David Harper CFA FRM

hi david i have 3 urgent question for kind reply pls :-
1. Are formulas provided in the frm exam level 1 booklet?
2. If yes what are those formulas?
3. IN your answers to the question i notice that u use exp :- example $ 52 * exp (14%-0.5*36%). how do we find exp as in the financial calculater using the hp 10bll+ financial calculator?

Hi David
I want to know if the backtesting of the EWMA should be One or two tails test. In case it can be any of the two options, I would like two Know how to make a one tail test.

Hi David, i have a confusion regarding the interpretation of "credit risk" specifically in banking. it is defined as "when the customers unable to meet their obligations it is credit risk for the bank" then how can we measured with the proxy Debt to equity ratio?
is there any link b/w credit risk (customer default) and solvency risk ( banks default)?

Dear David,

Hope you are doing well. I have a question regarding BASEL-II capital charge working. How would we find Capital charge of DEFAULTED EXPOSURES under FIRB. Thank you.

Under what circumstances do you use the LN(S)+*u-.... formula? Is it for Stock Prices when the question specifies "continuous returns"??
Because sometimes you just use -Drift*T + (SD(sqrtT)*Z). Is that formula only used on VaR calculations for Returns?
There are so many different VaR formulae (for options, bonds, stocks etc), I think it would be great if you could list them all down in 1 page for us candidates.

Hi David,
I have a little bit of confusion with VaR calculations. There are so many variations to it. (FRM Part 1).
I see that sometimes you use the LN(S)+(u-SD^2/2)T to get the exponent with drift and then you do the regular VaR calculation on that (SDxZ). And then you find the Exponent of the answer to find stock price. You deduct that stock price from the initial stock price (+ drift) to get VaR.

Hi David
I am having serious issue my name on garp I'd is vinay k kukreja
Whereas my passport name is vinay Kishore kukreja...

The middle name's initial is used in my garp I'd..
Could you please help me what I should do..
I read that if the name isn't perfect . I won't be able to sit for the exam
So could you help me upon this?

Hi Dave

I just would like to thank you for helping me pass my FRM. Yea I mean I have passsed my Part II by luck. And I think I would never have a chance of the luck without your notes. My genuine thanks for your help.

David - I simply just wanted to say I think the You Tube videos are great. I've been studying and reading all of the material for Level 1 but, let's be honest, it can get DRY! The videos are a great way to learn different pieces of material in short intervals and you make it all pretty interesting (as interesting as some of this material can be! Ha)

Hi David,

Do the videos for the Part 2 Gregory readings reflect the 2014 curriculum? If not, are they close enough in content to be of help for Nov?

Btw, I had a great Part 1 showing in Nov 13. Quite a relief to be on question 65 with 2 full hrs on the clock. I found that the practice questions drilled me well on the concepts and fine-tunes to realize the trick questions. Keep up the good work!

Thanks,
Chris

Hi David,

I was hoping you may be able to provide the answers for the questions on this page; the links no longer work (I would have posted on the page but it said I have insufficient privileges).

https://www.bionicturtle.com/forum/threads/l1-t2-109-ewma-covariance.3959/#post-10401

Thanks,

Kyle

Hi David,
I am new to BT so I don't know how to post questions which I have doubts. If I click on the link given in the PDF , it says "You have insufficient privileges to reply here".
Can you please help me in this regard. Thanks

Hi David!
I have a question about how to observe the default point on the firm's balance sheet.
According to KMV, the DP is set as STD+0,5*LTD.

I use "current liabilities" as STD and "long term debt" as LTD. Is that right?
Can I use "current portion of LTD" as LTD or not?
(if can help, I use Datastream database to infer these values).

Many thanks in advance for your help

Agnese

3) Hull says a hedge portfolio is hedges against any movement of the underlying price. Doesn't matter how large are the changes in underlying price. I am asked in a question, what is the effect of +/_ 1% and +/-10% on the hedged portfolio. Given what Hull says, would you suggest me to comment on the gamma of the portfolio?

2) If yes, I believe the portfolio will not be hedged against down price movement of the underlying. Because the long call will be OTM while the future ITM. No payoff for option while the future is ITM and result in profit. Please correct me in i am wrong.

Hello dear David!
I am Ali.I am planning to take CFA 2. Now on hedging section, i got stuck!
Wandering if i can ask you a few questions on that.
1) Is it possible to have a delta neutral portfolio consisting of positions in long call option and future contracts?

Hi David,
I recently watched a video you uploaded to YouTube called "How to value an interest rate swap". My question about your explanation in the video is how to estimate the LIBOR Yield Curve that you use to get the discount factor for the different coupons maturities. As far as I know, the LIBOR maturities go from overnight to 12-month, so how can I estimate the LIBOR rate for a 18-month maturity, for instance?

Hello David,
I saw recently at GARP website that the name in the admit card should exactly match with the name in the passport. My name on the admit card is 'Ravi S Lal' whereas my name on the passport is 'Ravi Shankar Lal'.I am afraid as I don't know if I have sufficient time to get this resolved as the exam is on Nov 16th.

Would be great if you can help me with this.

Thanks,
Ravi.

Hi David,
could you please give me the link where I can find a summary of formulas for FRM Part 1...

Thanks,
Sven

Hi David,

Greetings from Trinidad & Tobago.

I am interested in purchasing your Level 1, Tier 1 FRM Preparation material. I requested a discount on the basis of having already purchased preparation material from a competitor. Can you provide some feedback as to when I might receive the code. I also attached a screenshot copy of the GARP invoice.

Regards,
Tyrone M Daniel