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Many thanks, @Nicole Seaman! Could not be more happy to winner the of the week again. I will go for the Amazon gift card please.

Hi @David Harper CFA FRM, I also think Amenc is still a valuable reading, even if it does NOT come with a lot of background (derivation) etc. about performance measures it summarises some pros and cons of the measures in quite a good fashion. For the keen FRM exam taker or mere forum reader I...

Hi @David Harper CFA FRM, I want to kick off the following discussion about the intercept term in an OLS regression (except our well known and familiar interpretation in a CAPM setting). In case an OLS regression yields a positive or negative intercept which is significant what does this imply...

to cover both forum posts: Actually this is question is a tricky one and I would like to dig a bit deeper here in order to be crystal-clear. The notation with Asset A and Asset B for the market portfolio and simultaneously being A and B as well for the investors weights is misleading!! In a...

Actually this is question is a tricky one and I would like to dig a bit deeper here in order to be crystal-clear. The notation with Asset A and Asset B for the market portfolio and simultaneously being A and B as well for the investors weights is misleading!! In a sense the most critical part...

this has already been discussed here: https://forum.bionicturtle.com/threads/p1-t1-elton_ch13-xlxm-capm-sml.10128/

No help/input at all?

Hi All, Hi David, I would like to reach out with a perhaps very straightforward/easy question but I want to be reassured about the following: Linearity of the OLS regression is not one of the Gauss-Markov conditions, however, non-linearity often happens in fields like labour economics: age vs...

Even if this is not the final solution to the question, but Derman writes: 'Why are we interested in jump models? Because we observe jumps in reality. Most security prices don’t just diffuse smoothly as time passes; their movements are punctuated by jumps. Stocks and indexes definitely jump...

E. Derman has written a book called 'Volatility Smile' last year. I will check and see whether there is something valuable in there with regard to your question.

I am quoting @David Harper CFA FRM here (post back in 2012) even if I would like to know more about this myself: Hi sassing, good point. The study note should be revised because it is trying to capture (summarize) two separate points by Hull (it is unclear which the AIMs means to refer to) ...

Hi @Nicole Seaman, many thanks! I would like to go with the Amazon gift card please.

The BT questions are indeed and undoubtedly better (not mentioning the forum support!) but not always trickier (if we wanna call it like this). It is self-explanatory that the term 'tricky' itself is a fine line and has to be defined by everyone him-/herself. In short, to put things into...

I slightly disagree with this @Nicole Seaman. I have encountered exam questions much harder than some BT questions. Most BT questions do require more calculation etc. for sure and go into some (excellent) level of technical detail (which is much appreciated for the eager learners, but most of...

I see, thanks @Matthew Graves! As he was not pointing towards this and I have not had the Meissner book at hand the explanation makes sense. Apparently he then has standard deviation in dollar terms. Quite unusual actually but if the the computation is water-proof then I am happy with this...

Dont know where you have these figures (page in Meissner's book!) but the standard portfolio variance formula (for 2 assets) with your given data yields: weights: 8 mil + 4 mil = 12 mil Asset A = 8/12 = 0,66 Asset B = 4/12 = 0,33 sigma^2 (portfolio) = 0,66^2* 0,015^2 + 0,33^2*0,02 +...

Has anyone already received his/her final certificate (in Europe)? They said they will send them out in March.

In this case yes because the sum equals to a straight number (100), otherwise: $Value Asset (A)/Total $Value of the Porfolio = weight of Asset (A) $Value Asset (B)/Total $Value of the Porfolio = weight of Asset (B)

Do you have some more information about this question please otherwise it is hard to help you with this. If you have no weights and I usually assume you have 50/50 among the two assets. How do you wanna compute weights if you have no information?

Excellent! It is the first link I was looking for, David. Thank you for your help with this!