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Hi David, Thank you for your reply. Really appreciate it. Hi Nicole I did a search on the key word “probability of default” & “transition matrix” before I post this question. I could not find questions related to incremental probability. After David’s explanation, I am relieved and assured...

I have another questions: Bank ABC wants to estimate the probability of default of a bond rate Aaa. Probability of default in Year 1 is 2% and Year 2 is 3%. Q1. What is the cumulative probability of default in Year 2? suggested solution: 1 - (98%*97%) = 4.94% . probability the bond will...

Hi David Yes, you are correct. I read about this question in one of our local risk management exam papers and find it difficult to differentiate between "....default in 3 year" and "... default on the third year"? I posted it here because I want to grasp the concept behind these questions...

Hello Can anybody help to guide how to answer these questions? Thank you. Edited by Nicole to include questions (please include questions in text format instead of an attachment): 1 What is the probability that a firm rated A will default in 1 year? 2 What is the...

please add me: +60123887523. Thank you.

Good day David I'm confused with the terms risk appetite, risk limits, risk capacity and risk tolerance. To clarify my confusion, I've drawn an illustration. Please refer to the file for my question. Can you help confirm my understanding? Thank you.

Can BT explain how to differentiate the terminology use for Study Notes 2013P1 : Valuation vs 2012.T4 Valuation. What is the meaning of T4 and P1? Practice Questions Example: P1.T2 Quantitative Analysis - P1 refers to Part 1 and T2 refers to Topic 2 i.e. Quantitative Analysis? P1.T1...

Hi David I'm not able to clearly differentiate risk appetite vs risk tolerance? Would you be able to help clear this confusion? What about risk capacity? It's risk capacity = risk tolerance? Thank you.

What is the meaning of risk profile?