Bionic Turtle’s Week in Risk (ending June 17th)

We have a great blog for you this week with our newest practice questions, YouTube videos and forum discussions! We’ve also launched our new Airtable, which highlights over 4,000 practice questions that we have available for the FRM exam!

Our new Airtable:

New practice questions

New YouTube videos

In the forum

  • [P1.T1] Is it true that efficient portfolios are well-diversified, but well-diversified portfolios may not be efficient?
  • [P1.T3] Overcoming the TI BA II+ calculator’s inability to accept non-integer periods in its time value of money (TVM) worksheet
  • [P1.T3] There is a pattern to solving a typical swap-gains-advantage question: 1. identify each company’s comparative advantage; this should be the external trade, 2. Use the share of net gain to determine each company’s net trade, 3. Size the swap accordingly


  • [P1.T3] Unless specified otherwise, assume interest rates are expressed in per annum terms. For example, “six-month LIBOR is 4.0%” refers to a six-month rate of 4.0% per annum
  • [P1.T3] In a vanilla swap, the floating rate is observed at the beginning of the (six-month, in this case) period, but paid at the end of the (six-month) period; aka, the cash settles in arrears
  • [P1.T4] A good and common question about Black-Scholes and dividends The dividend subtracts from the stock price in both the “outer” and inner N(d1) formulas. Further, dividend can be subtracted in either lumpy or continuous form, but don’t do both because that double-subtracts! And, an option on a foreign currency is just a special case where the asset is a currency such that its “dividend” is its own risk-free rate


Banking and geopolitics

consumer prices

  • Geopolitical Uncertainty Wanes, Pushing Mortgage Rates Back Up Geopolitical uncertainty spurs a flight to quality which puts downward pressure on longer-term U.S. Treasury rates such that “aspiring homebuyers in the U.S. are indirect beneficiaries of turbulent global politics.”
  • The Return of the Political-Risk Trade I didn’t realize there existed a “widely used Global Economic Policy Uncertainty Index” found at (methodology: “to measure policy-related economic uncertainty, we construct an index from three types of underlying components. One component quantifies newspaper coverage of policy-related economic uncertainty. A second component reflects the number of federal tax code provisions set to expire in future years. The third component uses disagreement among economic forecasters as a proxy for uncertainty.“)

Risk and risks


bank rankings


oil futures

Personal Finance

nerd's eye







  • Coastal High Tide Flooding Escalates, NOAA Reports “The projected increase in high tide flooding in 2018 may be as much as 60% higher across U.S. coastlines as compared to typical flooding about 20 years ago and 100% higher than 30 years ago. This is due to long-term sea level rise trends and, in part, by El Nino conditions that may develop later this year.


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