Featured Links
TYPE
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Role of risk metrics [foundation] 04 Mar 2010
AIM: Explain the role of risk metrics and discuss the shortcomings of existing risk metrics. Shortcomings of existing risk metrics include: May not scale over long … read more
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Distributions L1 [practice, quantitative] 03 Mar 2010
22. In looking at the frequency distribution of weekly crude oil price changes between 1984 and 2008, an analyst notices that the frequency distribution has … read more
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Why risk is hard to monitor [foundation] 03 Mar 2010
AIM: Describe how firms can fail to correctly monitor and manage risk on an ongoing basis. For a financial firm, even more than an industrial … read more
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Importance of communication [foundation] 03 Mar 2010
AIM: Explain the importance of communication in effective risk management. Communication is important because risk managers have a different job than the board and other top … read more
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Conditional value at risk, CVaR L1 [practice, valuation] 02 Mar 2010
21. A market risk manager uses historical information on 1,000 days of profit/loss information to calculate a daily VaR at the 99th percentile, of USD 8 … read more
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Strategic decisions [foundation] 02 Mar 2010
AIM: Explain how a firm can fail to take known and unknown risks into account in making strategic decisions. Stulz says most unknown risks do not … read more
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How risk can be mis-measured [foundation] 02 Mar 2010
AIM: Describe how risk can be mis-measured. The first step in risk management is to measure risk. Two types of measurement mistakes can be made: Known … read more
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Historical simulation L1 [practice, quantitative] 01 Mar 2010
20. Rational Investment Inc. is estimating a daily VaR for its fixed income portfolio currently valued at USD 800 million. Using returns for the last 400 … read more
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How risk management can fail [foundation] 01 Mar 2010
AIM: Describe how risk management can fail. Stulz says there are six types of risk management failures: read more
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Role of risk management [foundation] 01 Mar 2010
Define the role of risk management and explain why a large financial loss is not necessarily a failure of risk management. The role of risk management … read more
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- David , great stuff , thanks for helping me pass FRM Full exam Nov 2009 , your website is so compelling that even now I keenly … 08 Mar 2010
- You are a recent graduate working with a large financial consulting firm as part of their graduate program. You have spent the previous couple of weeks … 07 Mar 2010
- Great job! Thank you very much! 01 Mar 2010
- Hi David, I am too late for May 2010. Since I would not get much time to study, I was wondering if I can buy the …10 Mar 2010
- Hi David, IIn slide 15, you summarised the firm’s different beta’s to show the hedging irrelevance proposition. My question is how did you calculate the different …09 Mar 2010
- Hi David i think i am missing something…... the formula for duration is (p2-p1)/(2*po*y1-y0) when i use that i get (106.3-105.8)/(2*106.1*.0005)=4.7 half of the answer - …09 Mar 2010