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Thank you for correcting my mistake in my spreadsheet. I'd like to extend my question now to see how the models might be able to handle a fixed income asset which has two variables that effects volatility which are price and L +spread. Is there a way to extend either RiskMetrics and/or...

Thank you for your insight...very heplful! You are right about the weight I changed the column to more decimal places and they do become very very small numbers. I'm sorry to keep bugging you about this example, but I just want to make sure I understand the in's & out's. I'm attaching a...

another question with regards to the spreadsheet example. I took what you did in the spreadsheet and tried to use a larger dataset (252 prices), but the weight using EWMA only gave a weight up to 118th price and the prices after that got no weight at all. I am using a 94% lambda. Does that sound...

My question has to do with lambda and the value you used within your spreadsheet and screencast. Listening to your screencast I hear the standard value of lambda is 94%. In your spreadsheet you use 90% and I know you put the comment (If lamdba is higher (lower), volatility update RESPONDS SLOWLY...

thank you for the response. I wasn't questioning why you were going through ANOVA I know it's because of the AIM's. I was just trying to understabd when/where it would be useful within a everyday risk management tool.

Can you explain to me the reasoning why you wouldn't just use the basic correlation coefficient (I see that you used the Correl function to backup your answer) way to come up with the answer instead of the ANOVA approach which comes up with the same result? I'm trying to understand where I...

Thank you for your response. I just wanted to take the example you gave in the spreadsheet and kind of put a different spin to it and see how it should be handled. I want to tell you your approach to helping people grasp the difficult concepts within the FRM exam utilizing the screencasts and...

I was walking through your correlationv1.xls spreadsheet and what came to me is how does excel's function "correl(array1,array2) handle data streams that don't match perfectly? With your example the equity hedge and high yield have matching number of values, but what if I wanted to see what the...

I bought the "Essentials of Econometrics" because I didn't want to wait for GARP, but I screwed up and bought the 2nd edition instead of the 3rd edition. Is there that many changes in the chapters we are responsible for where I have to still buy the 3rd edition? Thanks

Not to bud into your question arnemartin, but David if you could extend your answer to what would be the most optimal approach for studying for an exam like this also. I see three components included (Core reading, Screencasts, Study Notes) and how do they fit into the game plan (and also which...

Thank you for the info about what to start with and the update with the AIM's.

This has to do with #2 within your reply. I have to admit that the way GARP does it is somewhat confusing. They put out their core readings, but not their learning outcomes. So how do I know what to focus on within the core readings I bought from their library? Also only a portion of the...

My frustration with GARP is about it's inability to clarify their work requirements. For example I have worked for an asset management firm for the last eight years and I have designed, developed and came up with the requirements needed to build homegrown trading, portfolio management and...