I am running through Level 1 FRM and doing ok but where I really struggle is using the calculator.
I have looked at tutorials online and cannot see much on the two questions below.
firstly I wanted to calculate the SMM, I am doing as follows
with a prepayment rate constant at 6%
CPR = 1 –...
I have come across this question and cannot seem to do the calculation in the BA II calculator. The question is:
Use the probability distribution to calculate the standard deviation for the portfolio
State of economy Prob Return
Boom 0.30 15%
Bust...
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