Explanation

• According to OECD principles, institutional investors are expected to disclose their voting policies, voting records, and conflicts of interest.
• This promotes transparency and accountability in corporate governance.
• Institutional investors should exercise their ownership rights responsibly.

Last verified on 14-08-2026

Explanation

• A U.S. firm with €3 million payable in the future should buy a Call Option on Euro.
• The firm will need to buy euros in the future to make the payment.
• If the euro appreciates, the call option allows the firm to buy euros at the predetermined strike price.
• This protects the firm against an increase in the dollar cost of the euro payment.

Last verified on 14-08-2026

Explanation

Duration Gap = D_A - (L/A × D_L)

Here:

D_A = 5 years 

D_L = 2 years

A = 100 million

To get 3.4 years: 

3.4 = 5 - (L/100 × 2)  

(L/100 × 2) = 1.6  

L/100 = 0.8 → L = Rs. 80 million

So with Assets = 100m and Liabilities = 80m:  

Duration Gap = 5 - (80/100 × 2) = 5 - 1.6 = 3.4 years

Last verified on 14-08-2026

Explanation

Annual Coupon = 5% of 1000 = Rs. 50  

Market Price = Rs. 950

Approximate YTM = Annual Coupon / Market Price = 50 / 950 = 0.0526 = 5.26%

Last verified on 14-08-2026

Explanation

• The maximum tax adjustment is 90% of the output tax.
• This means the allowable adjustment cannot exceed 90% of the output tax.
• The remaining 10% represents the portion not adjustable under the stated rule.

Last verified on 14-08-2026

Explanation

• A company means an entity incorporated according to any law.
• A company is a legal entity created through incorporation under the applicable company law.
• Incorporation gives the company a separate legal identity from its owners or members.

Last verified on 14-08-2026

Explanation

• Machine learning in financial analytics is mainly used for predicting trends and detecting patterns.
• It analyzes large amounts of financial data to identify patterns, relationships, and trends.
• It can support forecasting, risk assessment, fraud detection, and investment analysis.

Last verified on 14-08-2026

Explanation

• When a prepaid expense is recognized as an expense, the entry is: Expense A/C Dr. → Prepaid Expense A/C Cr.
• The Expense Account is debited because an expense is now recognized.
• The Prepaid Expense Account is credited because the prepaid asset decreases.

Last verified on 14-08-2026

Explanation

• The Security Market Line (SML) represents the relationship between Beta and expected return.
• Beta (β) measures a security’s systematic risk.
• Expected return is the return investors require for taking that level of systematic risk.
• The SML is based on the Capital Asset Pricing Model (CAPM).

Last verified on 14-08-2026

Explanation

• The value for taxable services is the consideration received or receivable.
• Consideration means the amount charged or payable for providing the taxable service.
• The taxable value is generally based on the amount of consideration for the service.

Last verified on 14-08-2026