David, you are awesome and should be on GARP Board!!
I think the list on page 7 of your materials is someone incorrect as I though cdf (i) = cdf (i-1) + pmf (i) and for e.g. cdf of 19 exceptions does not correspond cdf of 18 and pmf of 19
referring to the Study Notes Jorion Ch. 6 , page 5 & MR Book 2018 p. 51:
For model p=3%, when I calculate the (4-7.5)/ SQRT (0.03*0.97*250) ) I get = - 1.29 which is in range of cut off range for 97% two sided test, z value = + / - 2.17. Why is it then poor model?
Thank you *very* much for your time to provide this explanation to me.
I appologize for delay in reading and my "thank you" note :) - work was a bit hectic.
In case you are to sit for L2 2015, I wish you best of luck,
Thanks a lot again!
Dear BT Team
Would you please clarify a bit the notion of independent amount as per study notes (pages 32-33)? I am missing something here as it is stated
(1) independent amount (IA) is a negative threshold
(2) conceptually, IA is similar to initial margin
(3) the threshold represents...
Thanks for your answer.
If I am a bit too frank, or misuse the English language, please excuse me. I did not know that number of hours of video can be rocket science. To me it looks quite simple: number of videos times the average length. I study well when a topic is introduced...
Dear BT Team,
Happy New Year!
I am writing regarding BT study packages for FRM Level II May 2015.
How far are you with preparation of FRM Level II materials? Have you finished adding all new topics/chapters?
Second how many hours of videos you provide in your Advanced/Pro packages? Are all...
You are awesome!!!
Many thanks for detailed explanation. I will redo the question once again prior to the exam and hope no further questioning of the logic behind the solution(s) arises :)
:) :) :)
P.S. Your theory on human behavior and psychology is surely valid. When the...
God help us!
I am nowhere with my preparation :( I hope guys the situation is not as dark on your end :)
Anyways, I am comparing logic behind questions P1.T2.209.1 and P1.T2.71.2.
Sample size in both questions is large, by definition (e.g. n> 30). Yet standard error in the P1.T2.209.1 is...
I wonder if there is a difference in result of this question if, ceteris paribus, instead of
Ho < or = 27
Ha > 27 as in the old question P1.T2.210.2, hypothesis was
H0 > or = 27
Ha < 27.
I thought that for the first case t-statistics was negative (- 1.71, since (mu...
As in my another post on Monte Carlo (MC) (P1.T2 323.3), here as well I have a problem of understanding concept of so called "discrete" GBM. Given that GBM is not differentiable, one needs to apply Ito's Lemma (even for MC method), which is not done here. Comments, pls? Thanks