Can someone help me solve for R here? The book gives a solution of 4.953.
Thanks
2.5e^-0.04x0.5 + 2.5e^-0.045x1 + 2.5e^-0.048x1.5 + 102.5e^-2r = 100
THanks
Hi @David Harper CFA FRM
I was watching the chapter two video this morning while getting ready for work. I came across this and had a question for you.
What is the probability of just an "up" situation?
Is it (0.7) x (0.8) + (0.3) x (0.3) ? = 0.65?
Ok. I misread the question. Sorry.
You are trying to pick a Bond (B) and an Industrial security (I).
P(B) = 10/20 (10 bonds in the pool 10 equities in the pool)
P (I) = 14/20 (6 utilities in the pool, 14 industrials in the pool)
So, you are trying to figure out the P (B & I) --which is the...
This is really not my strong point but, I figure that since you have 6 chances out of 10 to pick an industrial stock and 8 chances out of 10 to pick an industrial bond, you have 14 chances out of 20 to pick an industrial security.
14/20 = 0.7
Hi
Hi @David Harper CFA FRM
Was working on this one last night.
PV of the coupon, $5.803.
Could not get this.
Got $5.73x and tried again and calculating $5.85x
What am I doing wrong here? I am assuming I am doing something wrong here with the day counts.
thanks
Hi @David Harper CFA FRM
Love the videos.
Am on video Stock & Watson 4 &5.
Your first question, find small r.
I had it 98% of the way.
One thing threw me off: you mention in the question that the TSS = 90.625 dollars ^2
--- what does the ^2 part mean in the TSS? Do I have to square the...
What is the best way to study?
I have been "out of it" for over 10 years. Decided to throw my hat in the ring.
Shall I just study from the BT notes? Or compliment with Schweser?
Opinions! Ideas! Thoughts!
Cheers!
Hi
It has been 15 years since I last touched this stuff. I am very much not up to snuff any more.
Can someone assist?
How does: f(x) = x/8 - 0.75
become: F(X) = x^2/16 - 0.75*x + c.
Thanks
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