If I have a significant level of 2% and a list of historical return: 0.012, 0.024, 0.033, 0.045, 0.057 and 0.071 why do I need to take the 5th lowest return? How do I come up with the 5th lowest return from the 2% significant level? and how the logic works for other significant levels?
ok, I always seen in all the exercises that when calculation the price of a Put to convert the d1 into -d1 you need to do --> -d1 = 1 - d1
However, I don't know in the following exercise solution, where the -d1 & -d2 figures are coming from.
Any help would be highly appreciated.
I have seen this question from different sources. GARP Exams (2007 & 2009) and have 2 different answers for it: C & D
Which is one correct? I would say C, but would like to have confirmation. Thanks
Which of the following statements regarding hypothesis testing is incorrect?
A. Type II error...
Consider the following 6-9 FRA. Assume the buyer of the FRA agrees to a contract rate of 6.35% on a notional amount of $10 million USD. Calculate the settlement amount of the seller if the settlement rate is 6.85%. Assume a 30/360 day count basis ?
My questions is: How do I come up with: value of chi-square will be 79.08 (using df=60 and p=0.05)? Should GARP provide a table for me to look at those values?
Using a sample size of 61 observations, an analyst determines that thestandard deviation of the returns from a stock...
I've seen the following question in different books and they provide with different answer so now I'm confused.
One said B is correct, the other said that D is correct.
Which of the following statements is correct?
I. The Rho of a call option changes with the passage of time and tends...
Can I see how to calculate the Unexpected loss% for question 26.2?
I have UL = SQRT [EDF X variance (LGD) + LGD^2 X variance (EDF)] = SQRT [4% X 25% + 50% X 4%]
However, that formula does not come up with 11% which is the answer I had in the book
Could anyone help me to understand the answer to the question below?
How do I know that F-Statistic is significant at the 95% confident with the information provided in the problem? It just just a limit where we define that F-Statistic is significant at a determinate % of confident?
How do I know that I need to apply Chi-Square in the question below? I see in the explanation: "Since you are trying to test population variance" How do I know that I'm trying to test population variance from the question? Which are the clues in the questions that lead me to determinate that I...
I've seen that there is a specific type of financial calculators allow for the exam. I recently bought one of them, Texas Instruments BA II Plus , and don't know how to use it yet.
As you all know, there are many, many formulas for the FRM exam. So I was wondering how can I know which of those...