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    Results are out!!!

    Passed Part 2 and will enjoy some "learnless" time for a while. :) Thanks once more (I can't say it enough) to @David Harper CFA FRM CIPM and @Nicole Manley ! :)
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    Exam Feedback FRM Part 2 (November 2014) Exam Feedback

    I passed with 3-3-3-3-1, thank you once again David, Nicole and BT guys here!!!! I am still a bit speechless, after the exam I thought I would have to come back again in May. Wish everybody who plans to take the exam in May a lot of success, you can do it!! :)
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    Good Luck on Your Exam Tomorrow!!!!

    Thanks, Nicole and let's hope your message brings us "good karma". :) Good luck to everybody!
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    Basel III questions

    Hm, but in AIM 61 (“Basel III: Global Regulatory Framework for More Resilient Banks & Banking Systems(Revised) 2011") it is stated: "Describe changes intended to improve management of liquidity risk including liquidity coverage ratios, net stable funding ratios and use of monitoring metrics". I...
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    VaR calculation: Short doubt

    Hi, I agree with @hamu4ok , just wanted to point out a minor typo: you wrote: "Daily parameters. daily mu=0.14/2500 = 0.00056", should rather be mu = 0.14/250. But I think this was your intention anyway. :) Best regards.
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    Merton/KMV ND formula

    Hi @southeuro, the formula you have listed is basically the DD (distance to default), which calculates the number of standard deviations between the mean of the asset distribution and the default threshold. Once the DD value is obtained, the probability of default is found by evaluating the DD...
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    Credit Linked Notes (CLN)

    Hi @hamu4ok, re your second question: what do you mean by "how it is distributed"? I have understood so far that the CLN buyer receives only the recovery rate (i.e. the percentage of this recovery rate multiplied by the CLN notional for that respective buyer), so technically a buyer of a higher...
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    P2.T5.412. Exotic options: forward start, compound and chooser

    Hi, as I read the text of the question: the two options don't have the same maturities: for one T = 1, for the other T = 2 ("(T2 = T1 + 1.0 year = 2.0 years")? So they have different time values and so different overall values, if I am not mistaken. BR, Alex
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    P1.T3.414. Mortgages and Mortgage-backed Securities (MBS, Basics)

    Hi @Nicole Manley , being a bit pedantic once more, shouldn't these daily questions begin with P2.T5. as they are related to the Part 2 topic of MBS? Thanks.
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    Hull - Exotic Options

    Hi @hamu4ok , I am not able to view in my browser the picture you attached in your message, could you try a different form of inserting the picture in the message? Thanks in advance! Alex
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    the best sequence to study the AIMs

    Hi, I suggest (from my experience learning for part 1) sticking to the order proposed by the Study Planner: 1- Foundations of Risk Management 2- Quantitative Analysis 3- Financial Markets and Products 4- Valuation and Risk Models (i.e. somewhat different to what you have written). This is...
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    Practice questions

    Hi @anbu.edu, please note that for 2014 in the FRM Part 2 AIMs the following chapters (which you mentioned above) are NOT included any longer: Overview of Private Equity: Stowell, Chapter 16 Trust and Delegation Brown (May 2010) Madoff: A Riot of Red Flags: Detecting Fraud by Investment...
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    We would appreciate your feedback on our survey!!

    Great idea, thanks for the opportunity, have just completed the survey! Best regards, Alex
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    Relationship between forward and spot price

    Hi, this is what I meant in my post above by "the relationships are indeed equivalent", which for me means they are interchangeable. It all depends on what is given in the question, if the data contains the storage costs (u) and the income dividend (q) it's easiest to use this formula Fo=...
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    Relationship between forward and spot price

    Hi @tosuhn, the relationships above are indeed equivalent, as U represents the present value of storage costs (u) and I stands for the present value of the income dividend (q). There are some further explanations/examples referring to the usage of either the equation using the exponential form...
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    P1.T1.60. Sharpe-Lintner-Mossin capital asset pricing model derivation (CAPM; Elton & Gruber)

    Hi @superpocoyo, well, yes, my understanding (at least until now - I have passed part 1 in May, but maybe I have forgotten some things from then) was that CAPM might be considered a "special case" of APT in that the SML represents a single-factor model of the asset price and beta is the...
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    Win prizes for forum participation!!

    Thank you Nicole! :) I'll let the prize accrue. Best, Alex
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    P1.T1.60. Sharpe-Lintner-Mossin capital asset pricing model derivation (CAPM; Elton & Gruber)

    Hi @superpocoyo , answer A is indeed true. Market price of risk is the return in excess of the risk-free rate that the market wants as compensation for taking risk, therefore it is "E(Rm) - Rf" The amount of risk in the security or portfolio is "beta", which is the nondiversifiable or...
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    Win prizes for forum participation!!

    Thank you very much, Nicole! :) Please let it accrue. Best regards, Alex
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    Key Concepts- FRM Level 2

    Hi, well this is one of the questions which (in my opinion) can't be answered with a simple list of topics which will be 100% the most important and on the other hand topics which can be discarded for sure, as the curriculum constantly gets changed. For a starter have a look at the following...