Hedging means you are already owning some possition... take example of weet farmer he is affraid of price falling so he will sell forward contract in future ( like 2 months). Here he is simultaneously taking both possion so it is a arbitrage activity. Hope it will help you. thankyou
Hedging means you are already owning some possition… take example of weet farmer he is affraid of price falling so he will sell forward contract in future ( like 2 months).
Here he is simultaneously taking both possion so it is a arbitrage activity.
Simple Margin call means additional fund required to deposit with broker. In equity if the if the initial margin fall below the maintenance margin we need to deposit margin balance back to maintenance margin. In another topic called Derivative .... we have to deposit margin balance back to initial mRead more
Simple Margin call means additional fund required to deposit with broker.
In equity if the if the initial margin fall below the maintenance margin we need to deposit margin balance back to maintenance margin.
In another topic called Derivative …. we have to deposit margin balance back to initial margin.
In market cap weighted index weight automatically adjusted. In equally weighed index If constituent security price rises Ex. 10 to 15 12 to 10 15 to 20 You have invested equal amount in each. Here weight kisi me Kam to kisi me jyada hogya hoga. To jisme weight Kam huaa usme badana hoga vice versa
In market cap weighted index weight automatically adjusted.
In equally weighed index
If constituent security price rises
Ex. 10 to 15
12 to 10
15 to 20
You have invested equal amount in each.
Here weight kisi me Kam to kisi me jyada hogya hoga.
To jisme weight Kam huaa usme badana hoga vice versa
EQUALLY WEIGHTED INDEX.. For example there is a 5 constituent securities in a particular index . We will invest equal dollar amount ..price of securities respectively 10,12,15,20,25 .....prices are changing every moment so weights are accordingly going to change ..so frequent rebalancing required..Read more
EQUALLY WEIGHTED INDEX..
For example there is a 5 constituent securities in a particular index . We will invest equal dollar amount ..price of securities respectively 10,12,15,20,25 …..prices are changing every moment so weights are accordingly going to change ..so frequent rebalancing required..
MARKET CAP WEIGHTED INDEX..
Fomula =No. of shares × share price
Take above example……
Market cap is respectively (in lakh) 50,100,30,20,10
When price will change the weight are automatically going to change…
CONCLUSION…..
So frequent rebalancing is required in equally weighed index
management fee is paid end of year value 90*2%=1.80 now Insentive fee (there is a high watermark) therefore insted we calculate incentive fee using 70 to 90 we take 75 to 90 that is 15*20%=3 total fee for year 2=1.80+3=4.8
management fee is paid end of year value
90*2%=1.80
now Insentive fee (there is a high watermark)
therefore insted we calculate incentive fee using 70 to 90 we take 75 to 90
management fee is paid end of year value 90*2%=1.80 now Insentive fee (there is a high watermark) therefore insted we calculate incentive fee using 70 to 90 we take 75 to 90 that is 15*20%=3 total fee for year 2=1.80+3=4.8
management fee is paid end of year value
90*2%=1.80
now Insentive fee (there is a high watermark)
therefore insted we calculate incentive fee using 70 to 90 we take 75 to 90
hedge………..
Hedging means you are already owning some possition... take example of weet farmer he is affraid of price falling so he will sell forward contract in future ( like 2 months). Here he is simultaneously taking both possion so it is a arbitrage activity. Hope it will help you. thankyou
Hedging means you are already owning some possition… take example of weet farmer he is affraid of price falling so he will sell forward contract in future ( like 2 months).
Here he is simultaneously taking both possion so it is a arbitrage activity.
Hope it will help you.
thankyou
See lessTopic: Margin call
Simple Margin call means additional fund required to deposit with broker. In equity if the if the initial margin fall below the maintenance margin we need to deposit margin balance back to maintenance margin. In another topic called Derivative .... we have to deposit margin balance back to initial mRead more
Simple Margin call means additional fund required to deposit with broker.
In equity if the if the initial margin fall below the maintenance margin we need to deposit margin balance back to maintenance margin.
In another topic called Derivative …. we have to deposit margin balance back to initial margin.
hope it will help you.
See lessRebalancing of Index
In market cap weighted index weight automatically adjusted. In equally weighed index If constituent security price rises Ex. 10 to 15 12 to 10 15 to 20 You have invested equal amount in each. Here weight kisi me Kam to kisi me jyada hogya hoga. To jisme weight Kam huaa usme badana hoga vice versa
In market cap weighted index weight automatically adjusted.
See lessIn equally weighed index
If constituent security price rises
Ex. 10 to 15
12 to 10
15 to 20
You have invested equal amount in each.
Here weight kisi me Kam to kisi me jyada hogya hoga.
To jisme weight Kam huaa usme badana hoga vice versa
Rebalancing of Index
Take one example of both index Write in your book. I have explained you with example. If you do not understand then again ask. I will tell you.
Take one example of both index
See lessWrite in your book.
I have explained you with example.
If you do not understand then again ask. I will tell you.
Rebalancing of Index
Answer is B Reffer link 👇 https://forum.sseiqforum.com/question/rebalancing-of-index-2/
Answer is B
Reffer link 👇
See lessRebalancing of Index
EQUALLY WEIGHTED INDEX.. For example there is a 5 constituent securities in a particular index . We will invest equal dollar amount ..price of securities respectively 10,12,15,20,25 .....prices are changing every moment so weights are accordingly going to change ..so frequent rebalancing required..Read more
Equity security market
Your explanation is good but if you can explain in audio form (Hindi) it will help me a lot Thankyou
Your explanation is good but if you can explain in audio form (Hindi) it will help me a lot
Thankyou
See lessCFA LEVEL 1 CURRICULUM PDF 2023
actually i am not registered for class and also with CFA institute.
actually i am not registered for class and also with CFA institute.
See lessRegarding management fees
management fee is paid end of year value 90*2%=1.80 now Insentive fee (there is a high watermark) therefore insted we calculate incentive fee using 70 to 90 we take 75 to 90 that is 15*20%=3 total fee for year 2=1.80+3=4.8
management fee is paid end of year value
90*2%=1.80
now Insentive fee (there is a high watermark)
therefore insted we calculate incentive fee using 70 to 90 we take 75 to 90
that is 15*20%=3
total fee for year 2=1.80+3=4.8
See lessRegarding management fees
management fee is paid end of year value 90*2%=1.80 now Insentive fee (there is a high watermark) therefore insted we calculate incentive fee using 70 to 90 we take 75 to 90 that is 15*20%=3 total fee for year 2=1.80+3=4.8
management fee is paid end of year value
90*2%=1.80
now Insentive fee (there is a high watermark)
therefore insted we calculate incentive fee using 70 to 90 we take 75 to 90
that is 15*20%=3
total fee for year 2=1.80+3=4.8
See less