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Hi @chivinny Thank for the suggestion, but the forum board called Today's Daily Questions already represent the "incomplete" question sets. On Monday, I publish a new P1 and Wednesday a new P2, such that it can be easily inferred that currently (3/30/19): With Monday's...

Hi @Branislav Super glad you found some inspiration in the videos: that's what we are here for :) In regard to your summary: yes, rIght!! All of that looks solid to me, very well done. I agree with virtually all of your statements and I definitely agree with the substantial point that, to...

@JamesVU2000 R(1) and R(2) are returns, ERP = equity risk premium. Please see https://forum.bionicturtle.com/threads/using-capm-to-calculate-expected-return.10193/post-48122 i.e.,

Hi @Branislav Yes, thank you. Indeed, that is my typo. Yes, actually, we always do appreciate error/typo notifications, no matter how small: the study of risk includes, by definition, an attention to detail. (cc @Nicole Seaman where should this be located?) Thanks!

Hi @kkapoor Terminal distribution refers to the distribution at the end of a selected, longer time horizon. For example, say an asset's daily returns are normally distributed with (return) volatility of 1.0%; this is a given assumption about the distribution over one day. We might then ask...

Hi @Tejas I don't understand what you are asking exactly, sorry. In the above, I was explaining how the compound frequency informs the exact rate. In the above, I translate discrete (quarterly compounding) to continuous compounding. Here is a recent video of mine specifically on the topic of...

Hi @ericbmoreira Thank you, that's nice to hear! As I looked subsequently at more of the EOC questions n RM&FI, I have realized there is a qualitative difference between the question's in Hull's RM&FI and his OF&OD. Perhaps it is because "The level of mathematical sophistication and the way...

Hi @ericbmoreira Thank you for searching, this question has not yet been posted. As you know, it's a Hull EOC question; we did not write it. I say that because ... unlike most of Hull's questions, this is not good, for the reason you cite. We haven't "vetted" the RM&FI (like we have the primary...

Hi @Serdar7891 I just completed a playlist on youtube that includes a sequence on the greeks. (I'm honestly really proud of it). It's here, it's twenty videos, from FRM T4-1 to FRM T4-20 but the greeks start at Option Delta (FRM T4-13) https://trtl.bz/2Jo4oZy

@Nicole Seaman can you run interference on these if there is going to be machine-gun questions, I've been working all weekend. We need to ask if @eldakrory is searching first, or find the tags, I just don't have any more energy tonight ... can we at least group them together, please? @eldakrory...

Hi @eldakrory I just listened to it, I don't think i was emphasizing the CI. It's just in there to show the generic (2-sided) CI approach, in comparison to the significance approach. We could show a 1-sided CI, it's just unusual in my experience. The video means to focus on the 1-sided...

Hi @Jaskarn I trust you are aware we are talking about Malz Chapter 11.1 and that you are asking me about Malz statements that are repeated in our notes? We can jointly be referring to the assigned Malz. The reason I say that is that this paragraph by Malz is written in an extremely confusing...

Hi @abhinavkhanna Yes, exactly, and well put! The underlying (the fundamental) position in the Metallgesellschaft case was the short position in long-term forward oil contracts. They had a forward contract to sell oil at a fixed price in the distant future, say, $30.00, so that if the spot...

Hi @Jaskarn Yes, a thematic idea is that return correlations increase (e.g, spike toward 1.0) during stress. Basically, during stress this implies that positions (or components) are experiencing (strongly) negative returns simultaneously The case study in Malz Chapter 11 (11.1.4 Case Study...

Hi @Gerard Chan These aren't my questions, so i will be super-brief. Q1 is correct because the given probabilities (i.e., 2% and 3%) are conditional probabilities. Q2 I don't want to comment on: "incremental default probability" is not in the FRM syllabus, I can speculate on the reasoning, but I...

Hi @Jaskarn Thank you, I'm doing okay .. ready for a couple days off, truth be told (which will have to wait until next weekend!). Yes, I believe you are correct, that the raw bid-ask spread (in your example $10.00) is the total cost of a purchase-then-sale which is two transactions. But...

Hi @Branislav Hopefully you can see that the legend (ie., the right panel above that is labelled "This is the legend ...") is meant to identify the values in the left panel. For example, the first row of values (on the right) includes: (0.650), (1.101), 686.032. Their corresponding lables (on...

Hi @Jaskarn it would be helpful if you can reference the reading because it took me time just to find the reference. Okay so this refers to the accounting versus economic (value) trade off that is generally introduced in Crouhy and which is discussed at length here...

Hi @Gerard Chan I can tell it's not ours because the question is not well phrased, sorry to say. Compare these two (eg) questions which appear to be similar ... What is the probability that a firm rated A will default in 3 year? What is the probability that a firm rated A will default on the...