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I understand that deposit rate is the interest rate paid by financial institutions to deposit account holders, if the deposite rate increase, the bank should pay more interest to their clients. Therefore the numerator of RAROC decrease and also the RAROC. Do you agree?

According to Schweser, "Unsmoothing returns affects risk and return estimates, and could have a dramatic effect on returns" . I remember one question that one option available was said: "Unsmoothing volility affects only risk" and I select it. Is it wrong? Please could anyone clarify? Thanks!

Hello, there was a question about Backtesting Var and its assumptions. The response was " the exceptions are independents"?

Hi David, I did the FRM part 2 exam in November 2016 but unfortunately I falsed. I remembered one questios about Credit Var, which I was not able to get the solution. Please could you help me? question: Bank has a basket of 500 short CDS. Each CDS for $1.000.000 bond, which has a 4%...