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@lRRAngle Yes, the implicit one-sided null here is H(0): µ ≤ 0 such that H(A): µ > 0. But this ("If we fail to reject, then we can assume that the mean return is in fact greater than Zero, and the answer is yes") is not quite correct; if we fail to reject, then we accept the null, which means...

@lRRAngle it's often forgotten that these values are standard deviations (the critical value of 1.65 is just the special case of the standard deviation for the "standard" unit variance distribution, is why I actually call them "standard standard deviations"). So when we observe a test statistic...

@Sumeet. Mehta ohhh, I didn't realize the deadline was today. I'm sorry but we won't be able to reach anybody at GARP until tomorrow (their staff doesn't work weekends to my knowledge) at the earliest. We will try and we will link to this page: I am hopeful that if we cite the website problems...

Hi @lRRAngle There are actually over a dozen forum posts about this (you can search "beta correlation" per your title); e g., https://forum.bionicturtle.com/threads/frm-exam-2007—q-28-expected-annual-return.3983 I just commented over here at...

Hi @Sumeet. Mehta I am copying @Nicole Seaman in case you need our this week helping running interference (getting their attention) with GARP on this. Thanks, David

Thank you @emilioalzamora1 for the offer to help! @FRM candidate please see above, including link to XLS sheet if necessary (https://www.dropbox.com/s/i18bwa7nics5614/0312-hull-rmfi-eoc-3-16.xlsx?dl=0) The tag used for Hull's EOC questions in RM&FI, in this case, = "hull-rmfi-03-16"

Hi @ziminli1228 I moved your question to this thread, please see above :) Let me know if you want further help!

Hi @Bernardo Yes, absolutely. You are correct, it is our mistake. :( Apologies. It should read exactly as you show, we will get this fixed. Thank you! (cc @Nicole Seaman )

Hi @elbest1542 Crouhy doesn't provide a numerical assumption but here is my interpretation. I have copied the relevant section below (emphasis mine): ... If the company buys a futures contract on the pound, it hedges the accounting risk because (eg) depreciation in the dollar which produces...

i always could be missing something since i only spent 20 seconds reading the question, but it looks like a lame question: the answer suggests that put's value = its intrinsic value of $5 = 60 - 5, so has no time value. But the call has $5 of time value, so maturities don't match and put-call...

@Karim_B Yes, re the EVT, it's my mistake (the GEV should not refer to any threshold as it does not have a threshold.) Again, thank you for your attention to detail!

@Nicole Seaman Agreed, I just checked R19 Hull Study Note to see if we used PQ T3.715.2 in the Notes, but we didn't so neither do I understand the reference to the notes. Thanks,

@Jaskarn Over the years, one of our key feedback issues to GARP has been around the "action verbs" in the Learning Objectives. Many formerly quantitative verbs (e.g., calculate) have been softened to qualitative verbs (e.g., Describe). Hull's Chapter on Exotic Options is well seasoned. Below I...

Hi @QuantFFM dw is how Tuckman specifies the models; he scales the random standard normal rather than scaling the annual basis point volatility input (which would be more intuitive to me, too!). But I'm not sure it matters because the essential random shock is the product of three variables...

Hi @andred0250_ I'm not following you, sorry, and I don't see the discrepancy between my comment above and question 209.2; the source to this question 209.2 is located here at https://forum.bionicturtle.com/threads/p2-t6-209-credit-derivatives-total-return-swaps-topic-review.6217 and includes my...

HI @Galaxy I'm not experiencing any problems with those videos, having tested on two separate devices. Nor has anybody else notified us of a problem recently, despite sizable traffic in the study planner. I will copy @Nicole Seaman but, for what it's worth, every time recently that somebody has...

@Neetu According to the FAQ (http://www.garp.org/#!/frm/frequently-asked-questions) the "Last day to defer to the next Exam" is Sunday April 15th (when registration closes), but you need to directly contact GARP. @Nicole Seaman might know more ... does GARP even work on a Sunday ?? (this might...

Hi @gargi.adhikari As the last question in Hull's chatper 5, this is not an easy question. Briefly is all the time I have today for this, I cannot guarantee I will have the time to go deep in supporting Hull's question, my workload is just too much: I think the confusion is related to a point I...

Hi @gargi.adhikari I am not sure you are actually missing something: by showing that the would-be arbitrager does not make a profit (or makes a profit of zero), you are demonstrating the "proof" that the F(0) must be equal to S(0)*exp[(r-q)*T], because under this proof the key idea is that F(0)...

HI @lRRAngle Say these are called Bond A and Bond B. There can four outcomes if we care about the sequence: Bond A survives and Bond B survives; probability = 70%*70% = 49.0% Bond A survives and Bond B defaults; probability = 70%*30% = 21.0% Bond A defaults and Bond B survives; probability =...