Search results

BTW, actually you can use beta to calculate the optimal hedge ratio too (and this is the more convenient way to do so if hedging a stock portfolio using index futures). β = cov(x,y)/var(x,y) = ρ(σx/σy) So you may use β(σf/σs)(Δs/Δf) also. FRM part 1 does contain this topic. So I think you have...

It's just my guess. If you want to optimally hedge jet fuel by using crude oil futures and heating oil futures, firstly you gotta determine which futures has a higher correlation with jet fuel spot. Suppose you find the correlation of crude oil futures and jet fuel spot is 0.7, while the...

I ever read a magazine called Risk Professionals last year. The magazine contained a survey on Certified FRMs' average salary sorted by different job positions. But by that time the magazine's data was up to 2010 only. See if this helps you anyway.

To alina, Covariance always involves 2 random variables. Variance always involves 1 random variable. So you can say the variance of X as var(X), the covariance between X and Y as cov(X,Y). Note that cov(X, X) = var(X). This means the covariance between X and X itself is just its variance.

To Anas28, Certainly you can achieve this from now on. Just try hard to do probaility/statistics exercises in 1 month. It works for part 1.

Just for everyone's information, for part 1 candidate, try to train yourself such that you can do a probability/statistics question within 30 seconds. If you can do this, you can finish part 1 within 3 hours very likely (including rechecking your susceptible answers). Believe me or not. The...

I am a Macau citizen. I also got both passed simultaneously in November 2012. But I could tell you that luck plays the role at least 50% if you really want to hit two birds in one shot. I don't have the same confidence to get it succeeded if I'm asked to redo the exam again. I will say, part 1...

I'm not sure if it is the case in the US or Europe, but FRM is an increasingly popular qualification among the investment community in Hong Kong and China. There're many examples of fund managers and analysts being both CFA and FRM as well. So I don't think FRM will be steroetyped as risk...

Not yet, I think mine will be mailed after 15/4. But since I'm living in Macau I think it will take 1 month to arrive at my home. FYI, FRM cert distribution has several time slot. The most recent one is on 15/4. You can check that in GARP's website. BTW, does anyone know will the cert be...