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Showing posts with the label CFA LEVEL 1

Nifty Analysis 10th Jul 2025

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  Nifty 50 Intraday Options Analysis: Key Takeaways (July 10, 2025) This summary provides a concise overview of the Nifty 50 market analysis, highlighting key factors influencing its intraday movement and the recommended low-risk trading strategy. I. Market Snapshot & Overall Sentiment Nifty Close: Closed at 25,355.25, down 120.85 points (-0.47%), indicating a negative bias. Consolidation Phase: The market is in a range-bound consolidation, influenced by FII outflows and mixed global cues. Rising IV: Implied Volatility (IV) is trending higher, making option selling strategies more attractive due to inflated premiums. II. Institutional Flows: The Tug-of-War FII Selling: Foreign Institutional Investors (FIIs) are persistent net sellers (₹5,477.90 crore MTD) and have increased their net short positions in index futures (₹75,705 crore). This exerts downward pressure. DII Buying: Domestic Institutional Investors (DIIs) are consistently net buyers (₹7,332.30 crore MTD), providin...
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Time Value Of Money - Applications Of Calculations

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        World of Finance by M.Vijaya Sai  Applications of Calculations in Time  Value Of Money   I. MORTGAGES Most of the problems from the time value material are likely to ask for either PV or FV and will provide the other variables. However, on a test with hundreds of problems, the CFA exam will look for unique and creative methods to test command of the material. A problem might provide both FV and PV and then ask you to solve for an unknown variable, either the interest rate (r), the number of periods (N) or the amount of the annuity (A). In most of these cases, a quick use of freshmen-level algebra is all that's required. We'll cover two real-world applications – each was the subject of an example in the resource textbook, so either one may have a reasonable chance of ending up on an exam problem. Annualized Growth Rates The first application is annualized growth rates. Taking the formula for FV of a single s...
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Time Value Of Money

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        World of Finance by M.Vijaya Sai Reference: DeFusco, McLeavey, Pinto, Runkle, Quantitative Methods for Investment Analysis, 2nd edition, Chapter 1 (pages 1-55). I. BASICS The principle of time value of money – the notion that a given sum of money is more valuable the sooner it is received, due to its capacity to earn interest – is the foundation for numerous applications in investment finance. Central to the time value principle is the concept of interest rates. A borrower who receives money today for consumption must pay back the principal plus an interest rate that compensates the lender. Interest rates are set in the marketplace and allow for equivalent relationships to be determined by forces of supply and demand. In other words, in an environment where the market-determined rate is 10%, we would say that borrowing (or lending) $1,000 today is equivalent to paying back (or receiving) $1,100 a year from now. Here it is sta...
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CFA Level 1 - Quantitative Methods

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        World of Finance by M.Vijaya Sai Introduction The Quantitative Methods section of the CFA curriculum has traditionally been placed second in the sequence of study topics, following the Ethics and Professional Standards review. It's an interesting progression: the ethics discussions and case studies will invariably make most candidates feel very positive, very high-minded about the road on which they have embarked. Then, without warning, they are smacked with a smorgasbord of formulas, graphs, Greek letters, and challenging terminology. We know – it's easy to become overwhelmed. At the same time, the topics covered in this section – time value of money, performance measurement, statistics and probability basics, sampling and hypothesis testing, correlation and linear regression analysis – provide the candidate with a variety of highly essential analytical tools and are a crucial prerequisite for the subsequent material on fixed...
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