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1. ### Happy Birthday David Harper!

Happy Birthday David Harper!

Hi @gargi.adhikari did you tried solving this, with converting dividend yield to continuous? I tried this and I got answer 1313.06521, I think difference is not that much, that's why they are not converted(my logic, @David Harper CFA FRM can elaborate more!). On actual exam I don't think there...
3. ### Happy Birthday David! Thank you for creating this forum and for such great study material

Happy Birthday David! Thank you for creating this forum and for such great study material
4. ### Out of the Office for Thanksgiving

Happy thanksgiving @David Harper CFA FRM and @Nicole Seaman. Enjoy your holiday:)!
5. ### GARP.FRM.PQ.P1 Interest rate parity (garp13-p1-6)

Hi @Angelinelyt you are assuming rate are continuously compounded, but rates are discrete compounding, read question carefully it says 4% rate per year, it means you should use formula Forward = Spot x (1+domestic interest rate)/(1+foreign interest rate), so 1.25*(1.04/1.07)=1.21495 or round to...
6. ### GARP.FRM.PQ.P1 Interest rate parity (garp13-p1-6)

Hi @Angelinelyt Ft =S0 * e(r-rf)T should be used when rates are continuously compounded and, Forward = Spot x (1+domestic interest rate)/(1+foreign interest rate) should be used when rates are discrete compounding (yearly, half yearly). Hope that helps you! Thank you:)!
7. ### GARP.FRM.PQ.P2 hazard rate (garp16-p2-33)

Hi @frmqiu it is conditional default probability it should be calculated as default in 2nd year - default in 1st year/survival in 1st year = 0.27385-0.14789/0.85214=0.14782. Hope that helps. Thank you:)!
8. ### PQ-external Hedging, Bonds & Yield Based Hedging

Answer of 3rd question should be C, because 44.9*1.0137=45.52 and 45.52-44.9=0.61513 or 0.62 simply means we have to sell additional 0.62 to hedge position completely. Hope I am right. Thank you￼:)!
9. ### Win prizes for forum participation!!

Thank you so much @Nicole Seaman please let it accrue. Thank you:)!
10. ### GARP.FRM.PQ.P2 asset vs liability (garp16-p2-8)

Hi @frmqiu I think you are using old practice exam. David has reported garp this issue and garp has updated many of the answers, I can see A as a answer in my practice exam. Try to download it again. Thank you:)!

12. ### Win prizes for forum participation!!

Thank you so much @Nicole Manley. Please let it accrue. I appreciate it! Thank you:)!
13. ### VaR Confidence level to get non-zero VaR

Hi @emilioalzamora1, as you know var is the worst expected loss. As question stated there is 1/90 chance of lossing 1000000 that clear means that var is non zero because there is some loss chance. Confidence level is estimated as 100%*(1-p), chances/probability is given as 1/90. Hope that...
14. ### Congratulations!!!!!!

Congratulations!!!!!!
15. ### PQ-external Question about definition of component VaR

Hi @no_ming you are right! (for more clarrification view https://www.bionicturtle.com/forum/threads/individual-var-vs-component-var.1373/). In this question you do not need to apply defination of component var here ( I think question wil clearly ask you to calculate component var, not sure...
16. ### PQ-external Question about definition of component VaR

Hi @no_ming what I understands from question is that what will be the reduction in portfolio var? We are not asked portfolio component var here. They are simply asking if you drop the asset 1 from portfolio what will be reduction in portfolio var they are not asking what will be portfolio var...
17. ### Win prizes for forum participation!!

Thank you so much @Nicole Manley please let it accrue. Thank you:)!
18. ### Week in Risk Week in Risk (ending August 14th)

Hi @David Harper CFA FRM Thank you for sharing this. I wonder how do you manage your time and do all the work (including forum support)! Thank you for everything:)!
19. ### How to Keep Loans Performing: Business Snapshot 2.3 Hull/RMFI

No problem @brian.field it happens many time with me, then I have to change it back:D!
20. ### Win prizes for forum participation!!

Thank you so much @Nicole Manley :)! Please let it accrue. Thank you:)