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Hi, Efficient frontier is basically the same as CML. Except that the CML line beyond the market portfolio(which is the tang-ency point of CML with the mean variance curve) represents this efficient frontier . Earlier through mean variance optimization we obtain the efficient frontier as the...

please try again to register if the problem persists then try to contact garp admin.. thanks

Hi, cant comment whether the exams provided by them are difficult than garp. But certainly both would provide you with enough practice. thanks

I think both schweser and BT would suffice. If you want better understanding of covered concepts and want to learn more then you can go for other literature like ong, jorion and hull. Its better that you have already read these books and i would recommend to read more if you like otherwise. It...

Yes once you register for the exam they will send you a email with the entry ID/pass etc and all other exam related information. The address of the exam center will be printed on the admission ticket sent by them to you. thanks

hi refer to the lnks: http://www.understandingcalculus.com/chapters/04/4-1.php http://ocw.mit.edu/resources/res-18-001-calculus-online-textbook-spring-2005/textbook/ thanks

hi there, paper will be provided by garp people only that is to say the Question booklet itself has rough papers for doing rough work for calculations etc. Regarding second Q, Garp Qs do represent the real exam Qs but its possible that they vary in terms of difficulty and details otherwise the...

regarding your last two Qs, Yes you can do both according to my experience after asking permission from the proctor if they allow you then you can do either of them and after all it depends on the exam site rules and regulations. thanks

The order is sequential so that we need to consider every event when A can win out of a set of possible events where any of A,b,c can win. We just need to consider those events where A wins so we figure out the possible events as(we are given that orders of throw is sequential) P(A) or...

Lognormal price-based DD = [V(t) - Default]/[sigma*V(t)] =[$1,200- $805]/ 20%=395/20%*1200=1.645 PD = N(-DD)=N(-1.645)=5% please to understand more go to the link: http://forum.bionicturtle.com/threads/merton-model-a-summary-of-the-issues.5646/ thanks

Dear emmyemmy, please go through the link: http://forum.bionicturtle.com/threads/please-review-my-study-plan-for-nov-2012.6089/#post-19100 http://forum.bionicturtle.com/threads/how-did-you-study-frm-and-passed.6655/...

Risk management takes into account the various risks that the firm can face in the future. If out of blue some rare event occurs then all the plans of saving the firm from this rare event can go to jeopardy. Managers are not able to anticipate these risks , had they anticipated the risk in...

GP: a=1/6 and r=5^3/6^3=125/216 P(A wins) = a/1-r =(1/6 )/(1-(125/216) )=(1/6 )/((216-125)/216)=(1/6 )/((91)/216)=216/6*91=36/91 thanks

P(A wins)=P(A) or P(A'&B'&C'&A)+P(A'&B'&C'&A'&B'&C'&A)+...... assuming they continue sequentially until one wins in the order A,B,C till indefinitely until one emerges out as the winner P(A)=P(B)=P(C)=1/6,P(A')=1-1/6=5/6=P(B')=P(C') P(A wins)=P(A) or P(A')*P(B')*P(C')*P(A) or...

Hi, Basically we need to find the maximum loss that can occur for a portfolio or any position. VaR is defined as the maximum level of loss that a portfolio can suffer over a period at a given confidence level. As its a parametric approach we assume a normal distribution. We are interested in...

It seems a little more on calculation side can you please explain the Q more. otherwise its very calculative. thanks

Yes CVAs are for OTC credit risk measurement while IRC is for capital charge calculation(revised Var Basel II). thanks

The capital requirement for IRC is calculated from the impact of credit events (defaults or migrations) that may occur during the capital horizon; the standard usage is a one year horizon and a 99.9% confidence level. The capital charge is incremental because VaR does not take these events into...

Hello there, The 2.33 is the z value its a standardized value for a normal distribution with mean 0 and standard deviation 1 which signifies that the value at 99% confidence level is 2.33 times standard deviations from the mean value 0. Higher the CL the higher the z value which means the value...

Hi mastvikas, Yeah its nice to hear that you understood the problem. Yes Baye's theroem is an important concept that has made its comeback in frm as david said. And its not at all a surprise that this problem are there in the garp's sample paper because i think garp wants to cover the bayes...