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H model
AFM
answered on 18-Jul-25 17:55
the yellow part consists of supernormal portion from 0 till T. which is time, where T is known. therfore, should the denominator for the formula be (1+R)^t (being definite) or Ke-g(which is given in formula) . am i missing anything,sir? [Video Time Stamp: 05:24]
latest answer
H model
Jayanth
CA Final
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311
Perpetual Cashflow
AFM
answered on 19-Jul-25 16:10
"Perpetual Cashflow at the end of 5th year is given as ₹ 10,260 Lakhs". What's the significance of the word Perpetual in the sentence ? Doesn't it mean that cashflow given is the future cashflow of the business for perpetuity except not given at present value ( i.e perpetual CF (x) PVF of 5th year ). [Video Time Stamp: 00:54]
latest answer
Yes your underside correct
Mohanbabu N
CA Final
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261
Explanation
AFM
answered on 15-Jul-25 13:50
Sir, I have a doubt in the example mentioned for FRA, if SBI pays the PV of interest difference at the beginning of the loan to RIL means whether it will not lend 1 crore notional amount as agreed to RIL and sir can you explain the entries that will be passed in the books of RIL from 1st Jan i.e when RIL went long on FRA and till end of the loan as I can understand this concept in detail
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Understood sir, Thank you
siva chaitanya
CA Final
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281
Explanation
AFM
answered on 15-Jul-25 13:24
In the FRA Concept explanation, you took the example of SBI and RIL, in that example, you have mentioned RIL as fixed rate payer and floating rate receiver but how RIL will receive money from SBI because it borrowed from SBI and pays only fixed rate of 7%, so whether it is only fixed rate payer?
latest answer
Understood sir, Thank you
siva chaitanya
CA Final
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2
261
Security Analysis - Weak form of efficiency Test problem
AFM
answered on 15-Jul-25 22:20
Dear Sir, Kindly explain how Mean of X and Mean of Y had came in 3rd solution of security analysis chapter of CA Final AFM 600+ practise questions. I attach the image of question. Kindly clarify as soon as possible.
latest answer
Thank you Sir
PG Bhanusree
CA Final
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233
TECHNICAL ANALYSIS
AFM
answered on 15-Jul-25 06:34
Sir in technical analysis what are the factors that govern supply and demand of a stock? please provide some examples [Video Time Stamp: 04:48]
latest answer
Factors governing demand supply
lahari patlolla
CA Final
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216
Quant funds and monte carlo simulation
AFM
answered on 15-Jul-25 05:56
Can we say that monte carlo simulation is one of the ways to build quant funds [video Time Stamp: 05:19]
latest answer
No Monte Carlo simulation is a probability based method to look at potential returns and risk in an investment decision especially in an uncertain environment It can be deployed on any kind of fund depending on data that is available Quant funds employ math based models and algorithms to figure out return opportunities in various financial assets like stocks bonds currencies commodities etc
Leander 8181
CA Final
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285
H Model Answer
AFM
answered on 14-Jul-25 09:35
Whether this answer is correct Sir?
latest answer
Working is correct , but you will not get same answer is you use H model and GGM Unless you are specifically asked to, do not use H model in the exam
Banu Priya
CA Final
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291
Share count
AFM
answered on 13-Jul-25 10:44
Why we didn't add the new equity shares from part 3 to post share count in part 4 for public issue sir.
latest answer
Got the point. Thank you sir
Banu Priya
CA Final
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372
Querry
AFM
answered on 13-Jul-25 08:47
I had a query regarding mutual fund investment patterns that I’ve observed. It appears that fund managers often exhibit a bias in the proportionate distribution of Assets Under Management (AUM). For example, when investing in an HDFC Growth Fund, I’ve noticed a tendency to allocate a higher weightage to HDFC Bank. This raises concerns about diversification and potential conflicts of interest, especially when the fund is associated with the same group. Additionally, I was hoping you could clarify the fundamental difference between a Systematic Investment Plan (SIP) and a Systematic Withdrawal Plan (SWP). A clear distinction between these two would help in planning my investment and withdrawal strategy more effectively. Looking forward to your guidance on the above points.
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Thank you sir
Akash Nanda
CA Final
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