Question 4 Quant C

[fashepard]

David,

I am having a hard time working with the spread sheets. I am trying to work through how you get your nunbers and when it I open a t distribution table the e grid spread sheet is gone. I can not download it. You can't move back and forth What am I doing wrong? I am spending more time trying to figure this out than studying

 

[David Harper CFA FRM]

Hi Frank,

The Quant C - Q4 goes to this link:
http://www.editgrid.com/bt/frm_2008/Table11-7

You absolutely should be able to view the 2nd tab - EditGrid has 100,000 deployments under every conceivable browser. And, you should, if you like, be able to import into Excel (File > Export As).

But please note, in regard to this question Quant C - Q4, it's a compound question like you will rarely encounter. It is time-consuming and difficult as it picks up much (most?) of Gujarati's chapter on multivariate regression. This question I especially meant to be difficult...

David

 

[fashepard]

Thank you David,

I did download it and will work through it. It is a good guestion. It was helpful for me to print some of your slides also do I have the formulas to help


Thanks

 

[David Harper CFA FRM]

okay, great Frank. Thanks for the patience. Just to keep Quest 4 - Quant C in perspective:

1. it's way harder than you'd get on the exam (nobody could breeze thru this).
2. abstracting from the question to the content (multi-variate regression) this is about as hard as it gets vis a vis quant methods in the exam. It is one of maybe three quant "peaks," the other two (just IMO) are Hull's credit derivatives (CDS valuation, copula) and the opRisk distributions in LDA.

David