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Has anyone seen sample questions on Jensen's inequality? I am just wondering if we have to know it for part II. Would appreciate feedback. Best, S

Following up on this.. any comments?

HI David, There are a lot of differences between Basel II/III and Solvency II (insurance). Do we have to know them all. I am just wondering given the time left to exam, if I should concentrate on memorizing them or not. Please advice. Best, S

The capital structure of HighGear Corp consist of two parts. one 5 yea bond with FV of $100M and the rest is equity. The current MV of the firm assets is $130 and the expected rate of change of the firm's value is 25%. The volatility is 30%. The firm's risk management division estimates the...

Hi David, I was wondering if you heard back from GARP regarding risk weights. Just wondering if I have to memorize them at this point. Best, S

Actually I understand the answer.. I just like to know if we have to know this for FRM 2 this year when it is a really a topic from FRM 1. Best, S

Hi David, Question number of 7 of FRM exam 2012: You are evaluating the credit risk in a portfolio that has loan a and b. you are interested in the risk contribution of each of the loan to the unexpected loss of the portfolio. Given the information in the table below, and assuming that the...

That's great. Thank you.

Hi David, Wanted to follow up on the formula sheet. Have you already posted a link? Also did you hear back from GARP re memorizing the risk weight. Very best, SAra

Hi Suzanne and David, Are you planning on post any videos' on 2013 current issues? for instance I could not find any videos on Sovereign Creditworthiness?

I have the same question as Jennyshen. When I first did the question, I selected A as well as in a merger situation, you go long the target and short the buyer. I am not clear as to why the answer is not a? Anyone knows? David, would you clarify please? Best, S

Many thanks. Noted. Will ensure proper place of posting next time.

Hi David, Lin Ping is valuing a 1 year CDS which pays the buyer 75%. PD is 5%. RF is 3%. Assuming defaults can only occur halfway through the year and that the accrued premium is paid immediately after default. What is the estimate. 380bps 385bps 390 bps 400 bps Would you please explain the...

Hi David, Would you kindly get back to me regarding the second part of my question: With respect to standardized approach. Do we have to memorize the risk weight? For instance what risk weight a BB bond would have or an AA+, etc. Best, S

That's great. It would be very helpful to put all the formulas and key concept in a formula sheet as you did for Level 1. Best, SY

Thank you David:)

Looking forward to your response.

Hi David, I don't understand how you came up with the answer. Can you explain the deductible part and where you get 12.5 from? Do we have to memorize the risk weights? Many thanks, S =============================================== B5.3. If a bank retains the equity (junior) tranche of a...

Good morning David and hope you are well. I have two general questions please. I see some comments referring to your formula sheet for FRM 2? where is that saved? I am sorry, but have not been able to locate it. Would you please let me know as I think that would be very helpful. With respect...