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  1. superpocoyo

    Q&A Appendix

    Thanks, Nicole. Is it possible to obtain a copy of the slides for P1-1 Topic Review video please. Lots of useful exam examples in this video. Melody
  2. superpocoyo

    Win prizes for forum participation!!

    Thanks, Nicole! I would like it accrued, until I pass the FRM exams :) Melody
  3. superpocoyo

    Jorion's Definition of "Financial Risk"

    Hi David, Thanks very much for your explanation. It makes sense to me now. Melody
  4. superpocoyo

    P1.T1.60. Sharpe-Lintner-Mossin capital asset pricing model derivation (CAPM; Elton & Gruber)

    Thanks @Alex_1 & @Miss FRM I am confused by the meaning of "Market Price of risk" here. I always know [E(Rm) - Rf] is called market risk premium, never come across "market price of risk". @Alex_1, can I treat "beta" as a factor sensitivity in the APT model? If [E(Rm) - Rf] is the "market...
  5. superpocoyo

    zero-beta CAPM

    Hi, I do not understand why zero-beta CAPM do not has all investors holding the same portfolio in equilibrium? Can anyone help on this? Thanks Melody
  6. superpocoyo

    P1.T1.60. Sharpe-Lintner-Mossin capital asset pricing model derivation (CAPM; Elton & Gruber)

    Hi David, I do not fully understand for Q3, why A is true? "The security market line (SML) states that the expected return on any security is the riskless rate of interest plus the market price of risk times the amount of risk in the security or portfolio" Looking at the SML formula, I can...
  7. superpocoyo

    Q&A Appendix

    Hi David, Do we need to go through Q&A Appendix (page 26 to 63) for P1.P1.T1? It is discontinued as of the 2013 FRM, not relevant to this year FRM level 1 exam? Thanks Melody
  8. superpocoyo

    Jorion's Definition of "Financial Risk"

    Hi David, Q&A P1.T1.1. What is Risk on page 27, "Note: an arguable weakness of Jorion's definition is that volatility includes upside movements. But risk is generally only concerned with "left-tail" losses; e.g. VAR is always one-tailed (VaR is always 1.645 normal deviates at 95% confidence and...
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