Sir, I think there is a mistake at your end. Regarding the review of operational risk, Soumya sir has sent question solving class via email ,which was already added in the google drive. Regarding the hypothesis testing and time series - Sir the quants new addn class 6 part 2 ends with you saying thaRead more
Sir, I think there is a mistake at your end.
Regarding the review of operational risk, Soumya sir has sent question solving class via email ,which was already added in the google drive.
Regarding the hypothesis testing and time series – Sir the quants new addn class 6 part 2 ends with you saying that the both topic will be covered in the next class.
Sir what about the " How Do Firm Manage Financial Risk ? " chapter in foundations ??? While discussing the changes in syllabus Karan sir said that he will take new classes for it.
Sir what about the ” How Do Firm Manage Financial Risk ? ” chapter in foundations ???
While discussing the changes in syllabus Karan sir said that he will take new classes for it.
The formula for finding expected rate of return for a security or portfolio is Rf + (Er1- Rf)* B1 + (Er2 – Rf) *B2 As per what you are saying , the Er 1 and Er 2 in the above formula is the required rate of return(RRR) and not the consensus expected rate of return of factor . From the question givenRead more
The formula for finding expected rate of return for a security or portfolio is Rf + (Er1- Rf)* B1 + (Er2 – Rf) *B2
As per what you are saying , the Er 1 and Er 2 in the above formula is the required rate of return(RRR) and not the consensus expected rate of return of factor . From the question given we can calculate RRR , and the market consensus rate of the respective factor is already given (ie)
RRR( Rf+FRP) Market consensus rate
1) 4 3
2) 6 4
3) 5 2
In this regards I have two doubts,
1) As per the assumptions of APT, all securities are fairly priced i.e RRR= ERR. So why the difference between the two ?? ( the answer given in the back also confirms this. I am adding a photo of it please see it)
2) While calculating revised expected rate of return , as per what you are saying we should compare EXPECTED CONSENSUS FACTOR RETURN with ACTUAL RETURN REALISED . But is it not wrong to do this as we have used RRR and not the consensus rate while calculating expected rate of return for security in first place.
Hope you are understanding what i am thinking and sorry for being too long.
STANDARD CAPM
Thank you sir, understood.
Thank you sir, understood.
See lessSTANDARD CAPM
Thank you sir, audio se samaj gaya.
Thank you sir, audio se samaj gaya.
See lessFoundation
Kaplan schweser – Chapter 2 How do firms manage financial risk – LO 2.c – Hedging Disadvantages (In theory)
Kaplan schweser – Chapter 2 How do firms manage financial risk – LO 2.c – Hedging Disadvantages (In theory)
See lessFoundations
Kaplan schweser - Chapter 2 How do firms manage financial risk - LO 2.c - Hedging Disadvantages (In theory)
Kaplan schweser – Chapter 2 How do firms manage financial risk – LO 2.c – Hedging Disadvantages (In theory)
See lessFrm Part 1 Pending Syllabus
Sir, I think there is a mistake at your end. Regarding the review of operational risk, Soumya sir has sent question solving class via email ,which was already added in the google drive. Regarding the hypothesis testing and time series - Sir the quants new addn class 6 part 2 ends with you saying thaRead more
Sir, I think there is a mistake at your end.
Regarding the review of operational risk, Soumya sir has sent question solving class via email ,which was already added in the google drive.
Regarding the hypothesis testing and time series – Sir the quants new addn class 6 part 2 ends with you saying that the both topic will be covered in the next class.
Please resolve this confusion.
See lessCorrelation
Then what is the meaning of "correlation only captures only linear relationship between two variables " ??
Then what is the meaning of “correlation only captures only linear relationship between two variables ” ??
See lessFrm part 1 syllabus for January 21
Sir what about the " How Do Firm Manage Financial Risk ? " chapter in foundations ??? While discussing the changes in syllabus Karan sir said that he will take new classes for it.
Sir what about the ” How Do Firm Manage Financial Risk ? ” chapter in foundations ???
While discussing the changes in syllabus Karan sir said that he will take new classes for it.
See lessBayesian Analysis
Ok sir, understood.
Ok sir, understood.
See lessArbitrage pricing theory
The formula for finding expected rate of return for a security or portfolio is Rf + (Er1- Rf)* B1 + (Er2 – Rf) *B2 As per what you are saying , the Er 1 and Er 2 in the above formula is the required rate of return(RRR) and not the consensus expected rate of return of factor . From the question givenRead more
The formula for finding expected rate of return for a security or portfolio is Rf + (Er1- Rf)* B1 + (Er2 – Rf) *B2
As per what you are saying , the Er 1 and Er 2 in the above formula is the required rate of return(RRR) and not the consensus expected rate of return of factor . From the question given we can calculate RRR , and the market consensus rate of the respective factor is already given (ie)
RRR( Rf+FRP) Market consensus rate
1) 4 3
2) 6 4
3) 5 2
In this regards I have two doubts,
1) As per the assumptions of APT, all securities are fairly priced i.e RRR= ERR. So why the difference between the two ?? ( the answer given in the back also confirms this. I am adding a photo of it please see it)
2) While calculating revised expected rate of return , as per what you are saying we should compare EXPECTED CONSENSUS FACTOR RETURN with ACTUAL RETURN REALISED . But is it not wrong to do this as we have used RRR and not the consensus rate while calculating expected rate of return for security in first place.
Hope you are understanding what i am thinking and sorry for being too long.
See less