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Thanks for the prompt response. I agree this question has areas of improvement, and based on the thread you have linked it seems as though GARP is struggling with landing on a sound question. Glad my logic is not faulty. Cheers!

Hi David, I am having a hard time why is C correct for this question. The answer says 95% VaR is more "reliable" than 99% VaR. Does that mean its statistical power is higher (1 - probability of Type II Error)? If the answer is referring to power, then if we assume the true model is 93% and...

Hi, I would appreciate some assistance with disentangling the formula for basis spread from the reading - Covered Interest Rate Parity Lost: Understanding Cross-Currency Basis. EQN 1: F/S = (1 + r + b) / (1 + r*) --> This is CIP with the inclusion of the basis spread (b) The reading shows...