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Hi David, I just want to clarify in Grinold Chapter 14, what's the relationship between the portfolio construction techniques (1) Screens (2) Stratification (3)Linear Programming (4) Quadratic Programming and the Refine Alpha and the use of a simple unconstrained mean-variance optimization to...

Hi, I'm going through the structured finance reading material and have a few very basic question that I'd like to clarify before moving on. Q1: Is Structured Product simply a security created through the process of Structured Financing (e.g. A class of security with higher credit rating than...

Hi, I'm planning to take part 2 exam this coming May. But it's been 2 years since I passed the part 1 exam, and most of the material is a bit of a blur now. Could someone shed some light on how much material from part 1 will be tested for part 2 (if at all)? Do I have to know details such as...

Hi David, I remember in one of your videos you mentioned that there are 3 approaches to VaR Historical - historical data Monte Carlo - future data Parametric - no data My question is: for MC, the first step is to generate price paths using GBM. For that, while e is randomized, don't we...

Hi David, What's the difference between a bull spread and a bullish collar? The final graph after combining the options looks similar. I'm sure there are some differences though. Could you elaborate? Thanks, Ying

Hi David, I'm looking at page 91 of the Study Note P1.T2 where you compare Monte Carlo with Bootstrapping. What I'm not clear about is how is Bootstrapping different from Historical Simulation with random sampling? To me, the Bootstrapping method, as discribed in the text, is more in line with...

Hi David, As I read the chapters on CAPM, I'm a bit confused as to what's the relationship between SML, CML and CAPM. The book seem to associate CAPM exclusively with SML, but CML is also in the same chapter. Could you kindly explain a that's the association between CML to CAPM. Is CML also...