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Hi @Deepak Chitnis, Thank you so much again for your prompt follow up! If the question is asking people to calculate that conditional probability, in my opinion, the wording of the problem statement needs to be improved. What do you think?

Hi everyone, I have one follow up question. The question #33 is: An analyst estimates that the hazard rate for a company is 0.16 per year. The probability of survival in the first year followed by a default in the second year is closest to: a. 11.62%. b. 13.63%. c. 14.79%. d. 27.39%. The...

Hi @Deepak Chitnis, Thanks a million! I just downloaded the new version and the answer in the new version exactly matched my answer. I will use the new version going forward.

Hi David, Could you kindly have a look at question #8 in the 2016 FRM Part II Practice Exam and tell me whether answer c is truly correct? I think is that surplus change should be -650*40%-320*1.8%*13 because the bond value will increase as the government cut the interest rate (asset decreases...

thanks

Thank you so much, David! I got it.

Sorry I still have trouble in understanding the lognormal VaR calculation method. Could you confirm with me that the VaR calculation method shown on the "2016 Financial Risk Manager Examination (FRM) Part II Practice Exam" is not correct? The annual mean and volatility of a portfolio are 12%...