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Hello, With regards to GARP text, Book 2, Ch.11 (Non-Stationary Time Series) page.196: I'm trying to understand how to implement the ADF test. In determining the number of lags, what is meant by "it should be large enough to absorb any short run dynamics in the difference ∆Yt"? "Implementing...

Hello, for the LO: "Define and interpret the spread of a bond and explain how a spread is derived from a bond price and a term structure of rates.", I am having trouble understanding this formula on P1.T4.Ch.11 Notes p.7. How come there would be two different forward rates in one coupon period?

Hello, in the BT Notes VRM Ch.6 (Credit Risk) p.17, in both the common standard deviation of loss as well as the ratio of portfolio standard deviation to the size of the portfolio, why does L=1? Is it always 1?

On p.7 of Ch.9's notes (Foreign Exchange Markets) under the Learning Objective "Describe the relationship between nominal and real interest rates", I'm not clear which formula we should be using if given a question. What is the relationship between these two equations, and are they used for...

A bit off topic but, do you think we will need to know how to calculate geometric mean for the FRM Part 1 in October/November 2020?

Hello, I would like some further clarification on the log-linear function that appears on page 5 of the Ch.11 materials: GARP's Ch.11 materials writes the formula differently so i'm having some trouble reconciling. Forgive me if this should be something basic or intuitive (I don't remember...

Hello With regards to P1.T2 (QA) Ch.6 (Hypothesis Testing) Notes: in the "Identify the steps to test a hypothesis about the difference between two population means" (p.28-29) where does the 0.78 and the 1.02 come from? I feel like i'm missing something.