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Thanks David. It is clear now. The worked example makes it really easy to understand!

Hi, I have a question on the assumptions behind Yield-To-Maturity. I have read the Yield-To-Maturity (YTM) chapter on the Tuckman (chapter 3 on my edition) that explains why YTM is a measure of the realized return to maturity of a bond. My understanding of the explanation is as follow: If...

Thank you David. That's exactly what I mean. Without an explicit indication of the compound frequency and of the type of yield , the generic concept of yield/yield curve is not precise.

Hi everyone, When I think about yield curve I get really confused on how yield/rates are reported on the curve. In this article for example: https://blogs.cfainstitute.org/insideinvesting/2013/01/07/i-can-tell-what-interest-rates-are-supposed-to-be-in-the-future-can-you/ The basic chart at...

Thank you David. I think I understand, but can we solve this using the conditional probability formula? i.e. P(A|B) = P(A∩B) / P(B) where P(B) = 0.0125 and P(A|B) = 0.01 Or this does not make sense?

Hello, Here there is a really good explanation of why VaR does not satisfy the sub-additivity condition of coherent risk measures: http://www.risk.net/risk-magazine/technical-paper/1506669/var-versus-expected-shortfall (If the page does not load try to stop the loading and then refresh it)...

Thank you very much David.

Hi David, I have started the review (Part 1 Exam on the 17th) and I am looking for the best way to test my knowledge, but I am not sure I'll have time to do all the exercises available. So far I have completed only the global topic drills for the 4 sections. Based on the fact that I have a...

Thank you for the explanation David!

Hi, I have done the Miller question set (T2.301 - T2.308). For some of the exercise is required to calculate integrals and derivatives. I understand that they are pretty basic and that they support the comprehension, but my understanding is that there are no querstions in the FRM part 1, which...

Hi Alex, Thank you for the explanation. I think i understand now. I was a bit confused at the beginning because of the default rate and also because on my text the formula for the standard error is actually Std Error = Std Dev/SQRT(n). Thanks, filip

Hi, I red the explanation in the thread, but I still can't understand the trick of the Standard error in 209.1. I do not understand how do you go from n*p(1-p) to p(1-p)/n ? Why do you divide by n^2? Could someone please point me in the right direction? Many Thanks

Thank you for the clarification. So what I am wondering is why GARP left the 2 questions in the official material of 2014. They give you only 10 sample questions for the entire Quantitative Analysis book and 2 out of these 10 are not relevant... I understand the one with the square root rule...

Hi, Could someone please explain the answers to these 3 questions in the second book af GARP official material (Quantitative Analysis)? 6. You simulate the price path of stock HHF using a geometric Brownian motion model with the fiollowing parameters: Drift = 0 Volatility = 0.2 Time step =...