of the question is that for every 5 existing shares held in the company, a shareholder is entitled to receive 1 additional share. This entitlement is not limited to shareholders who hold 5 existing shares or multiples of 5 existing shares. Rather, every shareholder who holds any number of existing shares is entitled to receive 1 additional share for every 5 existing shares held. Therefore, assuming that Mr. X holds 0.2 Bous shares for every 1 share in the company (i.e., 1/5 of a share). by the way In US stock market we can invest in fractional shares also.
Lalit Sanpal
CA Final
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