I failed level 1 exam:( my passing score was 3323, this is my first time I took the exam and I was shocked didn't mange my time properly.
I'm very disappointed, I need your honest advise if it worth giving it one more chance based on your experience
I would appreciate if you can explain this issue:
If the company has positive net exposure, (assets higher than liabilities) - depreciation of the foreign currency will be against the bank and increase the exposure.
If the company has negative net exposure (assets less than...
Can you please clarify the topic of carry roll down:
Here we examine 3 possible assumptions made by investors?
1. If forward rates are realized it means that investing in long term bond equal rolling over shot term bonds and the investors are indifferent between the two options? is...
Here is the question:
Philippe Noiroj, the manager of a $150 million distressed bond portfolio, conducts stress tests on the portfolio. The portfolio’s annualized return is 12%, with a return volatility of 25%. In the past two years, the portfolio encountered several days when the...
Can you please clarify a point regarding the calculation of Var:
Var is calculated as: Volatility*Deviate*Value
Where the deviate (sigma) is calculated as the distance from the mean.
but when calculating Var we ignore the mean(expected return) and we use the value of the portfolio...
In the following practice question from 20112, the average loss which is 0.5*0+ 0.5*(0.2*10+0.5*18+0.3*25)=9.25M is not divided by the tail, can you please explain why?
30.4. Over the next year, a operational process model predicts an 95% probability of no loss occurrence and a 5%...
Thanks a lot David and Shakti.
One more question David regarding the calculation of the ES - I have noticed in some questions that sometimes you divide the average loss by alpha and sometimes you dont, can you please clarify.
I would appreciate if you can clarify 2 points in respect to the coherent risk measure:
1. Can you please explain the Monotonocity and translation invariance?
2. ES is sub additive because the expected return will be higher in 3 bonds portfolio than in 2? Based on the example on the...
Thank you, David,I'm referring to my initial question:
the only thing I can't figure out is why you multiply $1 by 0.83 which is basically the ratio of the existing s/h out of the total equity ( s/h + warrants)
Maybe I'm putting too much time and energy to understand it..
Thank you David and Shakti for your comprehensive explanation.
David I read the related link you referred me to,thanks you very much it helped me understand it from the point of you I'm familiar with - finance
1. The calculation of the dilution when the option is ITM - is understood.
2. Can you...
I really need your help is understanding,I was trying to figure out by myself but with no success unfortunately:
when a company issues warrants to employees, it gives the employee the right to purchase shares @ a specific strike price.
When the employee exercised, basically the company...
I know you are working hard:( anyway I can start with the chapters that haven't been changed from 2012 exam.
I hope you would have time to publish new practice question, as this is best indicator for understanding the material.