banner_ad

Mutual fund question query-sfm

CA Final 1467 views 18 replies

Dear All Experts

Please help to solve following question in SFM-

Refer to PM-SFM-Mutual Fund-Page 9.35-Question no. Excercise 1

Question is related to Classic Mutual funds

 

Please help.

 

 

Replies (18)
Thr is sm misprinting problem coz table which contains alpha,beta etc.does not hv any head for last column.. How much did u solve it ?

Hi

Actually i did'nt get the question & how to proceed with as beta is given 2 times therein.

Could you pls help me out?

 

 

dont know question is confusing or answers make me confused....there cant be two beta..i thing one column is of beta and other is of smthngelse

ok let me explain it..information is given for six mutual fund , market and  t.bills but details for classic mutual fund is not summarised like other mutual fund have in table i.e. alpha, beta , gama, rho,theta.information given in first table is need to be summarised like data in second table i.e. calculate Rate, S.D., beta and other required information.

T.bills are given to calculate Risk free rate of return and market return is given for calculation of market return and s.d. etc.

finally cracked it......try it on ur own after understanding the question ..if still cant solve then let me know,  i will attach solution in excel file

 

i guess this question is of old course rtp so check some old course rtps

Find S.D. of Classic, variance of market & co-variance of Classic with market. Use variance of market & co-variance of Classic with market to find beta of Classic. Use average rate of Classic & average risk-free rate to find ratios. Data of other mutual funds is irrelevant.

Thanks all

Actually i am ok with Sharpe Ration but got stuck while calculating Treynor ratio ie: Beta

It ill be really helpful, if you calculate beta. @ CA Sunil Gokhale

 

Beta = Covariance divided by variance of market

Thank u all of u Its work
I hv alrdy got all answer ..but still confused at that point..how can thr be two beta?
Pl confirm, whether beta of market is always equal to 1 na? How to calculate jensen ratio? I think 2 beta is given for confusion purpose only as all other data is irrelevant.
Yes...beta of market is 1. Jenson ratio is expected return - actual return So by equation u will get expected return - Rf+( Rm-Rf)beta...Rm is the rate which is avg of market rates And actual return will be that return which u calculated by taking avg of return of classic mutual fund..

Thank u so much for helping me.

'ill bother u by asking more queries smiley hope u 'ill help me again.

Thanks again

 

 

Welcome..yeah u can ask..i will try to solve it ..evn it help me to get a better grip over the subject
Can anyone give hint of solution of this question... I m confused..


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
14 May 2026
Senior Accounts Executive

Karan Gupta & Co.

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details