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hi, link for pdf is http://www.garp.org/media/1489123/frm_study_guide_changes_2015_-_final.pdf Its only the second edition so i dont think there would be major changes for the chapter 4 from 2013(its 2013 not 2003 i think). in my opinion you can go with it. thanks

hi, The options high implied volatility Vs real world (the high risk premium) is due to both the market liquidity risk and counter-party risk. Your friend does indeed confirm this because once market liquidity risk premium is almost null(highly efficient markets) then what remains is the...

hi, 6% is the ytm the yield which is used to discount future cash flow of the bond to get the price of the bond. So when yield get low pv of future cash flows increases(now discounting at lower yield say 3% instead of higher 6% yield)and thus increasing the price of the bond or CF from selling...

Hi, please visit following links to know more about prm and how it goes Vs Frm/cf a for that matter https://forum.bionicturtle.com/threads/frm-vs-prm.6620/ https://forum.bionicturtle.com/threads/frm-vs-prm.1834/#post-6370 https://forum.bionicturtle.com/threads/about-frm-prm.173/#post-671...

Jayanthi, I dont think u need to memorise sample skewness and coskewness. Please look at the Aims of frm carefully see if Aims specifically mention to calculate Skewness/co skewness then u need to memorise otherwise if aim is not to calculate hen get idea of concept. I think Frm emphasis on...

I also got confused by Brians second post above didnt read his first post though,Thomas is right yes procyclical effects seems to make worse even more worse while good even more good. Due to this effect during worse economics when potential loss Var is already high it gets even worse when...

Irina, I think David has not made the necessary changes in his study material as per the changes in the frm curricullum, thats why this anamoly that u pointed out its better to ask David harper regarding tbe same. Once he make changes that shud be reflectted in the notes. Thanks

Hi natalia, yes its not officially informed by Garp whether they do the verification process manually or do some random sampling or automatic random keyword checking its controversial on their side they should make it clear may be David @David Harper CFA FRM CIPM may elicit response from them on...

Hi, Claudia you can start from wherever you wish to like you can start from topics you are comfortable with, the order in the study planner is also which you can adhere to, i dont think BT recommends following the order of planner as you study, i dont know here Nicole Manley and David can help...

Yes Brian questions ssets should be supplemented with readings whenever one can. Readings+questions goes well hand in hand. Question sets doees clarify a lot of things and also give enough practice for the exam. When i do not understand somthing i do questions related to it. To understand it...

Hi, For part II, major references are: Jorion for mkt risk and ong for credit risk. You @NNath may also visit if u like: https://forum.bionicturtle.com/threads/books-helpful-for-frm.6101/ Thanks

Hi, Yes you can always come into risk management given your technical background.Statistics is a major area of frm or risk fir that matter. Economics is not that important for frm or risk mgmt. Not as important as its inin investments like cfa. Frm requeres good math skills just what u have...

Hi @ClaudiaM, I think BT material is more than sufficient. Also visit: https://forum.bionicturtle.com/threads/question-on-bt-bionicturtle-notes-and-garp-books.6106/#post-19165 Thanks

Jayanthi, Its m=3 not n=3 a typo i think k(m)=((m+n-1)!)/(m!(n-1)!)-n k(3)=((3+n-1)!)/(3!(n-1)!)-n k(3)=((n+2)!)/(6(n-1)!)-n k(3)=((n+2)(n+1)n(n-1)!)/(6(n-1)!)-n [(n+2)! Can be write as (n+2)(n+1)n(n-1)!] k(3)=((n+2)(n+1)n/6)-n Yhanks

Hi, This sounds confusing to me i have never encounter such thing before really,As far as i can get the reference currency in case of geometric is the asset price itself so that if geometric returns are independent of the asset price(we cannot infer negative prices as in case of AR) this implies...

Hi, Both geometric(GR) and Arithmetic return(AR) are dependent on bith the asset and currency returns,i mean there is no role of units of currency just the currency return. If a% is asset return and c is currency return then, AR=a+c (simply add currency and asset return for AR)while...

Jayanthi May i give a twist ti soln proposed by brian, PD iis bernaulli variable assuming two values 1(default) or 0(no default) with resp. Probabilities p and 1-p. E(PD)=p.1+(1-p).0=p=meanPD Var(PD)=p.(1-meanPD)^2+(1-p).(0-meanPD)^2=p.(1-p)^2+(1-p).p^2=p(1-p)(1-p+p)=p(1-p). Thanks

Jayanthi, I think its because sample cov takes n-1 as denoninator while expected values of x,y and xy takes n as denominator. So difference in denominator shall be responsible for this anamoly. Thanks You can see this from my derivation of the formula above, Cov(X,Y)=E((X-Xavg)(Y-Yavg)) u can...

Hi Please try these links : http://www.unicomlearning.com/learningsolutions/course/165/ http://www.energyinstitution.org/education/online_list.php?garp-erp Please also search for viverarisk on google. Thanks

Jayanthi, Yes Bayes does not require independence P(A&B)=P(A)*P(B) to hold.Bayes holds both for independent and dependent events A and B. Independence rule is a special case of Bayes. P(A&B)=P(A|B)*P(B) is what Bayes says, now if A and B are independent then P(A|B)=P(A) as David cited above put...