Wold's Theorem

[ps_ricky_son]

Hi all

There is a part on p.24 of Ch.7 Characterizing cycles which relates rational distributed lags to the Theorem.
It means that we should use the rational distributed lags to approximate the Wold's representation of infinitely distributed lag models.

- would like to know:
1. what does the term rational distributed lags mean?

2. what does the term infinitlely distributed lags mean?

3. how does the formula B(L) = R(L)/S(L) come out and its meaning?

Since it is a new topic to part 1 exam, is there a historically high chance to be tested?

Many thanks again and add oil to all

 

[Praveen_India]

Hi All,

I have a similar question too regarding these newly added topics, Diebold chapters, Copula and few others. Historically is there a pattern of testability of newly added topics.
How should we go about preparing for these topics etc.

Kindly share your experience.

Thanks,
Praveen

 

[Dr. Jayanthi Sankaran]

Hi Praveen,

Adding my two cents here - all I can decipher and say, is that Copulas and Ch 23 of Hull have Study Notes and PQ sets. The study notes of Ch 23 needs to be updated to include Volatility Term structures (in the AIM Statements)

Hope this helps, somewhat!
Thanks
Jayanthi

 

[ShaktiRathore]

Hi
Yes Wolds theorem is a newly included topic ,since its there in the frm curricillum it has chances of testability. What are chances high or low? Its somewhere b/w nobody can guess whether it will be tested or not it can be tested and cannit be but there are chances that it will be tested. Many topics which are now old and tested several times would have been newly included once and now are regular part of the exam. This newly included topics are testable with high chances and must be studied like any other important topics. Every topic included in the curricullum has equal importance and chances of testing.
These new topics should therefore be prepared like any other topic and should be given due time.
Thanks

 

[Praveen_India]

Ya true. Was just wondering if there is a history of GARP going bit easy on the newly added topics in the immediate exams.

Anyway it makes sense that we cant predict anything and there are equal chance of testability of these new topics as any other seasoned topic.

Thanks Shakti and Jayanthi for your time.

Praveen

 

[ps_ricky_son]

thx all for answering. So, better spend some time to digest those new concepts.

grateful if anyone can help on the questions. thanks.

1. what does the term rational distributed lags mean?

2. what does the term infinitlely distributed lags mean?

3. how does the formula B(L) = R(L)/S(L) come out and its meaning?