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Hi Yes you have to pay equal attention to all the readings. There is no favorite topics for Frm exam that shall carry extra weights. In quant analysis i think all the readings are important,in foundations too, in fin mkts and products everything u need to study i mean u should know every...

Yes Malz is talking physical settlement,in case no other deliverable bonds are their, and no option of mark to market settlement your scenario seems sensible but such contract seems illogical because if there are no bonds for physical settlement how can one specify it in the contract ,if bonds...

Hi brian I think there might not be physical settlement of bond but only the difference b/w mkt value and face value shall be delivered. Thanks

Brian you can get how sign really changes by visiting: https://forum.bionicturtle.com/threads/merton-model-a-summary-of-the-issues.5646/ Or watch video: Thanks

Please visit and read down the page case is discussed: http://www.simplilearn.com/resources/finance-management-videos/financial-disasters-rrt3co39vd200 Thanks

Yes you can print it even if there are some changes you might need to reprint some 10-15 pages which are manageable. My advise is to print it. Its better if you can just jot down the important formulae only of these 150 odd pages on a drawing sheet and paste it in wall of your living room so...

Hi For calculating variance of portfolio with several securities and correlation b/w them the weights are squared,but when Expected value of variance is calculated we take probability weights which are not squared but taken as it is , the exp Var=summation(wi*(x-mean)^2) where wi are probability...

Please visit, https://forum.bionicturtle.com/threads/reading-plan-for-p1-by-garp-and-bt-contents.6025/ https://forum.bionicturtle.com/threads/some-frm-part-2-study-strategies-that-helped-me.8190/#post-32972 Thanks

Yes a negative IR does imply poor information on managers part,having information means having high quality and accurate information the better the information the well informed the mangerand a positive IR and a negative IR means less worthy /accurate information implying less informed manager...

Hi Information is used to denote information quotient of manager,a higher information indicates more reason for manager to deviate from the benchmark and earn returns which is nothing but returnd relative to the benchmark. In a sense information ratio implies how much better the manger is...

Hi The p value above we calculated is for two tail i think. You calculate two tail test static above look for the corresponding los under 2 tail heading in the table which is nothing but pvalue . You calculate p value for both sides of the tail for a two tailed test whereas for one side of the...

Yes Jayanthi We can test the significance of the hypothesis test using p value criterea also besides the normal procedure of comparing tstat with the tcric at a certain CL. Here p value=.035<.05 so we reject null at 5% significance level or at 95% CL whereas at 1% significance .035>.01 therefore...

Yes thats very careless in the author' side i had taken the base as e only. And in these merton and bsm we usually use e as bade for log terms. Thanks

Yeah sigma should be .096 instead of .0196, now check Brian 2.8 shall come,i have checked it. Vt is denoting A0 only Brian. Thanks

Yrs Brian the answer do come to 2.8, In merton model replace everything of equity in Bsm with asset, plug in the values and calculate[ log(12.511/10)+(.05-(.0196^2*.5))]/.0196*1 Vt is the current value of firm's assets=12.511b,X is debt of firm current=10b,mu=expected return of firm=.0,sigma(v)...

Yes Brian in your first post d1 is not explicity mention in merton version of the BSM. I think the author took d2 as k and mentioned d1 as k+sigma*sqrt(T-t) as relation d1-d2=sigma*sqrt(T-t) holds. Its a silly mistake in terms of using wrong notation. Thanks

Yes it assumes a parallel shift of spot price curve to form futures price curve and get Var of futures in similar way as we get Var os SP. In the end Var of SP gets multiplied by delta to get Var of futures. Contango and backwardation interchange is possible. Thanks

Pv of coupon is the Pv of coupon on next settlement date (t=270-148=122)i.e. Coupon paying date , if p1 is the dirty price today at t=0 then at t =270 pv of remainin future cash flows is (p1-pv of coupon)*exp(yield*270/365) which is nothing but dirty price by definition, now we have AI since...

Change corresponding futures price by delta times a%. Thanks

Please refer to the Aims and read them carefully,look for the keywords like define/describe/calculate etc thede keywords definitions are given in the frm study guide only, you can infer from these keywords as what is to be actually desired by the Aim. Thanks