Quant Round 1 2008 - question 11

[umachana]

Hi
In Quant Round 1 - question 11 , there were some abbreviations used like EAD, AE, PD and LGD. Are we expected to know these ?

Thanks

 

[David Harper CFA FRM]

hi umac,

I'll add full descriptions to the question. As a standalone query, it's not fair to omit (sorry), but still, yes, you should know these from Credit (Ong Ch 4, 5, and 6. But also de Servigny, Basel and elsewhere). Admittedly, out of order if you aren't at Credit yet, but I try for questions that connect across areas and do double duty.

Expected loss (EL) = AE*PD*LGD is central to Credit risk.

David

 

[umachana]

Thanks David. I just completed the quant section and was looking for some practice. So would you recommend going through the other sections before I start practice.
Also other than those 25 questions are there any more practice questions which I am unable to find for quant ?

 

[David Harper CFA FRM]

Hi umac,

I'd recommend the newsletter questions. Also the three sample tests (right column, top left, below study notes).

Regarding the flash quiz practices questions, many more will appear over time (all of the AIMs, in fact). As soon as the study notes are done, I will have more time to deploy them and they will appear more rapidly

Thanks, David