AFM RTP Nov 26 Solved | All Practical Questions Step by Step

CA Final AFM RTP November 2026: all practical questions (Q1 to Q11) solved step by step by CA Mayank Kothari. Every answer is checked against the ICAI Suggested Answers, with the reasoning explained so you can handle any variation in the exam. 📥 Free PDF of these solutions + more AFM resources: 💬 Join the AFM Telegram group for doubts & updates: ━━━━━━━━━━━━━━━━━━━━ 📌 CHAPTERS ━━━━━━━━━━━━━━━━━━━━ 00:00 Introduction: AFM RTP Nov 2026 01:56 Q1 Multilateral Netting (International Financial Management) 18:13 Q2 Nostro Account & Exchange Position (Forex Exposure) 35:20 Q3 Project A vs B: Coefficient of Variation (Capital Budgeting under Risk) 46:13 Q4 Cost of Equity & Share Price: Dividend Growth Model (Security Valuation) 56:41 Q5 FCFF Valuation of Alpha Ltd. (Business Valuation) 01:16:50 Q6 Call Option: Replicating Portfolio & Risk-Neutral Method (Derivatives) 01:33:30 Q7 FRA Rate & Interest Rate Guarantee (Interest Rate Risk Management) 01:46:15 Q8 Portfolio Return, Risk & Covariance (Portfolio Management) 02:03:00 Q9 Maximum Price for Acquisition (Mergers & Acquisitions) 02:26:24 Q10 Gilt Fund NAV & Duration Strategy (Mutual Funds) 02:44:52 Q11 14-Day RSI: Bullish or Bearish? (Security Analysis) ━━━━━━━━━━━━━━━━━━━━ ✅ WHAT YOU'LL LEARN ━━━━━━━━━━━━━━━━━━━━ • Bilateral vs multilateral netting and how to compute net transfers • Exchange position vs cash (Nostro) position: which transactions affect which • Why Coefficient of Variation, not Standard Deviation, decides between risky projects • Gordon growth model: cost of equity and share price (and why g must be below Ke) • FCFF forecasting, WACC and terminal value, step by step • Binomial option pricing: hedge ratio (delta), replicating portfolio, risk-neutral probability • Forward rate from the yield curve (2V3 FRA) and how an Interest Rate Guarantee works • Portfolio variance with negative covariance; choices for risk-averse vs risk-seeking investors • Valuing a target for acquisition using proxy Ke and the combined-firm approach • Gilt fund NAV and how to change duration when interest rates rise or fall • RSI calculation with Wilder's smoothing and how to interpret the zones ━━━━━━━━━━━━━━━━━━━━ 📝 KEY ANSWERS (to check your own attempt) ━━━━━━━━━━━━━━━━━━━━ Q1: (b), (d) $200,000, (b) Net Payment $80,000 Q2: (c) £3,40,000, (b) £75,000, (c) 14:45, (b), (a) Q3: CV A 0.146 vs B 0.268, so accept Project A Q4: Ke 22.91% | ₹102.57 | ₹727.09 Q5: Value of firm ₹57,701.04 crore Q6: ₹56.09 (replicating) | ₹56.49 (risk-neutral) Q7: FRA XYZ 5.04%, ABC 6.38% Q8: E(R) 15% / 13.75% / 17%; σ 6.12 / 7.35 / 9.80 Q9: Maximum price ₹59.5774 crore Q10: Gilt Fund, NAV ₹10.55, duration 9.75 / 6.55 years Q11: RSI 34.64, so bearish (PDF Link - ) ━━━━━━━━━━━━━━━━━━━━ 👨‍🏫 ABOUT THE FACULTY ━━━━━━━━━━━━━━━━━━━━ CA Mayank Kothari teaches CA Final Advanced Financial Management (AFM) with a focus on concepts, exam presentation and ICAI-pattern practice. 🔔 Subscribe for more CA Final AFM RTP, MTP and past exam paper solutions. 👍 Like & share with your CA Final batchmates. ━━━━━━━━━━━━━━━━━━━━ CA Final AFM RTP Nov 2026, AFM RTP November 2026 solutions, ICAI RTP AFM Nov 26, CA Final Paper 2 AFM revision, Advanced Financial Management RTP, AFM important questions, multilateral netting, nostro account, FCFF valuation, binomial option pricing, FRA, RSI, gilt fund duration. #CAFinal #AFM #RTPNov2026 #CAMayankKothari #ICAI #AdvancedFinancialManagement #CAFinalAFM