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If a stock price of a company goes up, what happens to the bond price of the company.. Does the bond price go down..If so can you kindly advise the reason.... Regards

In the BIA approach, if the sum of Gross income is negative, we exclude it, in calculating the avaerage. what happens if sum of gross income of a particular year is zero, should the divider be 3 or 2 in calculating the average.. Regards

Hi In the non parametric approach, under "Historical simulation usng non parametric density estimation" dowd says if we have 100 P/L observations, to obtain var at 95% confidence level,we need to take the 6 largest loss. Is that right? Should't it be the fifth largest loss? Regards ..

Th probability of an asset price being above the strike price at the matrutiy of an option is N(d2). Hull has used this to value cash or nothing call option...but uses N(d1) for an asset or nothing call option... The only difference between these two options is what the holder would receive...

Hi I understand that liquidity may be measured by the size of the trade, it takes to move the market. Can you confirm , if smaller the size of the trade to move the market,greater the liquidity.... Regards

Hi In regards to "short squeeze" a)I such a situation would arise if the broker runs out of places from which to borrow shares. So even if the investor wants to keep the short position open, the broker would close the position if he is unable to borrow the shares... Kindly let...

Hi 1) Hull defines Hedge effectiveness as the proportion of variance that is eliminated by hedging The variance refered here a)is it the difference in variance of the ( underlying and the hedged portfolio) The hedged portfolio includeS the underlying and the hedging instrument...

Hi Hull has graphed the relationship between variance of the position on hedge ratio The relation ship represents a smiley curve.. Can you advise if the position that is being refered to here... includes only the underlying say a stock or it also includes the hedging instrument that...

Hi Rene Stulz says "small firms earn more on average than predicted by CAPM". The reason is investors require a risk premium to bear other risk other than CAPM's systematic risk ... can you kindly explain the reason behind it.... why this is only for small firms and not large firms....

Hi How do we differentiate default vs counterparty risk Regards

Hi Can we have the link for the AIM 2011 Level 1 AIM statement... Regards

1)In one of the practice questions (question 4.06 ) under Quantitative-Analysis_-Gujarati,-Chapters-1--8-Document-1-(L1.T2), it says under sufficiently large d.f., the t, the chi-square, and the F distributions all approach the unit normal distribution... Do they approach unit normal...

Hi David 1) In one of yur practise questions, it's been mentioned that GARCH is a normal mixture distribution... Why is GARCH called a distribution...Isn't it a model to forecast future volatility....where does distribution come into play here.. 2) What are the ways to estimate...

Hi David In the comparison of GARCH to Mean reversion stochastic model, a) is the drift rate equal to "a" or is equal to a*(VL -V) where a = 1-alpha-beta b)what is the variance rate in this comparison c)what does it mean by a positive / negative drift.. Regards

Hi David Is there an option for me to download the practise questions.. Regards

Hi Would FAT tail appear only in unconditional distributions and not in conditional distributions... Regards