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@David Harper CFA FRM Thank you! it is great. If B(p) is negative, then alpha should be negative right? to have treynor(p) >treynor(market).

Hi David and Nicole, May I ask why when Treynor measure of a portfolio is greater than Treynor measure of market, then it means there will be positive alpha? Thank you

@Nicole Seaman @David Harper CFA FRM Hi, one extra question, apart from the practice exam from GARP, which resources do you think have very similar questions types? Thank you!

Thank you so much! Noted! @Nicole Seaman @berrymucho

Hi @David Harper CFA FRM @Nicole Seaman , I am reading Hull- Chapter 19 Assigned Reading. May I ask why Forward delta is 1 but futures delta is not 1? Since from my understanding, both can be priced using F_0=S_0*e^rT, differentiating with respect to S_0 should get e^rT? Thank you!

@David Harper CFA FRM A side question, what are the formulas that will be provided during the exam? eg BSM formula is so complex, do we have to memorise? thx

@David Harper CFA FRM Thank you, you are great !

Hi, I would like to ask about GARP Assigned Reading- Hull, Chapter 15 When a stock pays a divided , D , at time n. At the last dividend date before expiration, t_n, the exercised value of the option is: S(t_n) - X If the call option is unexercised and the dividend is paid, its unexercised...

I found online, I think it is from Schweser. Erm, so this question is flawed? Thank you! @Nicole Seaman

Hi, Below is the question that I came across while reading Part 1 FRM Swap: Which of the following would properly transform a floating-rate liability to a fixed-rate liability? Enter into a pay: A. Foreign currency swap B. Fixed interest rate swap C. Domestic currency swap D. Floating...

Sorry, another clarification: Using FRA methodology for example 7.3: Is R_forward=R_2+(R_2-R_1)(T_1/(T_2-T_1)=5.7% annualized forward rate? Can I use this formula instead: [e^(0.056^0.75)]/[e^(0.054^0.25) ]-1= 2.84% to calculate forward rate and then multiplied with 1000000? The answer is...

Hi @David Harper CFA FRM , Thank you for the illustration. Now I understand about the floating rate note of the question. But another question that I have doubt is: For flxed leg of the swap, when we are using 5.4% , 5.6%and 5.8% to discount the fixed coupons, thus that means that: From t=0...

Hi, I have question for Hull, Chapter 7, Swaps. I am quite confused about calculating the value of the floating rate bond. Referring to this example: Consider a $1 million notional swap that pays a floating rate based on 6-month LIBOR and receives a 6% fixed rate semiannually. The swap has a...