CFAI text V6 P.350 Q25 & its solution on P.366 What is the difference between the "Beginning Capital (C0 : 8,000,000.-) & Beginning Market Value (MV0 : 7,450,000.-) ? Anyone can advise ?
Any response ?
Don’t have the text at the moment…
Any other response ?
The beginning capital is just what is invested- at the beginning. May not be on that date but invested at the beginning. MV is just that MV of investment. Think about it as the paid in capital at the beginning- may be paid in in Jan. but sitting there in cash. Property in then purchased and have a MV of 7450.
derswap07, TKVM for your explanation regarding “Beginning Capital & Beginning Market Value of real estate investment”. BTW, would you please kindly respond to my questions regarding “Global Performance Evalustion” posted under the title of “CFAI Text Vol. 6”. I will like to have your confirmation about the different terminologies & others used in Schweser & CFAI text as I think you shall have a good understanding. You are appreciated !