Search results

  1. M

    If you want to work in risk or regulatory reporting, Yes. I have been working in this industry...

    If you want to work in risk or regulatory reporting, Yes. I have been working in this industry for a long time and there are a lot of high up people who could not pass this exam. We in the industry who have taken, or in my case are about to take, the exam know if you can pass the FRM you can...
    • mdke250
    • Profile post comment
  2. M

    Jensen's Inequality

    Oh, somehow i read it and got it in my head that .0525 was E(RM) not "market risk premium". Thats for pointing that out, have to read more carefully.
  3. M

    Jensen's Inequality

    Why did you use 0.0485 twice in the last parentheses? αP = E(RP ) − RF - βP(E(RM) − RF) = 0.128 - 0.0485 - 0.7 * (0.0525 + 0.0485 - 0.0485)= 0.0427 it seems from the formula that the following would be correct: αP = E(RP ) − RF - βP(E(RM) − RF) = 0.128 - 0.0485 - 0.7 * (0.0525 - 0.0485)= 0.0767
Top