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Thank you so much David! In that case, I think, which method to use depends on the question.

Hello, In the BT notes (document name: R1.P1. Risk Taking), Page 9 says we take risk free rate + Risk Premium as Risk adjusted discounted rate when valuing the asset, while page 24 says we WACC as Risk adjusted discounted rate. Can someone please tell me when it is appropriate to use risk...

This question is from the GARP sample exam. I checked T3.Hull Interest rates. I believe I can use the one I mentioned (for continuously compounded) as that was widely used throughout Hull. I saw the other method mentioned too. Thank you so much for your response!

Hello, This might be a silly question, but I am really confused with forward Swap rates. Can someone please help by providing the steps in calculating the answer for the question below: Question: Given below is the term structure. maturity in years swap rate 1...

Thank you so much David! I was wondering whether the values 0.0228 and 0.0668 came from. I am clear on this now. Thanks again!

Thanks David! I posted it before you replied. Thanks again!

Hi David, Could you please help in solving the below question from GARP. Assume that a random variable follows a normal distribution with mean of 80 and standard deviation of 24. What percentage of this distribution is not between 32 and 116 ? Ans: 8.96% Thanks in advance!

This helps a lot! Thank you so much David!

Hi, I am having difficulty in solving the following type of questions and cannot understand the solution posted. Could you please explain the solution for the following questions? 400.2. Peter the Analyst has generated 800 independent scenarios of future single-period portfolio values. He...

Hi, for 400.2., could you please explain the solution posted?