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October 21, 2020 at 9:35 am
Also sir just one more thing the Risk free rate of return i understand is basically the rate of return offered by G-Secs, but was curious to know if its exactly the 91days treasury bills rate?
October 21, 2020 at 9:29 am
Sir don’t you think the share is overvalued if its currently giving 8% return(perhaps due to speculation) as opposed to what should be giving i.e. 7.6%? So should not we be shorting the stock instead of going Long?
September 17, 2020 at 10:57 am
Hello John. Thanks for the great lectures. Can you please explain again why the shares are undervalued
August 22, 2020 at 9:41 am
Hi John, Hope you are safe and well.
Can you please tell me how to prepare for theory? Theory as in for AFM and not particularly the above topic.
John Moffat says
August 22, 2020 at 3:33 pm
Listen to the lectures, read all the technical articles on the ACCA website, and most importantly practice all the questions in your Revision Kit and learn from the answers to the written parts (and for past exam questions check on the marking scheme which points were getting the marks).
July 14, 2020 at 6:28 pm
Sorry i am asking this question here can i use revision kit of bpp of previous session.? Like june 2020. I dont think there are changes to the syllabus
April 20, 2020 at 9:51 am
Thank you so much for offering such a wonderful lecture and it really help me to taking P4 in Sep 2020 as the exam entry for Jun 2020 has to be cancelled due to covid-19. Thanks for inspire me to learn and that is a task that my lecturer dont possess even i spent SG 1,200 for the P4 course at the University, Thanks so much John.
April 20, 2020 at 1:02 pm
Thank you very much for your comment 🙂
February 18, 2020 at 7:32 pm
Hi sir, I noticed in the practise kit the risk free rate is also referred to as the base rate. Is there any other name it can be called?
February 19, 2020 at 8:50 am
The risk free rate is not normally referred to as the base rate. There may be occasions when a question refers to a base rate but whether or not this is the risk free rate depends on what is written in the question.
November 6, 2019 at 10:11 pm
Thanks for the lecture. please sir, what is the difference between asset beta and equity beta. And when using CAPM, are we to use asset beta or equity beta
November 7, 2019 at 7:59 am
I so explain this in the lectures that follow.
The asset beta measures the risk of the business of the company, whereas the equity beta measures the risk of the shares (which are more risky because of the gearing).
Which you use depends on what you are doing, and again this is all explained in the following lectures.
February 3, 2019 at 4:14 am
How do i derive equity or asset beta for the remaining business if the company is selling a part of the business. e.g if a company is in food and travel services and total equity beta is 1.5 but the ba of travel is .97. How do i get the equity beta for the remaining company. Please shed some light. Thanks
October 28, 2019 at 6:34 pm
actually there is a whole topic missing in these lectures which is “impact of diversification in the calculation of beta factor and ultimately the calculation of WACC” and it has three cases. its very sad to say that this whole topic is not covered here, making this platform very unrelaible.
October 29, 2019 at 5:36 am
The three cases you refer to were removed from the syllabus several years ago.
Everything relevant for the exam is covered in these lectures.
As regards the comment above yours to which you were replying, this is of course explained in these lectures
July 28, 2020 at 6:09 am
my friend if you are not satisfied with the lecture go else and stop saying nonsense. i passed all the courses i have done using this platform , and Mr john has always be the best tutor .
This is very rude and unprofessional to comment in such manner . For your record many have used this platform and did better than those that went to kaplan or other relevant tuition providers i am a testimony ok my friend
i will advise you to desist from this attitude alright.
January 16, 2019 at 9:58 am
When using the CAPM formula, when inserting the return from the market & the risk free rate, are we to use to whole numbers or percentages in the formula?
It tends to trip me up.
January 14, 2019 at 1:23 pm
Great lecture great notes. I am actually going to retake in March and I found your updated notes are even better. (I used the older version previously). Hope it will be ok this time.
Thanks for your great work.
January 14, 2019 at 1:44 pm
Thank you for your comment, and I hope all goes well for you in March.
October 29, 2018 at 7:33 pm
Hello sir. I have a question relating to the Market premium. Is it possible in real life, that the market premium is negative (ie the market rate is lower than the risk free rate). In this case, what would be the reason for a negative market premium?
October 30, 2018 at 7:49 am
No – the market as a whole will always give a premium above the risk free rate 🙂
October 26, 2018 at 12:53 pm
Thanks a lot. I’m happy you are P4 tutor. Your explanations are the best I’ve ever listen to. I hope I’ll pass P4 in December.
October 26, 2018 at 3:02 pm
December 29, 2018 at 8:25 am
July 31, 2018 at 4:47 pm
I really struggled with CAPM at F9 (or FM), especially the “market premium”, but the way Mr Mophat explains it here is 100% clear and understandable. Incredibly well demonstrated, thank you.
July 31, 2018 at 5:04 pm
Thank you for your comment 🙂
August 30, 2018 at 8:01 pm
Thanks Mr Moffat. You have made my life easier as I prepare for my last paper.I really did not understand what was going on with these gear/ungear stuff
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