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  1. LeeBrittain

    Securitized assets

    Hi David, Do the FRM AIM's this year require us to know how the different versions of Basel deal with the risk weightings/methodologies (i.e. RBA)/etc. used for securitized assets? If so, are there any links/notes that describe how Basel deals with these assets? I'm pretty confused at the...
  2. LeeBrittain

    Critical z-scores for bid-ask spread component of LVAR

    Hi David, In your notes you specifically mention that we should assume a one-tailed test for the z-score component when we are valuing the exogenous spread cost, however in the Schwesser practice exams they use a two tailed score. I assume that they are incorrect in using this? Has GARP...
  3. LeeBrittain

    FRM Part 2 vs. Part 1 time pressure

    For those of you who have taken both parts, did you feel that Part 2 was easier to complete on time? I.e. you have 80 questions in Part 2 vs. 100 in Part 1, and more of them in Part 2 are conceptual in nature? Or are the 80 questions more difficult and time consuming in part 2 than the 100...
  4. LeeBrittain

    Basel readings

    Hi David, If our interest (in Basel specifically) is solely for passing the exam, do you recommend reading the hundreds of pages of readings the FRM assigns or should your notes suffice? Does anyone know if past questions on the exam about BASEL have been more mathematical or conceptual in...
  5. LeeBrittain

    Bid/ask spread reflecting endogenous liquidity risks

    Hi David, I'm working through the practice questions on Dowd Chapter 14, and on problem 7.4, why is it that answer C is true? I.e. how does the bid ask spread reflect endogenous liquidity risk? Is this because with some scenarios, like with level II quotes, you can not only see the bid ask...
  6. LeeBrittain

    Tier 1 vs 2 vs 3

    Hi David, I purchased FRM Part 2 from your site in early January. At the time, I think your older pricing structure was in place so I don't believe that I could have chosen between any tiers. Am I "grandfathered" in or will I need to upgrade to see new videos that come out (i.e. access...
  7. LeeBrittain

    Bond Duration and Convexity

    Hi David, Out of all the topics covered in Part 1, this topic seems the most difficult for me to grasp for some reason. Which formulas are the most appropriate to use for duration and convexity and DV01? It seems like to me that the formulas used to calculate duration and convexity are...
  8. LeeBrittain

    Lease rate

    Hi David, I found two full length practice exams online, and in one practice exam they ask for the fair value of a futures contract given the spot price of wheat, the contract price, the risk free rate, and the "market rate of interest." Apparently the market rate of interest is extraneous...
  9. LeeBrittain

    Rate of return distributions

    Hi David, In the study notes, for rate of return distributions, you have the return distribution as: (mean - variance/2, standard deviation/ square root of time). In Chapter 4 of the Valuation and Risk Models book that is provided in the FRM, this distribution is described as (mean -...
  10. LeeBrittain

    # of Ethics questions

    Hi David, I found two full length practice exams online, and both of them have several ethics questions that are ridiculously picky (i.e. one would have to memorize most of the ethics chapter to get them right). Can we expect several questions on ethics to appear on the exam? Thanks, Lee
  11. LeeBrittain

    Level 1 Question breakdown and passing criteria

    Hi, Is there any sense as to how many of the questions will be mathematical in nature vs. conceptual in nature? Is a good strategy to answer all of the conceptual questions first since they should take less time on average to answer than the mathematical questions? Is the pass/fail criteria...
  12. LeeBrittain

    Practice Question Sets for Part 4?

    Hi, The only practice problem sets I can find for Part 4 are for Hull Chapters 11, 13, and 17? Have the problem sets for the remaining chapters in part 4 not been put on the site yet? Thanks, Lee
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