Forums
Forex
AFM
answered on 14-Nov-25 14:07
Sir, I have attached the screenshot showing how I understood the question. Please correct me if I am wrong. [Video Time Stamp: 19:42]
latest answer
Yes correct 👍
Murali Thripuraboina
CA Final
★ 3K+
1
205
Additional portfolio
AFM
answered on 13-Nov-25 10:21
Sir, for the amount of portfolio to be brought/given to make beta 0.8 in this question, we can use the same method as done in Illustration 32 (ii) and (iii) right? [Video Time Stamp: 06:37]
latest answer
Yes. Either way answer will be the same
Shreyas Nayak
CA Final
★ 0
1
183
Dependent Variable
AFM
answered on 13-Nov-25 08:32
Sir here Market returns should be considered as (x) independent variable and Company returns should be considered as (y) dependent variable right? Is market always considered dependent variable? [Video Time Stamp: 11:00]
latest answer
Thank you sir
Shreyas Nayak
CA Final
★ 0
2
177
Business Valuation
AFM
answered on 12-Nov-25 20:03
Sir in this question, they have just mentioned revenue without telling before tax Or after tax. We have assumed it as NOPAT. But in earlier questions (ill 34) we have assumed it as PAT when both of the questions contains debt. I just wanted to know, we have assumed as NOPAT here because tax rate was not given in this particular question, If they would've given tax rate, we should assume it as PAT only right.
latest answer
Cleared sir, Thank you
Pradeepa Narayanan
CA Final
★ 5K+
4
182
Expected rate of Return
AFM
answered on 12-Nov-25 19:13
Sir you have calculated in value basis and I have calculated in per share basis. I am getting a different answer than that mentioned in the book. Could you please tell me where I am deviating from your answer?
latest answer
Ok sir thank you.
Shreyas Nayak
CA Final
★ 0
2
206
Computation of Beta of Mutual Funds
AFM
answered on 13-Nov-25 00:00
Sir, in Illustration 66 [regarding D Mutual Fund & K Mutual Fund] (@ 2 hours 35mins), the Beta value that we get from the Treynor Ratio equation is actually the Portfolio Beta [={Weight*Beta(Equity)} + {Weight*Beta(Cash)}]. However, when finding out the value of Equity due to market changes we are directly using the Portfolio Beta. Shouldn't we actually use the Equity Beta for this? For instance, Beta (D Mutual Fund) = 1.50 => 0.99*Beta (Equity) + 0.01*Beta (Cash) = 1.50 => 0.99*Beta (Equity) = 1.50, since Beta (Cash) is nil => Beta (Equity) = 1.515 Original Equity Value = 70.71 * 0.99 = 70.0029 & Original Cash Value = 0.7071 Revised Equity Value = [{1 - (1.515*0.05)} * 70.0029] = 64.700 Revised Portfolio Value = Equity (64.700) + Cash (0.7071) - Expenses (3/12 = 0.25) = 65.1571 [Video Time Stamp: 02:35:18]
latest answer
Ok Sir.
Vignesh Panigrahi
CA Final
★ 1K+
2
196
Options-Nov 2020
AFM
answered on 12-Nov-25 13:19
Sir, This is the question asked for American call option , now i think they have in answer calculated value as per European option, right? Because according to me, answer shall be 7.41, am i right ?
latest answer
American put
Hrishikesh Pradhan
Qualified CA
★ 18K+
4
159
correlation coefficient
AFM
answered on 11-Nov-25 22:19
Sir how did you arrive at r=1? [Video Time Stamp: 05:42]
latest answer
perfect correlation means + 1
Shreyas Nayak
CA Final
★ 0
1
187
Sept 2025 Q1
AFM
answered on 11-Nov-25 22:18
Sir, in sub question 4, i had a query, pls correct me if I am wrong but u think that shouldn't we calculate FCFF as far as I remember EV = FCFF/k-g, so what have we actually done in this question suggested answer
latest answer
ev canbe arrived in many ways from m cap from ebitda using fcff using ev / sales multiple just like price of share can be found using dcf,pe ratio, pb ratio, nav etc
Hrishikesh Pradhan
Qualified CA
★ 18K+
1
183
Market return
AFM
answered on 11-Nov-25 22:16
While calculating percentages for market return why did you add +5, +6 and +7? shouldnt it be +5, +4 and +5? [Video Time Stamp: 09:16]
latest answer
because rest of the data also we took like that only. first yr avg price is taken as opening and hence had to follow same logic
Shreyas Nayak
CA Final
★ 0
1
221