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I passed. Congratulations to all who passed. Is anyone able to see the quartile data or the "Exam Results Letter"? (I can't see mine yet)

What do you mean that "Probability of default is constant."? Don't we have to use different probability of default values (e.g. 35% and 40%) in the calculations above? Or, were you referring to the probability of default values that were given on the exam?

From what I recall, the problem was something as follows: Cash Flow in Year 1: 1,000,000 with a probability of default of 35%, a recovery rate of 70% and a discount factor of .90 Cash Flow in Year 2: 750,000 with a probability of default of 40%, a recovery rate of 80% and a discount factor of...

From whom did you hear this?

I believe the answer to this question was that neither approach relies on a normal distribution. Did anyone else select that answer?

The threshold amount and the minimum transfer amount are additive. If the threshold is 1.2 million and the exposure goes to 1.3 million and the minimum transfer amount is $200,000, then the exposure would need to be greater than $1.4 million in order for collateral to be posted, right...

I studied for 4 months (> 300 hours) and found it to be a very difficult exam! I'm hoping for 50% correct...

This makes perfect sense now. Thank you to Matthew Graves and Arnaudc.

Thanks, Nicole. Now that I've read through all of the thread you provided and other associated threads, my question is now: When do you use each of the following? Are there certain trigger words we should be looking for? [1– exp(-λ * time_2)] - [1– exp(-λ * time_1)] vs. ( [1– exp(-λ *...

Question 76 on the 2016 FRM Part II practice exam: A major regional bank has determined that a counterparty has a constant default probability of 5.5% per year. What is the probability of this counterparty defaulting in the fourth year? The probability of default in year 4 =...

Thank you, David. Yes, I see 7 concordant pairs and 3 discordant pairs. Given the following: (C - D) / (C + D) 4 / 10 --> 0.4 Thanks again.

I'm interested in solving for Kendall Tau. Can someone help me with this? The rankings for some stock returns are: X Rank..... Y Rank 1.................... 2 2.................... 4 3.................... 1 4...

Hi All, I have a question about the formula for Z-scores. I've seen the formula as: a) Z-Score = (observation - mean) / standard deviation and as: b) Z-Score = (sample mean - population mean) / (standard deviation / SQRT(sample size)) Thus far, I've been using formula "a" above. When...

Hi David - what is the formula for the discount factor that you're using (in cell F6 of the video that you posted)? Thanks!