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I have found the exam a bit challenging in terms of concepts being testes (OCL, R2, TSS, probability questions). In particular, the areas I have found not quite straightforward were related to quant’s section (my weakest area). Also I did not take my watch (a must!) with me so I wasted some time...

variance(aX + bY) = a^2*variance(x) + b^2*variance(Y) + 2*a*b*covariance(X,Y) but we are given correlation between two returns not a covariance. should it be covariance(X,Y)=correlation(X,Y)* SQRT(variance(X))*SQRT(variance(Y)) so the final formulae variance(aX + bY) =...

similar question in 2010 exam paper par1 question 17: assume that a random variable follows a normal distribution with a mean of 100 and STD of 17,5/. What is the probability that this random variable is between 82.5 and 135? I understand that 82.5=100-17,5 (-1 STD) and 135=100+17,5*2...

while I fully understand how (in explanation) undiversified VAR was derived, I am struggling to understand diversified VAR formulae.. Anyone? thanks

Sorry if my question sounds dumb, but I am still don't get Q1 (distribution between 55 and 65) question (i.e. rational behind getting 0.9332-0.6915=0.2417). Anyone can explain it to me in lame terms? thanks

the solution is "a more effective interest rate risk hedging strategy for multiple cash flows". Can anyone explain why is that? Some numerical example would be great... thanks

Here is my 2 cents from Madrid. In my opinion GARP has gone mad and I have a very strong feeling that it is not long time left until we will see level 3 added to FRM certification programme. It’s now all about cash coming in and fighting market share taken historically by CFA folks. Having...

David and Suzanne , thanks a lot.

David, I need a piece of advice from you on how to organise my preparation schedule. Having 49 days left, I need to get clearer study plan and concentrate on execution. I tried GARP (bunch of articles and no structure) and schweizer (very wordy) materials in the beginning and later decided to...

Hello to everyone, I am thinking of starting FRM journey and taking exam(s) in November 2010. But I need to understand clearly what my preparation strategy should be and whether to take both Levels at the same time. Obviously the sooner I pass this the better but I want to be realistic about my...