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Hi @JLim3856 In the exam, you will not be required to "calculate" the p-value (beyond scope of a calculator). At most, you may need to interpret it or refer to an obvious p-value per header in a lookup table snippet (the exam provides a Z lookup which--I think you understand--implicitly has...

Hi @AUola2165 GARP is wrong on both 2.4 and 2.5. ES is a conditional average and has only one answer, ever (regardless of continuous or discrete). It has one answer for the same reason that there is always and only one sample mean for any given sample. In the case of 2.5, the 99% ES is the...

Hi @sulemanms202 It's really really hard (impossible?) to give a definitive answer to a virtually universal memorization question. The strict and obvious answer is: No! You definitely do not need to memorize "every single line time and detail" in all of those tables. I'll go way further: you...

@Sixcarbs I agree. My question is, despite the language (let's stipulate that GARP has a policy and it is well-explained: I didn't read it myself but we know they are good at CYA. Their mock PQs may bit loose, but their not their CYA language). So let's stipulate that their policy was not...

@Sixcarbs He's out $600, is what they are telling us.

@JMars7424 absolutely, I feel for you (that's a lot of money). We will do our best ....

Thanks @Nicole Seaman if you are sending our contact an email, can you copy me? I'm troubled by this: it's a registration fee, if no exam site was selected, how can the transaction be considered complete? Thanks David

Hi @HPASI2304 What I wrote above is the more fundamental, relevant relationship .... ... because we hedge interest rate increases with a short position in interest rate futures. The Eurodollar futures contract typifies this because the quote price is 100 minus the rate. Or as Hull explains...

Hi @JStir4521 Probability must be between zero and 100% inclusive such that either P(B) = zero or P(B) = 100% are allowed. If P(B) = 0%, then A and B must be be independent per the definition. That's the easier question, for me. To be honest, I struggle with the question of mutual exclusivity...

Hi @TEkaz8632 i moved your query here so you can see my reply above at https://forum.bionicturtle.com/threads/binomial-tree-question.23398/post-83158 i.e.,

Hi @mbbx5va2 It is unwise to opine without context, but in general, you can apply the typical discrete or continuous translations such that a credit spread of 3.0% per annum with annual compounding is equal to ln(1+3%) = 2.9559%. See example here from GARP mock at...

Apologies to you Goher (@gsarm1987 ): your response is the correct response here! I had this thread backlogged, and in haste, I provided the XLS. For future reference @Shau_2207 please know that he's correct: these learning XLS are part of the upgraded package. Thanks for understanding.

Hi @Shau_2207 Please see the sheet at "29.7 Three Steps" and the subsequent in the attached "P2.T5.Tuckman_Ch7_v1.4.xlsx" (also here at https://www.dropbox.com/s/4ords2u1c2l20dy/P2.T5.Tuckman_Ch7_v1.4.xlsx?dl=0)

Hi @AToma4828 A cumulative distribution function (CDF) which describes a random variable is a plot of probabilities on the Y axis (from 0 to 100%) against, on the X axis, the range (aka, support) of outcomes (possible values) of the random variable. If it's a fair die, the range is {1, 2, 3, 4...

Hi @CanvasEcho Yes, that's a mess, you are correct. The margin of error (ME) = SE * t_critical where SE = sample σ/sqrt(n) such that ME = sample σ /sqrt(n) * t_critical. Therefore, sample σ = ME/t_critical * sqrt(n) = 5.23%/2.57 * sqrt(37) = 12.379%. And we can easily just test this with 7.55%...

@jchun8523 Yes @yLam4028 is correct: those pairwise correlations are purely assumptions (you would not be able to derive or replicate them!). They are colored in YELLOW which in our XLS does connote input assumptions. Thanks,

Hi @prianthar Rates should (almost) always be expressed in per annum terms; e.g. above the S(0.5) = 5.00% and S(1.0) = 5.15% are inputs and therefore they are per annum (aka, annualized). To discount discretely depends on the compound frequency and where k = the number of periods per year, the...

Hi @prianthar Yes that is correct. In market risk (what you are calling the book), "absolute VaR" as given by aVaR = -μ + σ*z has the positive drift offsetting the unexpected loss. But in liquidity VaR (LVaR) which adds the liquidity cost--if we are incorporating spread volatility--the "worst...

Hi @gregorius89 I'm not sure, I don't think that should be the case; i.e., our notes should match the current syllabus/LOS. We will take a closer look Monday, I won't have time today/Sunday (copy @Nicole Seaman ) ... Thanks, David

Hi @CanvasEcho MGRM Yes, that's correct. MGRM employed a stack-and-roll, as you (pretty much) show. But (to my knowledge) they never went to delivery in the futures market, which was their hedge. So, it was open the long stack, then next month "roll the stack" by closing that open position and...