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1. ### Significant Level

OMG, I missed that. I was looking for the number of days but didn't see it, so I was assuming it was 100. Thanks
2. ### Significant Level

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? I know...
3. ### Black-Scholes N(-d1) & N(-d2)

David,, you are awesome. You provide me with the answer I was looking for. I understand now. I was doing 1 - 0.09 = 0.93 so I was obviously wrong. Thanks again
4. ### Black-Scholes N(-d1) & N(-d2)

So the explanation of the exercise and the result is wrong? That's what I thought N(-d1)=1-N(d1) and how I always calculated but the answer of the exercise confused me. Thanks
5. ### Confused in the GARP response to this question

Thank you so much
6. ### Black-Scholes N(-d1) & N(-d2)

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. Thanks...
7. ### Hypothesis Testing

Sorry, one question read which one is correct and the other which one is incorrect. I see it now. C is correct and D is incorrect. THANKS
8. ### Hypothesis Testing

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...
9. ### Confused in the GARP response to this question

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 ? a) -12500, b) -12290, C) 12500 d) 12290 In...
10. ### Critical Value Chi-Square

Question: 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? Thanks Using a sample size of 61 observations, an analyst determines that thestandard deviation of the returns from a stock...

12. ### Greek Letters

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. Thanks Which of the following statements is correct? I. The Rho of a call option changes with the passage of time and tends...
13. ### P1.T4.26. Unexpected loss (UL), Ong

Thank you so much. I don't know what I did but I didn't come up with the number. I see it now
14. ### P1.T4.26. Unexpected loss (UL), Ong

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 Thanks
15. ### Chi-Squared

How it comes to the conclusion that the critical value of chi-squared will be 79.08 in the problem below? Where is that number coming from?
16. ### Question 9, Exam 2013 from GARP

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? Then, Why...
17. ### sample question from GARP

David, Thank you so much for your reply. This is a great help for me.
18. ### sample question from GARP

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...
19. ### FAQ Exam Which calculator do you recommend?

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...
20. ### Probability

All right, now it make sense. I was wondering how to get the values for the exam and it was driving me crazy. Thank you so much for all your help