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Securitization
AFM
answered on 15-Feb-23 08:56
What is meant by Skewness of cash flow, ("Skewness of the cash flows occurs in the early stage if principals are repaid before the Scheduled time - Pass Through Certificates") ?
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Thanks for your time
Chandu vadla
CA Final
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Security valuation
AFM
answered on 14-Feb-23 23:20
Can anyone plz tell me In part (ii) 1) st fund me sales 600 liya ( without growth) 2) lt me after growth asset liya Dono me after growth hi aana chahiye na as we are finding for next year?? EFR( security valuation -sfm)
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Ohk thanks a lot
DRASHTI DHANESHA
CA Final
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Covariance Matrix
AFM
answered on 14-Feb-23 09:57
Can anyone explain how the values are computed in this Matrix ?
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Total risk of portfolio Jaise 2 ka krta hai vaha 3 ka Wa2*sigma2a + wb2*sigma b2 ... Weight 1/3 leke + cov(a,b) matrix me jo aya vo directly put krke Ans na aae to batana will send u full ans Hope u understand
Chandu vadla
CA Final
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706
Security Valuation - Bonds
AFM
answered on 13-Feb-23 00:12
Illustration 11 - Pet feed plc Sir, in the second sub division of this question, I don't understand why we are including the PV of 10000 in the sixth year end, when we don't receive it. Shouldn't we discount the coupon of 1000 for the extended period of 12 years and the FV of 10000 at the 12th year end... and then find the loss??
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"At the end of the 6th year, the present value of future cash flows for the next 6 years was estimated to be 10923 euros at an 8% discount rate. However, if interest rates were to increase, Pet Feed PLC would benefit as their coupon rate is 10% and the market interest rate would be 12%. This would result in a decrease in the bond's value, meaning that at the end of the 6th year, an investment of 10000 euros would earn 12% interest annually. By the end of the 12th year, the investment would be worth 10000 euros, so the present value of annuity for future (PVIAF) and present value of future (PVIF) would total 9181 euros. This would result in a potential loss of 1742 euros, which is the difference between the PV of future cash flows at the end of the 6th year (10923 euros) and the new estimated value (9181 euros). However, the actual loss would be 819 euros, as the investment of 10000 euros would only be worth 9181 euros."
Varshini Pandiarajan
CA Final
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Portfolio Management
AFM
answered on 12-Feb-23 17:52
What is "Alpha" in measurement of Systematic risk in portfolio management ? Please let me know what is the conceptual aspect for that..
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Understood.... Thank you
Chandu vadla
CA Final
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Portfolio
AFM
answered on 09-Feb-23 12:12
Can anyone plz solve this que 3b- may 22 exam que Mera icai seh ans match nhi ho rha beta ka Please send solution
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Ok thank you so much
DRASHTI DHANESHA
CA Final
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Portfolio management
AFM
answered on 08-Feb-23 14:11
Illustration 50,video 79 Sir we have used beta of window ac of abc ltd to find beta of other company. Actually can we do so? Isn't beta company specific?
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Okay sir
nazriya nasar
CA Final
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605
Forward Contract - Foreign Exchange Exposure Chapter
AFM
answered on 07-Feb-23 06:02
In Forward contracts (incase of Imports), buyers are obliged to excute contract on maturity date. [Only in Options, the buyer has option to cancel the contract] Then, how come buyer can cancel the forward contract before maturity? ( Topic covered under Fates of Forward Contract heading)
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Understood.. Thank you!
Aswath Natarajan
CA Final
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719
Portfolio management
AFM
answered on 06-Feb-23 12:05
If capm is greater than the expected return the security is overvaluedâ?¦ How does that make sense because if the security return is less than what capm would predict, it means that it Is undervalued and has not yet reached itâ??s full potential.
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CAPM is ideal return. Expected return means return that the security is expected to give Now if a security is giving you less than ideal return the security should trade at a lower price than ideal that means overvalued
nazriya nasar
CA Final
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550
Portfolio management
AFM
answered on 06-Feb-23 20:49
Video 73, illustration 44,@ 9.00 minute Didn't understand what formula is used to compute growth rate or how it is computed.kindly help
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clear sir, thank you
nazriya nasar
CA Final
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