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Thanks and glad to see that we can discuss all general risk topics irrespective of FRM Exam. Here is goes first question regarding CVA CS01 . -- The CVA charges equation is easy to interpret when full re pricing is used CVA Charges = EAD * LGD * PD = LGD * ∑ exp...

Dear all, I find Bionic turtle discussions mostly focused on the FRM exam .Can any one suggest few other good online discussion forums in the Market/Credit Risk BA space Thanks in Advance

So happy to say passed Part-1 -- 3 1 3 1 .Thanks to Bionic Turtle for the guidance. All credit goes to almighty God who helped me to pass the despite the poor performance in the exam. This was my second attempt. I would have tried again if I lost. So for those didn't make it ..don't get...

Hi , Wanted to confirm one point related to Interest Rate Parity. Quote : USDBRL . I assume same as USD/BRL If the spot rate for USDBRL=3.5 and US Interest Rate=1% BRL Interest Rate=9% In the IR Parity equation .I am having a confusion which should be foreign currency and which is the local...

Hi All, Noticed that FRM exam is no more allowing to bring pencils & erasers. Hope there are no policy changes to calculators allowed? How do we correct the wrongly marked answers?By putting cross sign on the wrong ones and answering correct ones? Apologies for silly questions, but thought...

HI All , Can you please help in answering the below Suppose the spot rate is 0.7102 USD/CHF and Swiss interest Rate = 7.6% US interest Rate = 5.2% If the 1 Year forward rate is 0.72 USD/CHF What's the arbitrage opportunity here ? -- My Understanding : As per the Interst Rate parity eqn the...

Hi , Anyone has the links to FRM Part-1 -2015 Aim statements ?If so please share. Wasn't able to locate the same in GARP site Thanks

Thanks for the comments

Hi All, Got a question on the below Variance properties 1)Var (x+y)=Var x +Var y 2)Var xy=Var x+ Var y + 2 covar(xy) corr(xy) --How do you explain the difference of these two properties 1) If you have a portfolio 10% variance and other with 20 % variance combined variance =30% ? 2)How do you...

Got a basic question on the sample question Provided in Miler Chapter-3 Sample Question: X is a random variable. X has an equal probability of being −1, 0, or +1. What is the correlation between X and Y if Y = X2? The above is solved using the Expected values . My question : Why this is not...

Thanks .will wait for further comments too. I was trying to understand why Kurtosis is constant (=3) fro normal distribution. With varying 10%,20%,30% standard deviations the shape of the normal curve (though symmetrical ) in terms of flattening/peak will vary , hence Kurtosis will vary ?

Hi All, Quick question : Is there a relation between Kurtosis and Standard deviation for normally distributed curves. For example there can be normally distributed curves with 10%,20%,30% standard deviations for which Kurtosis will be varying for each .Can somebody explain further . Thanks in...

Thanks a lot for the clarification

Hi All, Preparing for the Part-1 2015 Nov. Got a question on distributions from the below two questions given in the Miller's question at the end of Distributions (page 89, Q1 & Q2) My Confusion: This is solved by Bernoullis distribution. Why can't we use poisons distribution to solve these...

Hello Team, I gave the FRM Part-1 for Dec .Unfortunately couldn't make it through .Thought of giving again and was reviewing the Part-1 changes from Dec-14 To May-15.Keeping aside Additions and Deletions, on the updates part can we more or less assume there is not much change on these topics...

Hi Everyone, I took the FRM Part-1 yesterday. Found the questions more of conceptual and than of numeric. I am a bit worried as I couldn't finish time .Any guess of passing the exam getting around 55%?Also does GARP announce quartiles for the failed candidates also ?