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Doubt
AFM
answered on 21-Jul-26 20:44
For Macaulay duration we have to use yield to maturity or yield or realized yield.explain [Video Time Stamp: 15:10]
latest answer
YTM and yield are same as IRR and this has to be used
pavan kumar
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illustration 29
AFM
answered on 21-Jul-26 15:29
Sir in second part they have asked " what is the amount of copper future it should short to achieve a perfect hedge if initial margin is 8%" . But we have found the initial margin alone. Is both the answers are same... am i misunderstanding the question?
latest answer
5 mt short explained at 6.18 minutes
Balavignesh
CA Final
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55
Doubt
AFM
answered on 21-Jul-26 11:28
Sir here we find present value for 6th year by taking 12%.but for calculation of gain or loss we have to compare by further discounting to Y0.
latest answer
Part 2 talks abt situation after 6 year We are not asked to compute the gain loss on day zero
pavan kumar
CA Final
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41
Illus 52
AFM
answered on 21-Jul-26 11:07
Sir generally we don't consider weights for CAPM, why do we multiply the CAPM with weight. If necessary how do we identify when to multiply with the weights. [Video Time Stamp: 11:33]
latest answer
Weather you take average of beta or average of returns you will get same answer Pls try and see
Bharathkumar Sivakumar
CA Final
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Doubt
AFM
answered on 20-Jul-26 16:12
Sir I am confused by the words of pre tax values and post tax values.please explain sir? [Video Time Stamp: 05:26]
latest answer
If all Inflows ie interest and principal redemption are adjusted for tax the. Next of tax is known as post tax We are computing irr or YTM for that net of tax value
pavan kumar
CA Final
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REGARDING EXPECTED RETURN
AFM
answered on 18-Jul-26 21:38
Sir, in the previous illustration We have calculated Return (%) for absolute return and using this return (%) and probability we have calculated Expected return.. But in this illustration we have directly taken Absolute return and probability for calculating the expected return.. Is it Ok if we calculated expected return in previous illustration with absolute return and probability instead of calculating the Return (%) [Video Time Stamp: 11:42]
latest answer
You will get same answer It is fine
Lokesh Reddy
CA Final
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Portfolio postioining
AFM
answered on 17-Jul-26 16:53
in this question we are in phase 3 now ( distribution ) so in future there will be down (dip) so we need for that , so we will sell now and invest in low risk portfolio and hold cash if not able to determine.? if they ask for phase 2 then what should we do.? [Video Time Stamp: 01:15:50]
latest answer
For phase 2 you should say wait for peak to sell and don’t buy afresh
Vinod Kumawat
CA Final
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48
Derivatives Options
AFM
answered on 16-Jul-26 15:54
Sir, in Qn 8 we have already given probabilities of 60% and 40%. why we again calculate probability [Video Time Stamp: 25:37]
latest answer
The probabilities are probabilities of the investor, they are not risk neutral probabilities. Just like in PM chapter CAPM is ideal and actual is something else same way Risk neutral is per formula and 60 , 40 are those of the investor
AGALYA KANNAN
CA Final
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45
Dividend not reinvested
AFM
answered on 16-Jul-26 22:30
Sir, Doubt 1: While explaining this assumption, you have taken dividend for 31-mar-16 as 16720(10*15%*11147.09 units)... but since we are not reinvesting the dividend , the number of units will remain constant right? so dividend has to be 10*15%*10869.57 units = 16304. Doubt 2: sir whether this sum can be solved by calculating yield for each year... like (dividend for y1+CG for Y1)/opening value for y1... similarly for 5 years and average it to get Return p.a%? [Video Time Stamp: 04:42]
latest answer
ok sir thank you
Balavignesh
CA Final
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44
Doubt
AFM
answered on 15-Jul-26 17:10
Why are we dividing with price instead of avg price.
latest answer
That is the formula Goal is to find out weighted average period Of u have already multiplied with weights in the numerator. Here, weights mean present value factor into time, then you don’t take any average in the denominator denominator is simply the price.
pavan kumar
CA Final
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