http://www.meetup.com/soleadea/
The initiative has just started, but there are small communities out there, e.g. the Bangalore community http://www.meetup.com/soleadea/Bangalore-IN/
For those of us who are willing to set up a real CFA study group, there is an easy way:
http://www.meetup.com/soleadea/
http://www.meetup.com/soleadea/
@magnumopus22605 With reference to you question Changes in slope of the yield curve:
A) have little effect on the value of well diversified portfolio
B) highlight the need for risk measures such as rate duration and key rate duration.
C) impact the value of floating rate securities more than they impact the value of fixed coupon securities
- The answer seems to be B.
A) have little effect on the value of well diversified portfolio
B) highlight the need for risk measures such as rate duration and key rate duration.
C) impact the value of floating rate securities more than they impact the value of fixed coupon securities
- The answer seems to be B.
A is incorrect because even the well diversified portfolio will have systematic risk - and Interest Rate changes in the economy are systematic
C is incorrect because floating rate securities change the coupon rate based on the change in interest rates - and hence the impact on them is far lesser than fixed rate bonds
B seems correct since key rate duration gives you a measure of duration at key points on the yield curve. This should become more relevant in non parallel shifts in the yield curve.
Hope this helps!
Hi I am just posting few questions which would help CFA level 1 canddates better prepare for the exams.
a) Rs. 3,200 crs
b) Rs. 3,120 crs
c) Rs. 3,280 crs
can anybody please tell me how to enter the dates in the work experience page if I am currently working with an organization... the page does not allow future dates either... help needed soon...
@gurjotsingh said:@Jeeku Add your last work experience till the current date.
That will imply that I am leaving the job this month only, whereas I will be continuning with this job...
@Jeeku said:That will imply that I am leaving the job this month only, whereas I will be continuning with this job...
Yes, but there is no other option. I did the same.
@magnumopus22605
So, you need to measure sensitivity at all the points (i.e. maturity) where you expect cash flows of the curve. This approach is Key Rate Duration (KRD).
Ans is B.
Duration measures sensitivity to change in value of a particular spot rate.
So, unless your portfolio has a profile of a zero-coupon bond (no interim coupon, all cash flows at maturity), duration will not be accurate in figuring out sensitivity of the portfolio.
So, you need to measure sensitivity at all the points (i.e. maturity) where you expect cash flows of the curve. This approach is Key Rate Duration (KRD).
Ans is B.
Hi people,
I have just decided to give CFA and tomorrow is the last day for 2nd registration.
I am not sure whether I will give it in June or December, hence I want to know whether I can use the same registration to give December exam?
Please reply asap
@Nirmal_Analyst
@astha5 said:a) Rs. 3,200 crs
Rs. 3200 crs is the right answer. The subsidy will not be capitalised.
Level 1 question for the day
Biocon a bio pharma company sold a new molecule about which it has researched and established commercial feasibility to Pfizer inc . The molecule is yet to be commercially developed. Biocon has so far spent Rs.120 crs in researching this molecule and the molecule has been sold to Rs.200 crs. What would be the 1) Incremental profit before tax recognized by Biocon during the year of sale?
2) What would be the Good will recorded by Pfizer during the year of purchase?
Biocon's Incremental EBT
a) Rs.0
b) Rs. 80 crs
c) Rs. 200 crs
Pfizer's Good will
a) 200 crs
b) 80 crs
c) 0 Crs
Biocon a bio pharma company sold a new molecule about which it has researched and established commercial feasibility to Pfizer inc . The molecule is yet to be commercially developed. Biocon has so far spent Rs.120 crs in researching this molecule and the molecule has been sold to Rs.200 crs. What would be the 1) Incremental profit before tax recognized by Biocon during the year of sale?
2) What would be the Good will recorded by Pfizer during the year of purchase?
Biocon's Incremental EBT
a) Rs.0
b) Rs. 80 crs
c) Rs. 200 crs
Pfizer's Good will
a) 200 crs
b) 80 crs
c) 0 Crs
@Nirmal_Analyst The answers would be c) for question 1 and C for question 2. Explanation: Q1 All the costs incurred during research phase has to be completely expensed so the Rs.120 crs is anyways expensed. The incremental profit is because of selling the molecule is thus Rs.200 crs. b) Refer Topic 'Intangible assets purchased in situations other than business combinations'. In such kind of purchases intangible asset should be recorded at fair value which is assumed to be purchase Price. recognition Initial Goodwill in these transactions are not allowed.
@Nirmal_Analyst said:Level 1 question for the dayBiocon a bio pharma company sold a new molecule about which it has researched and established commercial feasibility to Pfizer inc . The molecule is yet to be commercially developed. Biocon has so far spent Rs.120 crs in researching this molecule and the molecule has been sold to Rs.200 crs. What would be the 1) Incremental profit before tax recognized by Biocon during the year of sale?2) What would be the Good will recorded by Pfizer during the year of purchase?Biocon's Incremental EBTa) Rs.0b) Rs. 80 crsc) Rs. 200 crsPfizer's Good willa) 200 crsb) 80 crsc) 0 Crs
CFA Level 1 question of the day
It is seen that the conditional probability of Sachin scoring a century when India wins a match is 36%. If the probability of India winning matches in the sample given is 50%, and Sachin scored centuries in 20% of all Indian matches, solve the following
• Create the probability structure, assuming 100 matches.
• What is the joint probability of India winning a match and Sachin not scoring a 100?
• What is the conditional probability of Sachin scoring a 100 when India loses the match?
• Given that you have been told that Sachin has scored a 100, what is the probability that India has won the match?
It is seen that the conditional probability of Sachin scoring a century when India wins a match is 36%. If the probability of India winning matches in the sample given is 50%, and Sachin scored centuries in 20% of all Indian matches, solve the following
• Create the probability structure, assuming 100 matches.
• What is the joint probability of India winning a match and Sachin not scoring a 100?
• What is the conditional probability of Sachin scoring a 100 when India loses the match?
• Given that you have been told that Sachin has scored a 100, what is the probability that India has won the match?
Hello Everyone,
I am a 2012 passout and currently working with an ibank as a tech analyst, I woud like to switch my field to finance. Would like to ask will clearing CFA L1 without an MBA bring any difference to my salary/package? Although it will surely change my profile.
Looking forward to hear from you all 
Thanks !
What is the last date for registering for december 2013 attempt ?
Can some1 tell me something about cfa ?
Hi Anuj 07,
If you enroll before march 13 2013 for dec'13 exams you will pay USD 1080. The same exam if registered between march and august would cost you USD 1180. Roughly Rs.5300 extra. Post August it would cost USD 1545, which is close to Rs.25,000 extra compared to first deadline.
@rs0605 said:Hello Everyone,I am a 2012 passout and currently working with an ibank as a tech analyst, I woud like to switch my field to finance. Would like to ask will clearing CFA L1 without an MBA bring any difference to my salary/package? Although it will surely change my profile.Looking forward to hear from you all Thanks !
It depends on your current package. Once you pass CFA level 1, there is a high probability that doors of KPO ( I mean leading KPOs) open for you. Starting package of them ranges from 6-7 Lakhs p,a based on what I heard. Some times boutique Ibanks and sell side firms will also consider you and the salary package in this case will also be the same. Ofcourse do bear in mind once you tell companies you carry work experience most of them would want to add 15-20% to your current CTC, that is a risk of course if you are on a lower base
CFA level 1 Question for the day
Laxman Ltd reported a return on equity of 27%. Net profit margin of 6% and Asset turn over ratio of 1.4X. If the company had Equity of 550 crs what would be the company €™s Average total assets
a.Rs. 1650 crs
b.Rs.183.3 crs
c.Rs.2475 crs
Laxman Ltd reported a return on equity of 27%. Net profit margin of 6% and Asset turn over ratio of 1.4X. If the company had Equity of 550 crs what would be the company €™s Average total assets
a.Rs. 1650 crs
b.Rs.183.3 crs
c.Rs.2475 crs
@Nirmal_Analyst said:CFA level 1 Question for the dayLaxman Ltd reported a return on equity of 27%. Net profit margin of 6% and Asset turn over ratio of 1.4X. If the company had Equity of 550 crs what would be the company €™s Average total assetsa.Rs. 1650 crsb.Rs.183.3 crsc.Rs.2475 crs
I am getting the answer as 1767 crs. Please correct me where i am wrong.
PAT/Equity = return on Equity = .27 => PAT = Equity *.27 = 148.5 crores
PAT/sales = net profit margi = .06 => Sales = PAT/.06 = 2475 crores
Finally, Sales / avg assets = asset turnover = 1.4x => avg assets = 2475/1.4 = 1767 crores.