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Thanks again! Quite clear, conceptually and semantically! :)

Thanks much David for such a prompt response! So, I believe, only in case of sample mean I would use Z statistic else Z critical should serve the purpose.

Hi David, This certain confusion has cropped into my mind: Under what circumstances would I use Z critical (X - mean/std dev) against Z statistic (Sample mean - population mean/[population variance/square root(sample size)]). This is regarding P1.T2.71.3. Please help! Thanks much..

Thank you so much David for the detailed explanation! Things are quite clear now :)

Hi David, In continuation to my above question regarding IR, for P1.T1.32.1, I am wondering why 10%-8% (the active return) should not be taken? (Adding question details for quick reference: 32.1 Make the following assumptions: Riskfree rate is 3% The benchmark is the market (i.e., CAPM) and...

Hi David, I am struggling with information ratio concepts: I looked at the tabular example in the video and understood most of it with the exception of Information ratio. Could you please share the calculation details for both approaches - alpha and active return? - When Tracking error is not...

Hi David, Nicole Can you please post the answers to the above questions? I attempted these questions but missed on sharing my answers :( Also, is Q1 part of L1 2014? VaR Mapping, as AIMs show, is part of L2. Just want to make sure if I am missing something! Thanks much..

Hi, here are my answers: Q1 - B Q2 - C Q3 - D Q4 - C Q5 - B

Thank you so much David for the detailed explanation! It is so amazing to see that you explain such tricky basics with so much ease! To your point re Simple Interest, I can see it has been used, specifically for short term instruments. To be more precise, its just the interest calculated using...

Hi David, I am certain that you might be quite caught up at this time with lots of updates/additions but can you please take a look at this when you get a chance? Thanks much!

Hi David, For some instruments like - FRA, Eurodollar Futures, IRS - I noticed that simple interest has been used even when the questions say - interest rate is quoted with semi annual compounding (e.g. Hull's example 7.2 for IRS valuations in terms of FRAs). I am quite confused now as to when...

Hi David I got my FRM 2008 result and thanks to your well defined result oriented program, I have passed the exam. With limited time in hand your product is the best available in market. The way you explain complex topics with such an ease is exceptional. I owe this one to your AIM(L.O.)...

Ah I know what I missed. I was considering this option as option on a stock. But it is actually option on another fixed income instrument. so by writing, market maker stands to lose money if rates fall

Hi David I got confused with the explanation of DV01 hedge by 1. Writing call option 2. Long on zero coupon bond If rates decline, value of call option would decline. It should not affect the option writer adversly. Infact it might be better for the writer as that chances of option...

Just noticed that the book does have an errata - of course, it does not have the one listed above, though. http://highered.mcgraw-hill.com/sites/0072970928/student_view0/textbook_errata.html

Got it. Thanks

Hi David I have a question regarding the Duration explained in the screencast. You explained Duration = (V2 - V1)/2*(V0)*(Y2-Y1) However the Tuckman text defined it as Duration = (V2 - V1)/(V0)*(Y2-Y1) Am I missing something here? Thanks Atin