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ok thanks.

does anyone remember what the last questions were in the blue book about sortino and sharp? i thought they wanted to know how they were related and i had no idea

hmm. this doesnt sound like the same question.

does anyone know why probabilites in the binomial were 5% and 10% or something close? I always thought it was p, 1-p. wonder if thats why i couldnt get the answer

so i guess you would subtracted the dividend from the stock price? but did you need to compute present value too?

= (39.03)(0.58) − (40)−(0.09)(0.5) (0.4359) = $ 3.671 . this is the answer from Hull with dividends. did they want use to computer the present value of the dividends? or was it a trick question. either way. the exam is way way way too difficult

law of one price was near the end. I also couldnt believe they put in a put call arbitrage question. I had no idea how to solve it.

I also struggled with the BSM question with dividend and the binomial. The vairation margin question was confusing. the end of the test sharp sortino questions left me clueless

the exam was impossible.

This is from Tuckman chapter one study notes. Should this be 100x(1+(.0125/2)? $100.55 = (0.5)[$100 + (1.25%/2)] → (0.5) = 0.99925

thank you for the help

FYI this is from the online quiz

A stock has a beta of 0.75 and an expected return of 13%. The risk-free rate is 4%. Calculate the market risk premium and the expected return on the market portfolio. Answer: According to CAPM: 0.13 = 0.04 + 0.75[E(RM) − RF]. Therefore, the market risk premium is equal to: [E(RM) − RF] = 0.12 =...

I just meant in the answer portion of the question.

While the riskfree rate is 1.0% and the market index (e.g., S&P 1500) has an expected return of 9.0% with volatility of 20.0%, a portfolio with covariance (to the market index) of 0.030 returns 10.0%. According to the capital asset pricing model (CAPM), what is the portfolio’s alpha? -2.0%...

Would it be possible to do a video on pricing options in R with MC? Thanks

Why in Miller notes does the covariance matrices indicate G * B =3. G =.6 and B =1, what am I missing? Is the matrix inducatimg to multiple the values?

I can’t believe pass rate was 41.8%

I was trying to provide some feedback on the exam, how i was feeling afterward, and why I thought it was difficult. I realize that I am still the one who did not pass the exam and I blame that 95% on myself. Between the notes and the questions there are thousands of pages and I could not...

Ok. This is my major criticism of BT. I did not use another provider other than GARP books. There is way way WAY too much info on the site. I know this is not a new criticism and David and Nicole are aware of it. I dont know how to focus properly when there are thousands of pages and notes...