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Yes its possible if you can cover each of the aims line by line. But do cover all the topics and make sure that you did not left behind any of the recommended aims. thanks

hi, http://forum.bionicturtle.com/threads/frm-part-2-vs-part-1.6690/ You cant compare the difficulty level. They are of same difficulty except that they have different topics to be covered. part1 has some difficult topic while some easy ones wherera part 2 also has some difficult topics also...

pls see the following links: http://forum.bionicturtle.com/threads/cfa-vs-frm.6495/ http://forum.bionicturtle.com/threads/frm-vs-cfa.6613/ http://forum.bionicturtle.com/threads/frm-or-cfa.5675/#post-16214...

Hi, please visit the following link: http://forum.bionicturtle.com/threads/frm-fun-11-do-we-really-need-all-three-durations-lets-settle-this-now.6012/#post-18668 thanks

Square root of n. The returns are independently and identically distributed that mean the returns of portfolio in consecutive periods are independent and have no correlation with each other(which is not a real world picture but only a theoretical assumption). So if we assume variance of returns...

Hi, the values in Var-Covar matrix are covariance between Cad and Eur which is correlation*stdDev(x)*stdDev(y) =correlation*.05*.12=correlation*.006 when correlation =.2 value=.2*.0006=.0012. thanks

Let x be the libor rate between the 3 months and 6 months [e^x*.25-(e)^.25*.06]*3000000=2550 [e^x*.25-(e)^.25*.06]=[2550/3000000]=.00085 (e)^x*.25=1.015113 (e)^x*.25=1.01596 .25x=.015836 x=6.334% 3 month libor as of today=(e)^.5*.058/(e)^.25*.06334=1.0294246/1.015963=1.01325=(e^3 month...

hi, your R^2 interpretation is correct to an extent. F-statistic the higher the value the higher the chances that the given regression is significant or the the independent variables (here 4 equity returs) are sufficient to explain the returns of the index which is the dependent variable. You...

You are here regressing the returns of the 13 so funds against the index returns. Table ` has value of R^2 of 0.997938905 which tells that the following 13 funds explains 99.79% of returns of the equity index. SO that regression explains 99.79% of the index returns with the help of these equity...

C16. For a equally weighted portfolio with n assets with equal weights of 1/n each with variance of sigma^2 and average covariance of Cov with each other and avg correlation of Corr we have, stdDev(p)^2=...

Yes Dividends represents a net outflow from the stock price so just replace S0 with So-PVD or S0 e^-qT where q is the continuous dividend yield. we assume continous dividend yield since bsm itself is based on continous returns. In case continous yoield is not given convert the yiled to continous...

C14. Rc be the continously compounded return an R is the annual return suppose we invest $1 today at continously compounded return Rc and also invest $1 today at annual return R Now This two positions should yield the same amount after time T, Amount at continously compounded return Rc=Amount at...

C13. Delta of call= first derivative of call price w.r.t the underlying asset S from BSM: c=SN(d1)-X*e^-RfTN(d2) partially differentiating above bsn equation w.r.t the S the underlying asset price, dc/dS=d/dS[SN(d1)-X*e^-RfTN(d2)] dc/dS=d/dS[SN(d1)]-d/dS[X*e^-RfTN(d2)]...

i would interpret the situation as: OTM put implies high volatility which means probability of going either way of the current stock price is higher. But ITM put has a lower bound so that the volatility is lower because there is only high probability of going up but not so much probability of...

C10. Monthly mortgage payments= MP, MB0= original Mortgage Outstanding, T is maturity of mortgage and rm is monthly mortgage rate MB0=PV of all future Monthly payments MB0= MP/(1+rm)^1+MP/(1+rm)^2+MP/(1+rm)^3+................+MP/(1+rm)^T MB0= Geometric series with first term a=MP/(1+rm)^1 and...

C9. Duration= %change in Bond Price/ % change in yield Duration= Average %change in Bond Price/ Average % change in yield Duration= [(BV- - BV0)/BV0+(BV0-BV+)/BV0]*.5/.5(chg in y+ chg in y) Duration= [(BV- - BV0)+(BV0-BV+)]*.5/.5*BV0(chg in y+ chg in y) Duration= [(BV- -...

C6. Bayes Theorem P(AB)= P(A/B)*P(B) P(BA)= P(B/A)*P(A) P(AB)=P(BA) => P(A/B)*P(B)=P(B/A)*P(A) => P(A)= P(A/B)*P(B)/P(B/A) similarly P(B)= P(B/A)*P(A)/P(A/B) Suppose only two events occurs in the experiment, probability that both A and B occurs is, P(AB)= P(A/B)*P(B) now probability that A...

C3. standard deviation of portfolio of a risky asset R and a risk free asset F stdDev(p)= wR*stdDev(R) stdDev(p)^2=wR^2*stdDev(R)^2+wF^2*stdDev(F)^2+2*wR*stdDev(R)*wF*stdDev(F)*Corr(R,F) now for risk free asset there is no volatility or risk stdDev(F)=0 and there is no correlation b/w risk free...

Hi starting a new thread for discussing various important concepts related to the exam, C1. Betai= Cov(Ri,Rm)/stdDev(m)^2= correlation*stdDev(i)*stdDev(m)/stdDev(m)^2 =correlation*stdDev(i)/stdDev(m)...

The red zone is the zone where the model gets rejected. If the no of exceptions are >=8 than the LR ration goes>3.84 which led us to conclude that the model is not significant and thus reject it at the given said level of confidence. So we are x% confident that the model does not does well in...