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Hello,
If I state in my “methods used” section that:
– the asset beta of Anatra may not be 100% accurate due to the fact that Cigno is going to unbundle the equipment manufacturing business and absorb only the medical R&D business and therefore an asset beta of both the medical R&D and equipment manufacturing business is not too accurate”Would I gain 1 mark for this?? 🙂
Because even though they tell us how they want us to calculate it, it doens’t make it accurate, just as for example using a 1.2x factor for PE valuation without reason
Therefore, stating these facts should gains us marks, no?
Thank youuu!!
Thanks! 🙂
also, do you know if there is anything new added to AFM technical articles this year? There is no date mention anymore
and sometimes examiners report say to look for new articles added
thanksMany thanks John 🙂
Also, regarding interest rate option premiums, generally if they are annual % we need to do x 3/12 (for 3 month contracts) ?
As in some answers they do in some they don’t… When don’t we?Yes we do multiply by 3/12 as I explain in my free lectures assuming that they are traded options.
If you tell me a question where this has not been done then I will explain the reason.
In Daikon the examiners answer is using tick values and as I explain in my free lectures the tick values are calculated using 3/12. I never bother using ticks and do it without them – it gives exactly the same answer.
In Fitzharris, the answer is calculating the annual % costs and therefore (again as I explain in my lectures) calculating 3/12 in order to get a $ amount is not relevant.
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