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Percentage of downside risk formula
AFM
answered on 04-Apr-26 17:26
Sir, just to confirm — if the question asks us to find the below, is the formula used is correct?" 1. Percentage of downside risk = (MP of convertible bond-Straight value of bond)/ MP of convertible bond (ill-43) 2.Premium over Straight value of bond = (MP of convertible bond-Straight value of bond)/Straight value of bond. (mentioed in ill-29) [Video Time Stamp: 04:30]
latest answer
I agree with you. What I wanted to say above did not come out clearly. When you call something downside risk, denominator has to be higher value and when you say premium it has to be lower value. Pls check Q no 24 of icai SM link below and screenshot of ICAI solution also attached. I was referring to Ill 24 where question says downside risk. so anchor has to be higher amount - but they provided solution with denominator as higher amount - this is what I was alluding to as ICAI Logic This kind of dichotomy is present in past RTP/ SA/ MTP too. https://resource.cdn.icai.org/87846bos-aps2163-ch5.pdf page 66 of 72
Shinisha Rose R
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Optimal portfolio
AFM
answered on 17-Aug-25 12:40
Hi sir, In the previous problem, i.e, in the 67 problem, you said we use actual returns for the computation of sharpe formulae. Why we are doing all computions here for finding ER [Video Time Stamp: 24:54]
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Ok sir tq for reply.
sailusha ravikrindi
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e^rt
AFM
answered on 14-Aug-25 12:49
Sir, instead of days, i took months in 't' for calculation and got the same answer. Which is preferable if nothing is specified in question about days? [Video Time Stamp: 11:01]
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E power rt
Banu Priya
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Conversion Premium %
AFM
answered on 13-Aug-25 20:18
Sir ,in exam which of the below formula should be used to derive the Conversion Premium %, In ill-23 you mentioned both are correct. 1.Conversion Premium %= (Market Price of Debenture−Conversion Value)/Conversion Value. 2 Conversion Premium %= (Market Price of Debenture−Conversion Value)/Market Price of Debenture.
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Denominator is lower value Conversion value
Shinisha Rose R
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gold etfs vs online gold
AFM
answered on 12-Aug-25 19:00
sir gold etfs take 2-3 days for redemption but online gold can be redeemed with in hours. then online gold is more preferable?
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etf works on stadard T+ 2 settlement - there is no gst on investment in it Online gold faces GST
KIRAN BANKAPALLI
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Corporate valuation
AFM
answered on 10-Aug-25 11:18
Here no risk premium rate for Dividend and Capital Gearing, then why we add 0.5 both in normal return??
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Ok sir
Aditi Goel
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Query
AFM
answered on 10-Aug-25 09:41
Simple and quick way to understand interpolation
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Yes
Akash Nanda
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NAV
AFM
answered on 08-Aug-25 15:46
Time stamp: 6.35 Sir, Can you please clarify the following? My understanding is that when a dividend is declared but not paid, its value is reflected in the share's market price, which then falls after the dividend is paid. If the market value of the investment already accounts for the dividend, why is a separate adjustment for 'dividend receivable' necessary? [Video Time Stamp: 05:31]
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Yes
Chaitanya Sai Gupta
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Replacement decision
AFM
answered on 08-Aug-25 10:58
Sir ca we solve q22 and q27 by same method as used in q26 in study material capital budgeting decision regarding replacement decision
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Ok sir thanks a lot
Akshat Sharma
CA Final
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e^rt on a calculator
AFM
answered on 06-Aug-25 21:58
How to calculate e^rt on a calculator [Video Time Stamp: 02:02]
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Thank you 🙏🙏🙏!!!
Akash Nanda
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