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Hi Jeff, Sorry there is a hole in my cost of carry formula for annual compounding above - this is not true (F = S*(1+r - (1 + delta_a))^T) lease rate (delta, annual compounding) is an negative factor for the cost of carry model, so the correction would be F = S* (1 + r)^T * ( 1 + delta )...

Hi skoh, David posted an excellent article regarding the topic above few years ago, definitely recommended to read: http://www.bionicturtle.com/how-to/article/contango_backwardation_expected_future_price RiskNoob

Hi jeff-1984, It can be derived from annual compound version of the cost of carry (Hull Ch.5, continuous compounding) model - continuous version: F = S*e^[(r - delta_c)*T], where delta_c is lease rate (continuous compounding) - equivalently, the annual compounding version of cost of carry...

Nothing fancy though, and GARP only accepts the printed ticket(i.e. no smartphones). The exam will be held in 16 days, hope the preparation goes well, good luck everyone! :) RiskNoob

Yes, I did not notice about chapters from Ong and Dowd (these chapters do involve VaR) which were assigned in 'Capital allocation' and 'Credit Ratings' in FRM P1 reading plan by GARP. I will take a look at these chapters to grab the basic concepts of VaR. Thanks :) RiskNoob

VaR is one of the P1 topics that I would like to pay attention in upcoming focus review - VaR is somewhat introduced in T1 and T2, however Allen Linda's chapters (especially chapters in T4) seem to be criticized quite a bit (usage of delta etc). I am wondering whether VaR basics mentioned...

GARP's assigned readings are not structured efficiently (in terms of relevance and difficulty) but I found the readings are quite valuable so far - A lof of BT's practice questions's solutions are quoted directly from the assigned reading. So whenever I got wrong/stucked from the question, I...

Thanks for the big hint, and here is my second try: From a vector space of random variables, and it can be shown that E(XY) is an inner product. And the norm of X is defined so that norm(X) = sqrt (E(X^2)). Then by CS inequality says: | E(XY) | <= sqrt(E(X^2))sqrt(E(Y^2)) Specifically, | E[...

Hi Aleks, As for the second one with the intermediate value, it can be said that around 62.5% of the variation of dependent variable can be explained by the independent variable, and the remaining percentage can be explained by the error term. Wonder whether I fall into the trap? As for the...

Thank you David for derivation of the correlation in terms of R^2. It makes sense now. Wish there were selection options for Like x 2 or Like x 3! :D

Hi David and BT folks, In Chapter 4, SW, the author states the following: "Finally, the R^2 regression of Y on the single regressor X is the square of the correlation coefficient between Y and X." There was no further explanation on this but it was not so trivial to me. :confused: There...

Thank you David! The link definitely helped me to get going. :)

Hi David/Suzanne, I want to see the response to the above query but several viewthreads such as the above seem to be broken.:eek:

Hi Suzanne, Yes, I looked at it too and the FAQ above and reminded me when I actually looked at the 'table of contents' in the handbook in the amazon - I found out that I need some raw materials than the handbook for my case. Both posts from the above helped me to decide.:) Thanks, RiskNoob

Thanks (Susanne?) for re-arranging the post. I see. By looking at the table of the contents of the handbook, I found out that topics seems to be simplified and does not closely follow AIM statements. So I just have ordered (a bit pricey) Core books from GARP. Thanks Aleksander for the...

On second thought, found out that this post is more suitable in 'About FRM'. I wonder If I could delete it/move to another section?

Hi David, I plan to study FRM P1 by mostly using BT materials(study notes + tons of practice questions from BT). By briefly looking at the study notes, I feel that I still need selective topics in core readings for the supplementary contents. Don't get me wrong, the study notes' quality is...

I tried with different PC (Adobe reader 8) and it works fine. I will take a look what went wrong my first PC. I have just purchased L1 Tier1 package for 2012 Nov exam L1. Looking forward to have valuable time with BT. Thanks!:)

Hello BT, I would like to take a look at sample study notes before purchasing a BT FRM package, but I can't open the files (tried all 5 sample notes in How-to study notes section) - Adobe reader complains that it is either not supported type or file was damaged. I am using adobe reader 9...