Does FRM really ask such long calculations in exam?
- Thread starter puneet_
- Start date
Hi @puneet_ of course not 
but that exercise contains several basic ideas; e.g., expectation, variance, covariance, correlation. Any one of which is highly testable. It's mostly to illustrate, not to predict an exam question.
The most important correlation "shortcut" is: ρ(a,b) = cov(a,b)/[σ(a)*σ(b)]. Thanks,
but that exercise contains several basic ideas; e.g., expectation, variance, covariance, correlation. Any one of which is highly testable. It's mostly to illustrate, not to predict an exam question.The most important correlation "shortcut" is: ρ(a,b) = cov(a,b)/[σ(a)*σ(b)]. Thanks,
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