# CourseErrors Found in 2021/2022 Study Materials P2.T5. Market Risk

#### Nicole Seaman

##### Director of FRM Operations
Staff member
Subscriber
Please use this new thread to let David and I know about any errors, missing/broken links, etc. that you find in the 2021/2022 materials that are published in the study planner under P1.T4. Valuation & Risk Models. This will keep our forum much more organized. We appreciate your cooperation!

PLEASE NOTE: Our Practice Question sets already have links to their specific forum threads where you can post about any errors that you find. This thread is for any other materials (notes, spreadsheets, videos, etc.) where you might find errors.

Information needed for us to correct errors:

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Last edited:

#### FRMNinjaLeonardo

##### New Member
On p.59 of the notes for T5 R5 Tuckman's ch9, the model highlighted in blue is wrong

##### New Member
Page 70 of the notes for P2.T5 Tuckman chapter 10, starting node of the interest rate tree diagram shows the natural logarithm of the rate rather than the initial rate itself.

#### Ellie_10

##### New Member
On page 34 of the notes for T5.R1 Dowd Chapter 7:

Describe the peaks-over-threshold (POT) approach

Formula 7.18:

I believe it should be Pr{X-u<= x | X > u}

#### kchristo

##### Member
Subscriber
In T5-R1-P2-Dowd, under "Define coherent risk measures.", the definition of positive homogeniety refers to X and Y in the image but only X in the text. (P10)

#### Branislav

##### Member
Subscriber
Dear @Nicole Seaman , regarding Hull, Chapter 18. Fundamental Review of the Trading Book study note, I think square root of ten is missing in VaR formula.

kind regards

#### poojanmehta1

##### New Member
Subscriber
@Nicole Seaman - Am looking at pdf notes of Bruce Tuckman, Fixed Income Securities. The blank page is under Tuckman, chapter 7. (page 22 of the pdf)

Also in the same chapter - Define risk-neutral pricing and explain its use in option pricing, in para one it mentions the example of coin toss for risk neutral pricing. Am assuming the payment on coin toss should be either $2 or$0 (mentioned as 1$) "Let’s assume a fair coin (ie, 50% probably of flipping heads) while the risk-free rate is 3.0% with continuous compounding. You are offered the chance to buy a digital (aka, binary) option that pays, in one year when the coin is flipped, either$2.00 or \$1.00"

#### bollengc

##### Member
Subscriber
in Tuckman chapter8,
page 38 of pdf T5-R5-P2-Tuckman-(MR10-MR14)-v3
the power 3 should be outside of the brackets (1+r(3))^3

#### Torsleno

##### New Member
Subscriber
Hello,

Hull, Chapter 18. Fundamental Review of the Trading Book
T5-R7-P2-Hull-RMFI-v3_6212885dcb64c.pdf
Study Notes p10

I guess it should be 'back-testing an ES is more difficult than a VaR" ?

Subscriber
Hello,

Little typo in

### Study Notes: Schroeck, Chapter 5: Capital Structure in Banks​

Define and calculate unexpected loss (UL).
Page 7

the sigma^2 should be variance of LR/PD (not standard deviation)

#### cnomGreen

##### New Member
Subscriber
Market risk practice questions when printed as PDF: The answer to 702.3 states that the answer is "D", although the associated value is answer "C"

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