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Hi David, Logged in today and was amazed with the new website.The look and feel is very nice and also it is easy to navigate .Complement s to you on the great work . Regards Ravi

Hi, I read a interesting article about Copulas and it's role in the present crisis.Pasting the link below.Should be of interest to everyone http://www.wired.com/techbiz/it/magazine/17-03/wp_quant?currentPage=all Regards Ravi

Hi, When i see some candidates ask about "Market Perception" - would an employer be keen to recruit a candidate who has passed FRM exam in New Format or would still holistically view them on par with those attempting Full FRM exams , I am really keen to know David's opinion considering his...

Hi, I want to buy one good book on Credit Risk and I was looking at "Credit Risk Measurement" by Saunders and Linda Allen . Is it a comprehensive book or is there some other book that you suggest . Also is 2nd edition the latest for "Credit Risk Measurement" Regards Ravi

Hi David, Thanks a lot for all your help . I passed . I did put in the effort but the exam was itself very different from what I expected. I am happy I passed and thanks for your help once again . I will continue to visit Bionic Turtle to keep myself updated on the latest happening in Risk...

Hi David, Was out for a few days after the exam and had no access to the net . Would like to thank you for the course .It really helped me a lot and my knowledge levels have increased , in large measure due to you .Your screen-casts and excel sheets were excellent. The exam went...

Hi David, Referring to 2007 , investment round 1 -question 12 . You have asked the optimal structure of a firm strikes a balance between which two costly extremes. The explanation is : "At the one extreme is 100% equity-financed company. Equity is more costly than debt, so this firm...

Hi David, List of questions where "I don't get it" is growing as exam approaches :down: .( A bit disappointed about the Flash Quiz because there are no reliable set of questions to practice on which cover all the AIMS and since you are best teacher I have come across your questions would...

Thanks, useful formula to remember.

Hi David, The investor is short the bond , as he has transferred the credit risk to default swap seller . He pays a premium of 19% for this.He also gets 20% from the bond.So he shorts the bond and buys a default swap . He is making a profit of 1% as long as bond does not default .Is this...

I read this once .Theta gives a measure of an options extrinsic value getting reduced. Hence all things equal an option with more days to expiration will have more extrinsic value then one nearer to expiration. Since the above option is closer to expiration it extrinsic value gets reduced more...

Hi David, I would have selected Theta because ATM option has highest extrinsic value and hence will loose more value over time. Also Theta is higher if option is closer to expiration. So why not Theta? Ravi

Hi David, This is regarding question 32 and 33 in practice exam II .It says RAROC=Profit/Risk Capital and Risk Capital =VaR . My understanding all along has been that the denominator is EC for RAROC calculation which is VaR-EL . FRM says denominator is RC=VaR . Also I am not familiar...

Hi David, i did not get this formula for the question: Suppose a 20-year annual coupon bond has a DV01 of 0.14865. Also suppose a 12-year annual coupon bond, which will be used as the hedging instrument, has a DV01 of 0.09764. If the yield beta is 1.10, which of the following...

Hi David, Regarding Sortino ratio I am not clear on what the denominator represents. Went through Wikipedia and it saysdenominator is the downside risk "The downside risk is the target semideviation = square root of the target semivariance (TSV). TSV is the return distribution's...

Hi David, I may have missed out on lognormal and jump-diffusions but I wanted to understand the difference and when they are applied. -For foreign exchange rates in major currency we use lognormal and for emerging currency jump-diffusions. -Interest rates in developing economies...

It is working fine now thanks

Hi David, When I play this screencast on Operation Risk Basel II (one you posted on 24th October) it stops at 3:51 minutes and I am not able to proceed . Is there a problem with the screencast because other screencasts play properly on my system so I guess my system is ok Ravi

Hi David, I wanted to check with you on when you will be publishing the CRAM sessions and the other flash quizzes. How many more rounds of quiz can we expect? From what I see from 2007 you have 3 sets for each section of risk and some random sets. When do you feel all this will be...

Hi David, In the Ho and Lee convexity adjustment, I wanted to understand how you get the continuously compounded futures rate. Are you using the formula m*ln(1+Rm/m) . If yes what is the logic of taking m=365/90, I took m=4 and I got slightly different results. How relevant is the...