CMA Final · June 2026 · Paper 14
CMA Final Strategic Financial Management June 2026: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICMAI; read them on ICMAI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 2(a) | 7 | Project NPV with varying capacity utilisation, tax depreciation on reducing balance and staged working capital | Investment Decisions, Project Planning and Control |
| 2(b) | 7 | Structuring deferred and ballooned lease rentals to earn a target pre-tax return | Leasing Decisions |
| 3(a) | 7 | Choosing between risky projects using joint probabilities, expected cash flow, dispersion and risk-adjusted discount rates | Evaluation of Risky Proposals for Investment Decisions |
| 3(b) | 7 | Intrinsic value of a share using a two-stage dividend growth model and comparison with market price | Equity and Bond Valuation and Evaluation of Performance |
| 4(a) | 7 | Intrinsic value of a redeemable bond versus its market price to judge under or over valuation | Equity and Bond Valuation and Evaluation of Performance |
| 4(b) | 7 | Comparing two mutual fund schemes using returns, Sharpe and Treynor ratios | Portfolio Performance Evaluation and Portfolio Revision |
| 5(a) | 7 | Beta from covariance and CAPM required return to judge whether stocks are fairly priced | Asset Pricing Theories |
| 5(b) | 7 | Realised and expected portfolio returns with probabilistic prices and Treynor ratio comparison | Portfolio Performance Evaluation and Portfolio Revision |
| 6(a) | 7 | Hedging an equity portfolio with index futures: number of contracts and hedge outcome in two market scenarios | Forwards and Futures |
| 6(b) | 7 | Designing a fixed-for-floating interest rate swap with intermediary commission and sharing of gains | Swaps |
| 7(a) | 7 | Cross rates from two-way quotes, arbitrage check and appreciation or depreciation of the rupee | Foreign Exchange Market |
| 7(b) | 7 | Forward hedge versus money market hedge for a foreign currency payable and a receivable | Foreign Exchange Risk Management |
| 8(a) | 5 | Business function dimension of the digital finance cube | Digital Finance |
| 8(b) | 5 | American depository receipts: concept and advantages | The International Financial Environment |
| 8(c) | 4 | Parties involved in a securitisation transaction | Securitization |
What stood out
- Section B was almost entirely computational: only Question 8 (5+5+4 marks on digital finance, ADRs and securitisation) was theory.
- Portfolio and valuation topics led the written section, with share and bond valuation, mutual fund and portfolio performance ratios and CAPM pricing filling four parts.
- Derivatives and forex together carried four parts: index futures hedging, an interest rate swap, cross-rate arbitrage and forward versus money market hedging.
- Investment decisions appeared in both sections, from NPV under staged capacity to risk analysis with joint probabilities and lease rental structuring.
- The MCQs were calculation-heavy (MNPV, sensitivity, RSI, bond value, unlevered beta, cross rates), so the 30 MCQ marks also needed working time.
Practise the chapters that carried the marks
Equity and Bond Valuation and Evaluation of Performance, Portfolio Performance Evaluation and Portfolio Revision, Evaluation of Risky Proposals for Investment Decisions: study guides and practice questions in the CMA Final format.