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Has anyone seen sample questions on Jensen's inequality? I am just wondering if we have to know it for part II. Would appreciate feedback. Best, S

HI David, There are a lot of differences between Basel II/III and Solvency II (insurance). Do we have to know them all. I am just wondering given the time left to exam, if I should concentrate on memorizing them or not. Please advice. Best, S

The capital structure of HighGear Corp consist of two parts. one 5 yea bond with FV of $100M and the rest is equity. The current MV of the firm assets is $130 and the expected rate of change of the firm's value is 25%. The volatility is 30%. The firm's risk management division estimates the...

Hi David, Question number of 7 of FRM exam 2012: You are evaluating the credit risk in a portfolio that has loan a and b. you are interested in the risk contribution of each of the loan to the unexpected loss of the portfolio. Given the information in the table below, and assuming that the...

Hi David, Lin Ping is valuing a 1 year CDS which pays the buyer 75%. PD is 5%. RF is 3%. Assuming defaults can only occur halfway through the year and that the accrued premium is paid immediately after default. What is the estimate. 380bps 385bps 390 bps 400 bps Would you please explain the...

Hi David, I don't understand how you came up with the answer. Can you explain the deductible part and where you get 12.5 from? Do we have to memorize the risk weights? Many thanks, S =============================================== B5.3. If a bank retains the equity (junior) tranche of a...

Good morning David and hope you are well. I have two general questions please. I see some comments referring to your formula sheet for FRM 2? where is that saved? I am sorry, but have not been able to locate it. Would you please let me know as I think that would be very helpful. With respect...