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Covariance formula in case of Probability
AFM
answered on 24-Feb-26 21:19
Sir, what if there given 2 different sets of probability for Security F & Market portfolio P - in such case how will the covariance formula changes? [Video Time Stamp: 00:24]
latest answer
Such kind of problems have not been asked in ICAI
Swathi S
CA Final
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190
CAPM Vs. Expected return
AFM
answered on 23-Feb-26 18:41
What is the difference between CAPM return and Expected return. How it is related? How to make decision based on this? sir [Video Time Stamp: 01:46]
latest answer
CAPM
Swathi S
CA Final
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97
CAPM Vs. Projected return
AFM
answered on 23-Feb-26 18:42
Dear Sir, I couldn't understand the logic behind this : CAPM < Projected return --- Undervalued - so buy.
latest answer
Capm
Swathi S
CA Final
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123
Portfolio beta 2nd part
AFM
answered on 24-Feb-26 21:20
If the share price drops by 3.2% , then the portfolio value also changes to 82.28 lakh?? Why equity portfolio value is taken as 85 lakh? [Video Time Stamp: 13:10]
latest answer
We took org as 85 and rev as 82.28
Sugathan P.R
CA Final
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117
Illustration 78, 72, 53, 73
AFM
answered on 18-Feb-26 16:48
Time stamp 39.14... Duration Formula is Sum of (pvcf*t) / sum of all pvci then why have take po in denominator? [Video Time Stamp: 39:12]
latest answer
Duration formula is Sum of (PVF x t x CF )/ Price of bond at time zero Price of a bond at time zero = p0 = PV of cash inflows
Janarthanan S
CA Final
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122
EAC
AFM
answered on 16-Feb-26 21:05
Sir, you have mentioned that the equalized cost of the machine in the year of purchase is considered in place of considering cashflows for all 8 years. What is the logic behind taking this way Sir? [Video Time Stamp: 11:19]
latest answer
It is used to compare costs a their PV but with different time periods How can one compare cash flows like below with just NPV Machine 1 5 years of expenses 10K 20K 30K 10K 40K Machine 2 3 years 15 K 24K 17K EAC is the right way to measure these tow CF of unequal time periods
SANJITHA
CA Final
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142
NPV
AFM
answered on 14-Feb-26 14:30
Though we only have cash outflows in this case, can we calculate NPV for both machines and conclude based on the same. Best to choose the one with less negative value.
latest answer
This question is in context of EAC. In exam they will specify what they want u to use
SANJITHA
CA Final
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192
Valuation of Bonds
AFM
answered on 14-Feb-26 07:36
Q.no 17 - in this the coupon rate is 14% which is paid half yearly. but for YTM calculation, we considered yearly cashflows of Rs.7 (100*7%) which is for half a year but in actuality my cashflow will be 14 Rs./year.can you pls explain this sir
latest answer
Thank you sir for clarifying i didn't see it properly.
Divakar P
CA Final
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173
Cumulative probability
AFM
answered on 13-Feb-26 15:21
Why do we need to cumulate the probability for succeeding values or years? The probability provided for a specific value already factored in the probability of achieving the previous value, like Probability of life being 3 yrs - 0.05 and Probability for 4 yrs - 0.10. this 0.10 also includes the probability of crossing 3 yrs.
latest answer
Probability
SANJITHA
CA Final
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148
Fixes cost - Depreciation
AFM
answered on 13-Feb-26 08:44
When the question is silent about Fixed cost, should be need to consider depreciation as fixed cost by the details provided such as Cost of new machine = 50L, Useful life = 5 yrs and Depreciation = 10L? [Video Time Stamp: 07:16]
latest answer
No derivation has to be treated differently. It is not to be treated like any other fixed cost
SANJITHA
CA Final
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136