The concept of Constant Proportion portfilio Theory has not been covered in ICAI material forget a practical illustration.

How will students attempt wen there is no mention of this concept. May be the paper setter did nt know that?

And why shud we suffer for his mistakes. ICAI wake up. Dont play with our future. 

Any Sanjay Saraf Sir student here ? Most of d questions were out of his syllabus too i guess...both Accountancy and Sfm paper contained some doubtful elements,,,

Guys, groww up....it was quite a simple paper...U guys r appearing for CA Final....and with the quality of SFM paper I saw, I think the institute was quite liberal in setting up an easy to moderate paper......CA Final is not about reading and solving N number of books and then cribbing at the end that the examination papers were not covered from the books we read.....Tomorrow we all are gonna be managers, CFO and then we cannot say that this problem was not covered in our CA syllabus and hence i cannot solve it.....Life is very difficult in practical world....and unless we have our concepts crystal clear we will always end up cribbing.....Focus on one good book or a tutor and get your concepts get cleared....Dont waste your timing in solving 100s of books.....Work on your concepts and focus on one book....The more number of books you will follow the more different concepts for solving the same problem you will see and at the end will let your mind confuse.....Better prepare yourself in a prudent manner.......

When you appear for professional exam there is nothing called as a syllabus.....Can you blame the institute if in final there is a conceptual question covered from the topics we studied in our BCOM first year or class 12....No we cant....So wake up and be focussed in your approach....

With the concepts cleared if you would have foucsed on just first 3 and the fifth question one can easily score an exemption in SFM paper....Trust me it was an easy paper....Only thing u need is a patient and self confidence....relax in the exam hall and belief in yourself and the labour u have put in to reach to this level......u will excel easily....

Keep studying and enjoying and stop cribbing about the examiner's and insititute.....

Regards

CA Rajiv....

With the concepts cleared if you would have foucsed on just first 3 and the fifth question one can easily score an exemption in SFM paper....Trust me it was an easy paper....Only thing u need is a patient and self confidence....relax in the exam hall and belief in yourself and the labour u have put in to reach to this level......u will excel easily....

Keep studying and enjoying and stop cribbing about the examiner's and insititute.....

Very good points pointed out by You Mr Rajiv,main thing is keeping patience in exam hall.

Can anybody xplain Q. 3b with its answer plz .

Every "WEIRD" question was based on Topics given in SFM Study Mat of Insti.. its too bad if you relied only on the COACHING/NOTES of these SO CALLED "GURUS" like

Ashish kalra

Aditya Jain etc etc.

All of the most difficult/ weird Questions could be done in a few minutes if you knew the RIGHT FORMULA. (except NIFTY[4(a)])

as given in the study mat

plus of-course RTPs of 3 attempts.

Study mat + prac Manual + RTP = scoring>70

i myself took coaching for a month from RAJESH MAKKAR in Delhi. realised he's bad..left it..took ashish kalras notes...same result...i was not understanding the CONCEPTS..these people just teach STEPS to doing questions.. NOT WHY WE ARE DOING THEM..

and for M&A i did have to go through AAditya Jain's notes (had to study at a frens place, he had only aaditya jain) they were PATHETIC. simply PATHETIC.

the worst teacher ever i guess..what the hell...sirf formulae likhwa diye..

Originally posted by : kisna
	The concept of Constant Proportion portfilio Theory has not been covered in ICAI material forget a practical illustration. How will students attempt wen there is no mention of this concept. May be the paper setter did nt know that? And why shud we suffer for his mistakes. ICAI wake up. Dont play with our future.

DUDE..As Rajiv Bhasin said..its CA- FINAL  

you care about your future..use your brain and keep yourself updated with new trends of the real world!!!

exactly Prashant.I totally agree with you if everybody is  just mugging up problems and expecting them to have them in the QP verbatim, whats the use in becoming a CA? Guess ICAI has finally opened its eyes and realized that there is no point in churning out mugging-experts. Lets say bring it on. lets become true experts.

yea, a little twist and people start falling to their faces

Walter model question for eg. I cannot say whether any GURU covered the exact same question or not

but am guessing, not. Since, people were making a hue and cry about that question too @ my exam centre.

I wish Ca was more about concepts than mugging and remembering.

We are expected to know every minute provision and procedure in the book, amt of every exemption available, abatement in every service, notification no, etc.i mean its jst ridiculous.

And if this was less, you are expected to know unheard concepts such as "Constant Proportion Portfolio Insurance Policy" combined with vague and erronious questions.

You cannot be an expert in 8 differnt fields knowing everything under the sky.

CA not just has high unsystematic risk which can be reduced by diversifying in other courses but also high systematic risk that every CA student is prone to. Often high beta students( who take risk by doing selective study) get better returns than low -beta students

On second thought i just remembered, if any body can explain me the logic behind the Beta formula as a measure of systematic risk, am sure people feeling SFM paper was conceptual can answer this simple question.(10marks) 

Originally posted by : Manish Nahar
	I wish Ca was more about concepts than mugging and remembering. We are expected to know every minute provision and procedure in the book, amt of every exemption available, abatement in every service, notification no, etc.i mean its jst ridiculous. And if this was less, you are expected to know unheard concepts such as "Constant Proportion Portfolio Insurance Policy" combined with vague and erronious questions. You cannot be an expert in 8 differnt fields knowing everything under the sky. CA not just has high unsystematic risk which can be reduced by diversifying in other courses but also high systematic risk that every CA student is prone to. Often high beta students( who take risk by doing selective study) get better returns than low -beta students On second thought i just remembered, if any body can explain me the logic behind the Beta formula as a measure of systematic risk, am sure people feeling SFM paper was conceptual can answer this simple question.(10marks)

oh yes, you are missing the point you have to have expert knowledge in only 4 subjects which make you get above 60 and only  advanced knowledge in the rest enabling you a minimum 45 in each

that translates to you should know well enough to score 60% in 100% topics of the Expert level subjects and  60% knowledge in 75% of topics of the subject.

you are free to obviously modify this

Let me forst correct your statement:

CA has high Unsystemmatic risk which can be diversified by pursuing other subjects (CS/CWA/MBA/LAW)

BUT Systemmatic risk higher than other Courses in the market (systemmatic risk being the risk all Courses being prone to)

lets say CA has a beta of 3.0

where due to change in absorption rate in market of qualified professionals other Courses Reduce their pass percentage by 10%

CA students will experience fall in pass percentage by 30%

As for the Portfolio analysis as Explained by Sharpe's Model (THIS IS NOT THE SHARPE RATIO FOR EVALUATION OF PORTFOLIOS)

Systemmatic risk of a Security is = (Beta of security) square * Variance of Market

Unsystemmatic Risk of security [AKA (error term of security)square]   =  Variance of Security - Systemmatic risk 

note 1: (Error term)sqaure is not the same as standard deviation of error term. (which was as given in question of may 12 exam)

note 2: the IMPORTANT point is Beta has to be derived by Regression Analysis not Correlation Analysis (but it was given so no problems)

Now,

Systemmatic Risk of portfolio = {Square of [Sum of( weight of sec * beta of sec)] } * variance of market 

this part was easily calculated as per the info in question

Unsystematic risk of portfolio = sum of {(square of weights of security )* (unsystemmatic risk of each security)}

Note 1 : kindly see the brackets very carefully\

Note 2 : the question did not provide information to easily calculate Unsystemmatic Risk of each secutiy for that there is an alternate formula

First find Coefficient of Correlation of each security with market (r)

then Unsystemmatic risk of each security is defined by

Variance of security * (1 - Coefficient of Correlation of security with market)

Now the question did not provide any information as to figure out the unsystemmatic risk of each security

Thereby, I being a Mortal know only this much. I racked my brains on this in the exam and am yet to find out how we should proceed with it.

Seeing the Sharpe's MOdel Question i was happy as i thought i knew enough on this topic i chose question. only after seeing the anomally in the question i was like what the......

Any way hope it helped.

lemme know if i am wrong.

And if it was any attempt at mockery Mr. Manish Nahar 

Go and pick up a Study Material of SFM and turn to page no. 7.38 and read. If you will not read you will not know the "Concepts". 

Sorry people I Have to go.

Audit Calling..