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@MNaye8582 I will make this a priority going forward.

@kc Thanks for the feedback. I will make this a priority going forward.

@Rajarshi_2024 Unfortunately, In most cases, GARP doesn’t include the full end-of-chapter solutions in their candidate books only the learning check questions. From my recollection GARP started publishing less solutions with the advent of their private label books in 2019.

@SCham7768 That is correct. GARP changed the release from the first week of June to June 26th. I haven't seen reasoning from GARP but my interpretation is that they need more time with all the global CBT windows before they can set the cutoff score for each exam.

@IDosh1374 It is hard for me to verify everything without an XLS. However, from what I can tell: You correctly computed each asset‐side cash flow (loan issuance, coupon payments, bond sale, etc.). You correctly computed each liability‐side cash flow (borrowing, interest expense, principal...

@IDosh1374 What reading is this in reference to?

@IDosh1374 Variation Margin is the daily (or intraday) cash payment required to cover changes in the market value of a position. Whenever a derivative or collateralized exposure moves against you, you’re asked to post variation margin so that your counterparty holds enough collateral to...

@IDosh1374 1. V = your total position to liquidate, λ lambda is the Lagrange multiplier that enforces your “sell it all” constraint in the optimization. 2. It’s your budget constraint: across your n trading days, the sum of the daily sell‐orders q1+q2+⋯+qn must equal the full position V...

@kc That is a tough situation. I have never heard of something like this happening before. I am not entirely sure what to do.

@coffee_achiever I don't know everything about the video off the top of my head but I hope what I wrote below helps and let me know if you have more specific questions. Reduced volatility may also decrease earnings (think about an OTM option close to expiry). Think about an out-of-the-money...

Below is the updated pass rate chart (cc @Nicole Seaman ). Really brief observations: General Trends Long-Term Stability Since May 2010, the long-term average (LT μ) pass rates have been 46.8% for Part 1 and 56.5% for Part 2. The Part 1 pass rate has remained relatively stable around its...

@Peter S Aa of 2025 we no longer offer the basic version. Our foundation series includes video lectures, study notes, slides, and practice questions while the mastery series includes our learning spreadsheets. The learning spreadsheets are great for being able to recreate problems and create new...

@ejaz_malik Hi, I know the naming convention can look complex but let me try to break it down. The P1 (P1-T2-QA1-QA2-QA3-prob-random-variables-v3.xlsx) stands for part 1 (AKA Level 1 since there are 2 levels to the exam). The T2 denotes that this is the second topic of Part 1 - Quantitative...

@kc Think of the hazard rate (λ) as a baseline rate of failure, while the marginal default probability adjusts this rate to reflect the survival of the entity up to the specific time period. Over time, the marginal probability decreases due to the compounding effect of survival probabilities. So...

@kc Hi, I think the confusion is because the cumulative default probability and marginal default probability are related but distinct. Cumulative Default Probability: This gives the total probability of default occurring by time t1. It's an aggregated measure. Meanwhile, Marginal Default...

@FLIN1386 Do you mind sharing a link to your spreadsheet?

@AVasa7074 If 15% defaulted that means that 85% did not default. Here we have a total population so our denominator is just simply N. Hope this helps!

@NAndr5521 I'm working on fixing this. Because the post is so old its a little hard to find the links.

Hi @MMonk4392 , Both C and D are mathematically equivalent. However, I believe the more conceptually accurate answer is D since it represents the simplified and final form of the equation where the expected return E(Ri) equals the expected return of the market portfolio E(RM). As David has...