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Efficient Frontier Vs Mean Variance Portfolio
AFM
answered on 12-Apr-26 17:14
Sir, how is the Efficient Frontier differentiated from Mean Variance Portfolio? [Video Time Stamp: 13:47]
latest answer
Yes
SANJITHA
CA Final
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124
Gain loss in case of export import ( Forward market vs theoretical forward rate)
AFM
answered on 12-Apr-26 13:24
Because we are exporter here and if we are receiver of money , if we receive less than ideal forward rate than it is loss for us. and other way in case of importer if we are paying the same then it is good for us. Curx of the story theoretical ( ideal) has direct relationship with exporter gain loss and indirect relation with import.
latest answer
Yes
Vinod Kumawat
CA Final
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105
Premium
AFM
answered on 12-Apr-26 13:30
Sir, in jan 26 exam, the question says lumpsum premium and they haven't mentioned anywhere that premium is paid in installments but still they discounted it with PVIFA. What's the reason sir?
latest answer
ok sir
Nitin Raj
CA Final
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174
Regarding strategy 1
AFM
answered on 12-Apr-26 13:22
How are index futures used to balance the weightage of portfolio? [Video Time Stamp: 03:30]
latest answer
Every Portfolio has a beta Index futures have beta of 1 We have solved problems later on where you will see this. please go through them and then come back if you do not understand
pavan kumar
CA Final
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106
equation values
AFM
answered on 12-Apr-26 13:21
sir,im confused about how you've assigned values to eqn. [Video Time Stamp: 14:12]
latest answer
There are a couple of more questions on this topic. Go through all questions and you will be able to understand the topic
Sahal Shalu
CA Final
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152
CF for end of period
AFM
answered on 11-Apr-26 09:43
Sir, When a bond is mandatorily converted into equity shares at end of its maturity, Will the cashflow at end be the conversion value? [Video Time Stamp: 06:32]
latest answer
No. Con value is MP of share x no of shares into which a bond is converted It has nothing to do with end period cash flow value
SANJITHA
CA Final
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153
Cap Option
AFM
answered on 11-Apr-26 09:33
Suppose as on 31st March LIBOR is 9% (i.e. applicable for June Interest payment ) Now RIL want to limits its interest rate to 8%. Why the bank will agree to compensate 1% as they allready know the LIBOR as on 31st March. Instead bank will not enter into such option agreement. What is the logic behind bank will enter into such option contract even though knowing the LIBOR each other. [Video Time Stamp: 12:35]
latest answer
That is why the cap will not be for immediate payment but from next payment onwards for which libor is unknown
G Chandrakanta
CA Final
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149
Co variance matrix
AFM
answered on 11-Apr-26 09:40
Sir if formula for co variance is (b1)(b2)(variance of market) then for AA, isn't it (0.8)(0.8)(15)^2 [Video Time Stamp: 08:12]
latest answer
Co variance of a stock with itself you don't multiple betas and market variance. it is simply variance of the stock
Nitin Raj
CA Final
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101
Yield as on 30/06/18
AFM
answered on 10-Apr-26 16:33
Sir, we computed PV as on 30/06/2018 by discounting yield % as on 01/03/2018. Don't we need yield as on 30/06/2018. Though it is not provided in question, what is the correct way of doing. [Video Time Stamp: 06:49]
latest answer
no. We assume same Yield is applicable for all future periods from 1/3 till maturity of bond. that is underlying assumption of YTM or IRR
SANJITHA
CA Final
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156
LIBOR and ARR
AFM
answered on 10-Apr-26 09:03
Sir here what it means Secured and Unsecured nature? [Video Time Stamp: 10:49]
latest answer
Yes they are benchmarks You can add spread if a borrowing is secured but bench mark is unsecured
G Chandrakanta
CA Final
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112