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Hi Suzanne, Is new readings for P1T1 are: Corporate Governance Perspective and Information risk and Data Quality Management. In the updated notes you have added only the first topic. Should we expect to get the second one in the future? Thanks

Hi David, I'm really grateful for your hard work on updating the notes. Do you think you would enough time to distribute additional practice questions on the updated material which was not included in the previous notes? Thanks

Thanks David for your reply, if I understand correctly for part 1 exam the changes are going to be in T3 and T4?

Hi Suzanne, I went through the questions-answers here, and I'm a little bit confused regarding the update of the notes from 2012 to 2013 exam. I purchase P1 Tier 3 package one month ago and I appreciate if you could tell me if there are any changes in the study notes. Thanks, Orit

Hi David, The formula to calculate the SE is given by: StdDev*SQRT(1/2T). Can you explain what do you mean by calculating the relative error in VAR? Thanks, Orit

Hi David, The exponential distribution is used to model the time we have to wait until the next event. So, if for example x=4 years and Lambda=1% , the cumulative probability is 95.123%, it means that the probability that next event will take place in the next 4 years is 95%. If we use 1-p% we...

thanks a lot!! now its clear

Hi David, Can you please clarify a point regarding this question: If the true probability of default is 1%, the entire sample default is n*p it means that since the bonds defaults are i.i.d the average default rate increases when the sample size n increases. In this question the default rate is...

Thanks David, now it's clear

Thank you David!! it is really challenging to understand that this question relates to a sample of 5 stocks..

Hi David, Can you please help me to understand the rational behind the calculation, in particular: Why do you divide the annual volatility 10% by five to get the five year horizon? what do you mean by the volatility of the average? (I don't recall from our study notes that we simply divide the...

Thank you David, now its clear!!

Hi David, I was really struggling to find the formula for: Cov(G,P)=Cov(G,0.5G+0.5S)=0.5Cov(G,G)+0.5Cov(G,S) Based on the notes: Cov(G,P)=Var(G)+Var(P)+Cov(G,P) Var(G) - is the Cov(G,G) but I don't understand the rest of the formula Can you please explain the rational? Thanks, Orit

Thanks David

Hi, Should we expect more practice questions toward the FRM exam in may 2013? Is the material updated for the FRM exam in May 2013?

hello David, Im studying for the FRM exam part 1, and I would appreciate if you elaborate on the two topics below taken for foundation 1.a: 1. compare and contrast valuation and risk management using Var as an example 2. describe advantage and disadvantage of Var relative to atop-loss, notional...