binomial-distribution

Learning Objectives: Explain the distinctions between economic capital and regulatory capital and describe how economic capital is derived. Describe the degree of dependence typically observed among the loan defaults in a bank’s loan portfolio and explain the implications for the portfolio’s...

@David Harper CFA FRM - David, could you please explain how you arrived at values of k as 6 (prob. of ending at $100) and 9 (prob. of ending at $177.16)in following example noted in the Study notes (Chapter 3: Common Univariate Random Variables, pg.6)?

Learning objectives: Distinguish the key properties and identify the common occurrences of the following distributions: uniform distribution, Bernoulli distribution, binomial distribution, Poisson distribution ... Questions: 20.5.1. Assume two continuous uniform random variables, X ~ U(a1, b1)...

Learning objectives: Define and calculate expected loss (EL). Define and calculate unexpected loss (UL). Estimate the variance of default probability assuming a binomial distribution. Calculate UL for a portfolio and the UL contribution of each asset. Questions: 921.1. The following simplified...

The skew is the third central moment divided by the cube of the standard deviation. Here I calculate skew using the binomial distribution.

Learning Objectives: Distinguish the key properties among the following distributions: uniform distribution, Binomial distribution, Poisson distribution. Questions: 713.1. Let each A_uniform and B_uniform represent independent random uniform variables, where A_uniform falls on the interval...