Serial Correlation or Auto Correlation

asked 1 hr ago

Let me know if I am right with my understanding >Low Correlation = its Effiecient market = "Level 1" of market efficency which is weak form of efficiencny >High Correlation = its ineffiecient market = which is "not even Level 1", so it will not come under weak form of efficiency or No weak form of efficiency Basically whether its comes under level 1 or Not is what i understand which we achieve from Run test, Just I got confused for the words weak and Not weak, where Not weakly effieciency is being confused as effiecient (that Not = Minus, Weak = Minus, Minus*Minus = +, so its efficient market), which is wrong understanding due to wrong way of reading So i guess "Weak form of effiecient" should be read as Level 1

latest answer

No answers yet!!

Hemachandra D

CA Final

★ 0

0

19

Difference in P590 Problems Complier and Class

asked 2 hrs ago

Sir in the P590 Problems Complier and Class it is mentioned,Market Exhibits Weak form of efficiency, but in class video its is mentioned "Not weak form of efficeincy", I am actuall confused whats correct one and what it actual means if its weak or not weak

latest answer

No answers yet!!

Hemachandra D

CA Final

★ 0

0

19

derivatives

asked 4 hrs ago

Long futures contracts may be preferred to equivalent forward contracts without central clearing when interest rates are: A) positively correlated with the price of the underlying. Correct Answer B) negatively correlated with the price of the underlying. Incorrect Answer C) uncorrelated with the price of the underlying. Pls explain how this positive and negative correlation affects the choice between fwd and futures contract i could not understand

latest answer

No answers yet!!

Dhakshana Dhakshana

CFA L1

★ 18K+

0

24

Derivatives

answered 9 hrs ago

Case 1 : I'm borrowing 1M $ for 6M @ MRR,3M from now Case2: I'm borrowing 1M$ for 6M @ fixed rate, 3M from now To hedge intrest rate risk in both the case can I enter an FRA ad a fixed rate payer???

latest answer

FRA

Dhakshana Dhakshana

CFA L1

★ 18K+

1

46

PGBP

answered 9 hrs ago

are companies allowed to declare presumptive income under section 44AD/44ADA

latest answer

No

Niveta Rajkumar

CA Inter

★ 5K+

1

33

Prepaid rent

answered 18 hrs ago

Why does prepaid rent included in the cost of current year's product. Also the entry for prepaid rent is prepaid rent to bank right in current year then the production control account is credited... Please clarify?

latest answer

The rent paid is debited to production oh control account. If there is anything pre paid at the end of the year , we will deduct it from cost by crediting production control account. If there is anything pre paid at the beginning of the period and relates to current year we will debit the production control account and include in cost

07- Issac Jolly-XII C

CA Inter

★ 13K+

1

47

ETHICS

answered 1 day ago

Several years ago, Hilton and Ross, a full service investment firm, managed the initial public offering of eCom, Inc. Now, eCom wants Hilton and Ross to underwrite its secondary public offering. A senior manager at Hilton and Ross asks Brent Whitman, CFA, one of its equity analysts, to write a favorable research report on eCom to help make the underwriting a success. Whitman conducts a thorough analysis of eCom and concludes that the company has serious problems that do not suggest a favorable financial outlook. Nevertheless, Whitman writes a favorable report because he is fearful of losing his job. Hilton and Ross publicly distribute a report that only contains a buy recommendation and a brief description of the basic characteristics of eCom. Whitman has violated: A) Both Standard I(B) Independence and Objectivity and Standard V(A) Diligence and Reasonable Basis. Correct Answer B) Standard I(B) Independence and Objectivity, only. Incorrect Answer C) Standard V(A) Diligence and Reasonable Basis only. Incorrect Answer why is option B NOT the ans cuz in this case whitmen Several years ago, Hilton and Ross, a full service investment firm, managed the initial public offering of eCom, Inc. Now, eCom wants Hilton and Ross to underwrite its secondary public offering. A senior manager at Hilton and Ross asks Brent Whitman, CFA, one of its equity analysts, to write a favorable research report on eCom to help make the underwriting a success. Whitman conducts a thorough analysis of eCom and concludes that the company has serious problems that do not suggest a favorable financial outlook. Nevertheless, Whitman writes a favorable report because he is fearful of losing his job. Hilton and Ross publicly distribute a report that only contains a buy recommendation and a brief description of the basic characteristics of eCom. Whitman has violated: A) Both Standard I(B) Independence and Objectivity and Standard V(A) Diligence and Reasonable Basis. Correct Answer B) Standard I(B) Independence and Objectivity, only. Incorrect Answer C) Standard V(A) Diligence and Reasonable Basis only. Incorrect Answer why B is not right because whitmen before issuing a report he indeed done an extensive research on the company so he didt violate 5A....pls explain

latest answer

He conducted sufficient diligence but there was no basis for his recommendation

Dhakshana Dhakshana

CFA L1

★ 18K+

2

104

Illustration 45

asked 1 day ago

In our case, Rs 68000 being the service charge in illustration 45, as it is a single contract, why we did not included it in lease liability and why expensed out?

latest answer

No answers yet!!

Hrishikesh Pradhan

CA Final

★ 3K+

0

131

ethics

answered 2 days ago

John McNeal, CFA, has a friend named Stan Green, a journalist at Investment News, a weekly magazine. In one of their conversations, Green tells McNeal he has written an article about undisclosed financial problems at Brightstar Company. Green says the article will appear in the issue of Investment News that will be released tomorrow. According to the Standards, McNeal: A) may not act on this information. Correct Answer B) should ask Green to disseminate the information immediately. Incorrect Answer C) may act on this information because it is in the process of becoming public. why is option b not the ans??if a person recive material non public info he should 'NOT' act on it right its not MAY not act and also he should tell the the firm to make the material non public info public this is what is learned pls explain

latest answer

Public info

Dhakshana Dhakshana

CFA L1

★ 18K+

1

130

ethics

answered 2 days ago

Fred Dean, CFA, has just taken a job as trader for LPC. One of his first assignments is to execute the purchase of a block of East Street Industries. While working with East Street on an assignment for his previous employer, he learned that East Street's sales have weakened and will likely be significantly below the LPC analyst's estimate, but no public announcement of this has been made. Which of the following actions would be the most appropriate for Dean to take according to the Standards? A) Contact East Street’s management and urge them to make the information public and make the trade if they refuse. Correct Answer B) Post the information about the drop in sales on an internet bulletin board to achieve public dissemination and inform his supervisor of the posting. Incorrect Answer C) Request that the firm place East Street’s stock on a restricted list and decline to make any trades of the company’s stock. why is option A correct??and pls explain in what case a firm should place a stock on restricted list

latest answer

Material info

Dhakshana Dhakshana

CFA L1

★ 18K+

1

126