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Consider 3 random variables X,Y,Z Suppose corr(x,y) =0.4 and corr(z,y)=0.3 which of the following statements is true? a) corr(x,z) cannot be negative. b) corr(x,z) has to be larger than 0.3 c) corr(x,z) cannot be negative d) none of the above. can u throw some light on this question...

Consider the following linear regression model: Y= a+bX+e suppose a = .05 b=1.2 SD(Y)=0.26 SD(e)=0.1 what is the correlation between X and Y? can u tell how to solve this one. thanks.

how to calculate the following expresion with TEXAS BA2 PLUS 10e^.05*8/12 thanks.

A bond portfolio manager invests $20 million in a bond issued at par that matures in 30 years, and which promises to pay an annual interest rate of 9%. The interest is paid once per year and the payments are reinvested at an annual interest rate of 8%. The first payment is one year from today ...

and also the calculation part.

Hi david Question no 41 GARP FRM EXAM FULL practice exam 1 can u throw some light on this question. Just let me know how to interpret this question. thanks.

i m still not getting it... can u tell me wat will be the t value in my above example. is it SQRT of 2....correct me if m wrong. thanks.

Hi david can u explain how to solve this question WITH CALCULATION. which of the following loans has the lowest credit risk? Loan 1 year PD Loss given default Remaining term in months A 1.99% 60% 3 B...

Hi david In calculating the size of up move factor U wat does square root of t mean is it time to maturity or the length of the step in the binomial model. for example to calculate the value of a 6 month american call option using a 2 step binomial model wat will be the t value taken here...

also how to convert daily volatility to annual volatility...

Hi david The delta of at the money put option is close to -0.5.Delta goes to -1 as put becomes deep in the money. delta is 0 if put goes to deep out of the money. this was regarding put options. wat abt call options can we take inverse values?

Hi david, there is one chapter in valuation called Quantifying volatility in var models by Linda Allen this chapter is very lengthy can u tell me the relevant concepts which can be tested in exam from this chapter as it includes estimation of volatilies which is also included in Quants. wat...

hi david how to calculate the following expression: 10*e^--0.10*0.25 thanks in advance.

what is the best estimate of the market value of a portfolio of usd 100 million invested in recently issued 6% 10 year bonds and usd 100 million of long 10 year zero coupoun bond if interest rates decline by 0.50% ? please throw some light on this question on how to go about to solve this...

Hi david how to calculate the following expression with TI BA II PLus N=10; PMT=50;PV=-900;FV=1000; CPT I/Y? THANKS IN ADVANCE.

Hi David can u tell what we can refer to to get a good grip on VAR (basic) that is needed in Valuation and risk models. thanks in advance. Regards, Darshan.

thanks david .

Hi david can u tell me how to use natural log function using TI BA ii plus calculator. u=ln(18/20) and also how to calculate the foloowing expression. 6^5*6^-6/5 it is poisson distribution calculation. thanks in advance and do reply soon.

Hi david can u just tell me in simple language wat is debt to equity swap, sale of less developed country loans and Bond for loan swaps.. as i m not able to grasp much abt this concepts.......

Hi david... As interest rate increases the value of call increases and he value of put decreases......... can u tell me how interest rate can change the option values....