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@David Harper CFA FRM sorry to bother you over this - but if it's not too much trouble, could just this new spreadsheet be uploaded in Dropbox...?

@David Harper CFA FRM Thanks for much for laying this information in detail on the weekend - heartfelt gratitude...am digging into this right now to see what I've been missing ... :-(

@David Harper CFA FRM I have a follow up question on this topic:- The CAPM Model states that :- (Rp- Rf) = Alpha + Beta ( Rb - Rf) + Residual Error So How is the Residual Error = the Tracking Error = Std-Dev( Rp-Rb) when Beta =1 :( Also, is the Alpha = the Active Return =( Rp - Rb) always...

@David Harper CFA FRM Thank you so much - got it !

@David Harper CFA FRM Oh Gosh....completely missed seeing that ! I had already scrolled down and was looking all over the place but somehow overlooked this page ....please ignore ...silly me !! Thank you Thank you Thank you ....one last question on this ....would the Residual Risk always be...

@David Harper CFA FRM Thank you so much for laying out the above in detail and for your patience- my bad - I just had the older BT notes open instead of the new updated one. The new notes clarifies the 2 separate formulas that I was looking for.. An example solidifies the concepts above.Am...

In reference to R8.P1.T1.Amenc_Ch4_RISK_MGMT_Topic:INFORMATION_RATIO_RESIDUAL vs_ACTIVE: The Residual Risk is the idiosyncratic Risk = any risk which is not the Systemic Risk and that Total Risk = Systemic Risk + Residual Risk. Having said that though, I am trying to get the standardized...

@David Harper CFA FRM Thanks so much as usual for putting together this explanation...got the GARCH the EMWA - couldn't be any clearer !! :-)

Can anyone explain what a "Long Run" Volatility is...? I am studying the GARCH Model but not sure what the "LONG RUN" Volatility means....is it Volatility "Over a Longer Span of Time" ..? Am not able to find much articles/resources to explain Long Run Volatility online either... :-(

@David Harper CFA FRM Thanks so very much for the clarification !

@Nicole Seaman @David Harper CFA FRM My bad - but point well taken - I should be like Nicole rightly pointed out referring to the latest study materials. Going forward I will refer to the materials from this year. Thanks to you all once again for all you guys do and hope you have a wonderful...

@David Harper CFA FRM Have a followup question on this :- For scaling down the Rate we use the Day Count Convention= Actual/360= 90/360 and therefore scale down the rate by a factor of .25 and get the quarterly rate of .25(6%) = 1.5% But while converting the Discrete Rate to a continuous rate...

@David Harper CFA FRM Thanks a bunch for sharing your insight on this - Infinite gratitude :-)

In reference to R19.P1.T3.FIN_PRODS_HULL_Ch6_Topic: Euro$ FuturesContracts_Convexity_Adjustments Hi, I am trying to understand why the Futures Rate is = ( 100 - the Euro$ Futures Price) = (100-95) = 5 % ...? Why is : Euro$ Futures- Quote= ( 100 - The 3-month Euro$ Futures- Interest Rate) =>...

@David Harper CFA FRM Thanks so very much David for the clarification. I did want to make sure, if or not we're supposed to factor that in or just consider Feb as 28 days. Now it's clear as the sky :-) Much gratitude :-)

In reference to R19.P1.T3.FIN_PRODS_HULL_Ch6_Topic: DAY_COUNT_CONVENTIONS :- Hi, I was revisiting this topic and have some questions on the example illustrated below. We are using the Day Count Convention= Actual/Actual. The Days Since is shown to be 54 between Jan1, 2012 & Mar 5, 2012. 2012 is...

@David Harper CFA FRM Got it ! :-) Thanks much much much :-)

@David Harper CFA FRM Hi I have a follow up question about the Cash Flows above :- 1) Invest/ lend at the RF Rate and receive $ 10.305 2) Use the cash earned to Buy the Long Forward -> Pay the Forward Input Price : - $ 11 and Receive Spot/Commodity worth E(St) : + $ 10.513 3)Short the Spot/...

@David Harper CFA FRM Thanks so much for your kind words.Definitely needed the boost ;) to egg on and absorb as many of these vital building block concepts - many of which folks take for granted but is a steep learning curve in my case as I come from an engineering background instead of a Fin...

@David Harper CFA FRM Much gratitude. Again such a key insight i) Swap Cash Flows always based on Discrete Rate not Continuous which completely makes sense intuitively as well !! and ii) That Discount Factors never lie - so it does not really matter how we calculated the DF - Discrete or...