# Search results

1. ### FAQ Before Exam Pre Exam tensions...

Hi FRM aspirants... How is your preparation on ??? Feeling Blank...

3. ### Tuckman - Mortgages and MBS

@Rohit there are videos available in youtube on MBS and ABS, but topic is easy to grasp and don't require any video ....
4. ### Calculating revised VaR Hybrid approach

The 5th percentile should be between lowest and 2nd lowest transaction i.e. -4.70 % -4.10% then how -3.6% and -3.4% choosen?? Please clarify
5. ### GARP.FRM.PQ.P2 question in derivation process of merton model credit spread

Logarithm quotient rule logb(x / y) = logb(x) - logb(y) is the formula used for calculation its not 1/x it x/y ...
6. ### Regression

Eureka ... I Got It.... Beta = Cov(x,y)/Var(x) , Correlation = Cov(x,y)/Var(x)Var(y) =beta/var(y) , therefore Beta = Correlation * Var (y) = correlation* (Y- mean of Y) Return on A given return of B =3%, = Mean Return + Correlation* (RB-2%) +e(e=0) , RA =2.90% Is it correct.........???:):D
7. ### Regression

:confused:Q. Consider Stock A & B. Assume their Annual returns are jointly normally distributed. the marginal distribution of each stock has mean of 2% and standard deviation of 10% and Correlation of 0.9%. What is expected annual return of stock A if the annual return of Stock B is 3% Ans...
8. ### Bionomial Distribution

thanks @brian.field it boosts confidence . :)
9. ### Bionomial Distribution

In exam there are 10 questions with 5 options, if you will score 3 or more correct you will pass. What is probability that you will pass just by guessing ???? Ans: The passing rate is : 1/5 =0.2, Failing rate=4/5=0.8 Passing rate by guessing 3 or more correct questions =1- (failing by 1...
10. ### P1.T2.300.1 Probability functions Question

@PortoMarco79 ... The question is solved as below.. but I need more clarifications on this
11. ### P1.T2.300.1 Probability functions Question

plz elaborate ? correct answer given is 0.80
12. ### P1.T2.300.1 Probability functions Question

A Simple question is disturbing me.. I don't know why but need more clarifications.... Q: is : The correct answer is : 0.80 Please explain in details so that I can get it easily... @brian.field Please help
13. ### Interest Rates

@ShaktiRathore ....... Instead of X*100/2 ... we may consider coupon as 50X => 50 X *(DF1+DF2+DF3+DF4) + (100+50X)DF5 =97 (as coupon for 4 half years is same 100*X/2) DF is Discount Factor... By solving this I am getting answer X = 8.77% ........Advise me where I am wrong in my calculations...
14. ### Interest Rates

John Hull 4.33. Portfolio A consists of a 1-year zero-coupon bond with a face value of $2,000 and a 10-year zero-coupon bond with a face value of$6,000. Portfolio B consists of a 5.95-year zero-coupon bond with a face value of \$5,000. The current yield on all bonds is 10% per annum. (a) Show...
15. ### Black-Scholes-Merton Model

@Deepak Chitnis I want to calculate N(d1) for N(0.74644) actual figure not round off to 0.75 it will differ the answer
16. ### Portfolio Volatility

@David Harper CFA FRM your shortcut is amazing.....
17. ### Black-Scholes-Merton Model

hi @David Harper CFA FRM how to calculate value of N(d1) if d1=0.74644 without rounding off, as per my knowledge and idea it should beb N(0.74)+0.644((N(0.75)-N(0.74)) = 0.7704+0.644(0.7734-0.7704) = 0.772332 but in book correct value is given 0.7731. I don't know where I am wrong in my...
18. ### Portfolio Volatility

thanks @Deepak Chitnis Sir....Thanks for step wise clarification......
19. ### Portfolio Volatility

Can you help in solving the sum step by step A portfolio is invested equally into two funds, each with normally distributed returns. The first fund has an expected return of 6.0% with return volatility of 8.0%. The second fund has an expected return of 10.0% with return volatility of 15.0%. The...
20. ### Whatsapp FRM Part 1 May 2016 Group

Hi FRM aspirants.......Please add me to watsapp group my no. is +971-507115909 desh Dubai