Search results

Hi David, Thanks so much for you help with preparation. You're the best! Will surely recommend your excellent services to others. Warm regards, :) John

JoP Covered it pretty well. The second half of the exam had very long questions (lots of reading before getting to question). I thought the exam was somewhat difficult. It tested on very exact details on some topics and Basel II, some current events. The questions I list below are mostly the...

Hi David, After migrating to the first state, you migrate to D. It looks like matrix multiplication of Row B X Column D. Is that a correct way of interpreting the calculations? John

Hi David, I'm not sure how to read the transition table in question 28. The question states: For a company starting with rating B in year 1, calculate the default (rating D) probability for year 2. Starting Ending A B C D A...

Hi David, Thanks for the quick response! I thought so, that VaR is one-tailed. When q36 used 1.96 it confused me. I hope there aren't too many of these errors on the practice test. John

Hi David, While reviewing practice questions, I'm so confused about when to use the one-tailed or two tailed test. For example in the 2008 FRM practice test 1 question #36 used 1.96 for the 95th percentile VaR and in question #37 1.645 is used for the 95% surplus-at-risk. Is...

HI David, A $20 million portfolio consists of only two equally-weighted and uncorrelated positions in Assets A & B. Asset A ($10 million) has a volatility of 10% and Asset B (also $10 million) has a volatility of 20%. At 99% confidence, what is an approximation of the incremental VaR given...

Hi To David's response " ...a bank may mix AMA with BIA/TSA but I’ll defer to a specialist on such exceptions)" In the U.S there are a handful of banks (core bank) that are required to implement AMA. "Less sophiscated" banks can "Opt-in" for the AMA approach. For the core banks, they...

Hi David, After some googling, I found a page that answers my question, http://www.educalc.net/140726.page It's exactly like the TI, except that the last step you press i. The hp takes several seconds before it shows the value. I heard that the TI computes much faster without the...

Hi David, I noticed that in Tuckman Chapter 3 notes (page 112) you show how to calculate YTM using the TI caculator. I have the HP 12c (not familar with functionality). Do you think you can show how to perform YTM calculations on the hp 12c. Thank you. John