I'll tell the formula first and then the explanation. G-T=S-I + M-X. So if LHS increases, I has to decrease to increase RHS. INTUITION- government spending is funded by either savings by public and Institutions which is S-I. OR it is funded by foreign countries. If foreign countries fund it, it meanRead more
I’ll tell the formula first and then the explanation.
G-T=S-I + M-X.
So if LHS increases, I has to decrease to increase RHS.
INTUITION- government spending is funded by either savings by public and Institutions which is S-I. OR it is funded by foreign countries. If foreign countries fund it, it means a capital ac surplus or a current ac deficit. Therefore, M-X.
HOPE THIS HELPS
I am sharing a method I use to do this type of sum . See if you find it useful. I always remove the 'least likely' part when reading the sentence. So I get 2 correct statements. Then the other one left is the ans. In this q , we know that AI is less transperent, has less historical data available (Read more
I am sharing a method I use to do this type of sum . See if you find it useful.
I always remove the ‘least likely’ part when reading the sentence. So I get 2 correct statements. Then the other one left is the ans.
In this q , we know that AI is less transperent, has less historical data available ( since disclosure of results is voluntary) , and has more restricted redemption terms(long term non liquid investing) than traditional investment.
Hence by doing it by the aforementioned way, u see that b and c are correct w.r.t to AI. hence a is the ans.
For statement 1. Rebalancing generally involves rebalancing the weights as per the original plan. So whenever rebalancing is done, some securities are sold and some are bought to rebalance the portfolio. Selling of securities this creates turnover. For statement 2 Consider three stocks A B AND C. WeRead more
For statement 1.
Rebalancing generally involves rebalancing the weights as per the original plan. So whenever rebalancing is done, some securities are sold and some are bought to rebalance the portfolio. Selling of securities this creates turnover.
For statement 2
Consider three stocks A B AND C.
We invest 1 lakh in each. After some time say 1 year value of security A and B increase to 120000 each. But value of C increases just to 110000. So the weight of C will become less than 1/3rd. So we will have to buy C , to make the weights equal.
Mock 1 nov 2022 Q6(b)(i)2
That's what I am saying. The figure of 220 is arrived after deducting interest. So where does 220-30 comes from
That’s what I am saying. The figure of 220 is arrived after deducting interest.
See lessSo where does 220-30 comes from
back testing in opstra
here is the position on expiry
here is the position on expiry
See lessI am still confused with this question. Budget deficit will be balanced with increase in saving but its asking for a decrease in a component?
I'll tell the formula first and then the explanation. G-T=S-I + M-X. So if LHS increases, I has to decrease to increase RHS. INTUITION- government spending is funded by either savings by public and Institutions which is S-I. OR it is funded by foreign countries. If foreign countries fund it, it meanRead more
I’ll tell the formula first and then the explanation.
See lessG-T=S-I + M-X.
So if LHS increases, I has to decrease to increase RHS.
INTUITION- government spending is funded by either savings by public and Institutions which is S-I. OR it is funded by foreign countries. If foreign countries fund it, it means a capital ac surplus or a current ac deficit. Therefore, M-X.
HOPE THIS HELPS
floatation cost
My question is why do we reduce floatation cost from p0. It is wrong treatment.
My question is why do we reduce floatation cost from p0. It is wrong treatment.
See lessQ105 pg 62
THE MULTIPIER EFFECT IS OF 4(1/.25). IF 7.5 MIL IS INITIALLY LENT, THEN EFFECT SHOULD BE OF 30 MIL RIGHT?
THE MULTIPIER EFFECT IS OF 4(1/.25). IF 7.5 MIL IS INITIALLY LENT, THEN EFFECT SHOULD BE OF 30 MIL RIGHT?
See lessQ 107. Pg 128
I understand that c is correct. But I think options A and B are correct as well.
I understand that c is correct. But I think options A and B are correct as well.
See lessQ105 pg 62
I don't get the 25% reserve. 2.5 mil should go to reserve, then the remaining is used for multiplier.
I don’t get the 25% reserve. 2.5 mil should go to reserve, then the remaining is used for multiplier.
See lessAI
I am sharing a method I use to do this type of sum . See if you find it useful. I always remove the 'least likely' part when reading the sentence. So I get 2 correct statements. Then the other one left is the ans. In this q , we know that AI is less transperent, has less historical data available (Read more
I am sharing a method I use to do this type of sum . See if you find it useful.
I always remove the ‘least likely’ part when reading the sentence. So I get 2 correct statements. Then the other one left is the ans.
In this q , we know that AI is less transperent, has less historical data available ( since disclosure of results is voluntary) , and has more restricted redemption terms(long term non liquid investing) than traditional investment.
Hence by doing it by the aforementioned way, u see that b and c are correct w.r.t to AI. hence a is the ans.
See lessCorporate finance
Cost of debt means cost of issuing additional debt. Hence any prior debt is not taken into consideration
Cost of debt means cost of issuing additional debt. Hence any prior debt is not taken into consideration
See lessEquity
For statement 1. Rebalancing generally involves rebalancing the weights as per the original plan. So whenever rebalancing is done, some securities are sold and some are bought to rebalance the portfolio. Selling of securities this creates turnover. For statement 2 Consider three stocks A B AND C. WeRead more
For statement 1.
Rebalancing generally involves rebalancing the weights as per the original plan. So whenever rebalancing is done, some securities are sold and some are bought to rebalance the portfolio. Selling of securities this creates turnover.
For statement 2
Consider three stocks A B AND C.
We invest 1 lakh in each. After some time say 1 year value of security A and B increase to 120000 each. But value of C increases just to 110000. So the weight of C will become less than 1/3rd. So we will have to buy C , to make the weights equal.
Hope it helps
See less