Hoorays to David and the forum member! I am indebted to all of you.I scored all in 1st and 2nd quartile; 1st quartile in Foundations of Risk Management, Quantitative Analysis,Market Risk Measurement and Management , Valuation and Risk Models,Credit Risk Measurement and Management and Risk...
David,
Based on "Price levels are lognormally distributed. If LN(tomorrow's price/today's price) is normally distributed, then [tomorrow's price] is lognormally distributed."
Is there not a difference between lognormal returns versus lognormal prices?
Is there an implicit assumption that...
Hi David,
Badly worded questions worry me. Some past exam questions are picky about certain distinctions in concept and wording, but glare over some in the chosen answer. I hope you understand what I mean. Do you ever get copies of exams or is there a chance to contest or protest badly worded...
Hi David,
Generally in 95% VaR, it is said that it can cause 5% exceptions say in 252 tests ~12.6 or 13. Normally we take 1.65 normal deviate and check it out. In the calculations in Jorion table 6.2 calculates this using the scheme to be less than 20. The number is actually 19.4.
1. why is...
Hi David,
Since market portfolio does not exist in the real world. Even the riskfree rate is not truly exist. So how do people calculate CML and beta, or they dont? Is it all just academic concept? In real world, would people use just any discount rate for the portfolio of risky assets and...
Hi David,
I was reviewing material on your site, in particular the link http://www.bionicturtle.com/learn/article/volatility_practice_webinar/.
What I am noticing, in the spread sheet there in cell D30 uses ln(760/740) for daily volatility. However, the Hulls book says that it is...
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