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mehak.officiallink

Sat Aug 23, 2014 7:47 pm

CFA level 1 : fixed Income : pg 407 of CFA text book

Why is using the spot rate better discount rate than Yield to Maturity in calculating the price of the bond ? "Spot rates are yield to maturity on zero coupon bonds maturing at the date of each cash flow" please explain ...

1

84

mehak.officiallink

Sat Aug 23, 2014 7:33 pm

CFA level 1 : Fixed income

Why is it that lower the coupon rate more is the percentage change in the value of the bond ? Why is that more the maturity period more is the percentage change in the value of the bond ? (Relationship between bond price and bond ...

1

81

anbu.edu

Thu Aug 21, 2014 8:49 am

FRM II-RM3

Which of the following best describes marginal risk for a portfolio? It is the: A) dollar change in portfolio VaR from an additional investment. B) per unit change in portfolio risk from an additional investment. C) dollar change ...

1

121

anbu.edu

Thu Aug 21, 2014 8:45 am

FRM II-RM3

Which of the following is the best interpretation of incremental VaR? A) It is the VaR for the first step into the tail beyond the VaR level. B) It is the VaR for liquidating a position in increments. C) It is the amount of risk a...

1

110

anbu.edu

Wed Aug 20, 2014 7:56 am

FRM II-CR 18

Securitization of trade receivables transfers which risk(s)? A) Credit risk. B) Market risk. C) Credit and market risk. D) Credit, market, and operational risk. The correct answer was A) Credit risk. By monetizing the asset, the ...

1

132

prernakhatri01

Sat Aug 16, 2014 5:20 am

Bangalore Level 1 - Dec 2014

Is there anyone preparing from Bangalore for December 2014, level 1 attempt and willing to do group study on weekend. Preferable area - Near Koramangala. Thanks

0

228

anbu.edu

Thu Aug 14, 2014 8:08 pm

FRM II-CR 11

With regard to lessening and calculating credit exposure, which of the following parameters is most likely referred to as the âinitial marginâ? A) Independent amount. B) Minimum transfer amount. C) Threshold amount. D) Roundin...

1

268

anbu.edu

Tue Aug 12, 2014 8:22 pm

FRM II-CR 7

Assuming a specific value for the market parameter, which of the following is an implication of the single-factor model for assessing the impact of varying default correlations based on a credit positionâs beta? A) If the market...

0

247

neha.kapoor318

Mon Aug 11, 2014 3:03 pm

Corporate Finance

An Investment has an outlay of 100 and after tax cash flows of 40 annually for four years.A project enhancement increases the outlay by 15 and the annual after cash flows by 5. As a result , the vertical intercept of the NPV profi...

1

275

neha.kapoor318

Mon Aug 11, 2014 6:20 am

Corporate finance

Wilson flannery is concerned that this project has multiple IRRs. Year 0 1 2 3 Cash Flows -50 ...

2

265

neha.kapoor318

Mon Aug 11, 2014 6:14 am

Corporate Finance

Consider the two projects below. The cash flows as well as the NPV and the IRR for the two projects are given. For both projects, the required rate of return is 10 %. Year 0 1 2 ...

1

269

neha.kapoor318

Mon Aug 11, 2014 6:04 am

Corporate Finance

An Investment has an outlay of 100 and after tax cash flows of 40 annually for four years.A project enhancement increases the outlay by 15 and the annual after cash flows by 5. As a result , the vertical intercept of the NPV profi...

3

294

neha.kapoor318

Mon Aug 11, 2014 5:24 am

Corporate Finance

Trumpit Resorts Company currently has 1.2 million common shares of stock outstanding and the stock has a beta of 2.2. It also has $10 million face value of bond that have five years remaining to maturity and 8% coupon with semi-an...

1

262

neha.kapoor318

Mon Aug 11, 2014 4:54 am

Corporate Finance

Dot com has determined that it could issue $1000face value bonds with an 8 percent coupon paid semi annually and a five year maturity at $900 per bond. If Dot com's marginal tax rate is 38%, it's after tax cost of debt is closest ...

1

260

anbu.edu

Sun Aug 10, 2014 6:28 am

FRM II-MR EDU practice q2

Which of the following factors are generally considered to affect the prepayment risk for the mortgage? I. Changes in interest rates II. Principal Outstanding Select one: a. I only b. II only c. Both d. Neither Can you please exp...

1

288

anbu.edu

Sun Aug 10, 2014 6:22 am

FRM II-MR EDU practice q1

Mortgage Based Securities were a hit because; Select one: a. Conventional financial instruments became risky investments b. They always offered higher rate of interest than conventional financial instruments c. They offered calcul...

0

310

Ryan

Wed Aug 06, 2014 7:40 am

Rules for working with Prime FMS

I invite you to cooperate: to assemble a team of traders to trade with a proven broker [url=http://www.edupristine.com:2ygqq1pc]Prime FMS[/url:2ygqq1pc] on spetsialnyeh conditions. Spend training to work on cross-cu...

0

309

anbu.edu

Tue Aug 05, 2014 3:40 pm

FRM II-MR 20

when the yield is higher than the coupon bond rate of MBS, the MBS behaves similar to corporate bonds as interest rate changes. Can you please explain this statement..

1

264

basanimaryprasanna

Mon Aug 04, 2014 10:00 am

what is CAGR in financial modeling

what is the meaning of CAGR in financial modeling.

1

291

anbu.edu

Mon Aug 04, 2014 7:36 am

FRM II-MR 15

Hi guys i have a doubt in chapter 15 overview of the MBS mkt In that i am unable to understand dollar roll market.. can anyone please explain

1

275

Anna

Sun Aug 03, 2014 5:36 am

Prime FMS review broker London

Become a partner leader - earn the team! Prime FSM progressive gang , which systematically provides for the development and success of its partners and customers .

0

360

anbu.edu

Fri Aug 01, 2014 2:46 pm

FRm2-MR 11

45.2 Assume that change to up-state (u) = + 20 bps and change to down-state (d) = -10 bps in a recombining binomial interest rate tree where p = 50%. The date 0 rate is 3.0%. What is the date 12, state 5 interest rate? a) 3.3% b) ...

0

298

abhishek.benjamin

Mon Jul 28, 2014 11:36 pm

Gamma Distribution: Parameter Determination !!

Hi !! Just wanted to ask one question with regards to Gamma Distribution topic in Business Analytics Course: Chapter 3 & Topic 9. For a Random Values X, representing Losses, we have chosen Alpha= 2 & Beta=3, shown as Ga (...

0

299

nripraj.2001

Thu Jul 24, 2014 7:01 am

Question on Skewness and Kurtosis calculations

A bond has a default probability of 5%. Which is nearest to the Skew(S) and Kurtosis(K) of the distribution? a) S=0.0, K=2.8 b) S=0.8, K=-7.5 c) S=4.1, K=18.1 d) S=18.9, K=4.2

1

360

nripraj.2001

Thu Jul 24, 2014 6:59 am

Coskewness and Cokurtosis

The GARP study material mentions about Non Trivial Cross Moments. What does this mean?

1

347

ashok.kothavle

Mon Jul 21, 2014 9:56 am

FRM - 1 : Kurtosis and Curve Shape for Leptokurtic , Mesokur

Hi Yesterday during the lecture we were informed that Leptokurtic has peak higher than the Mesokurtic (i.e. Normal distribution) curve and has fat tails while Platykurtic curve has peak smaller than Normal curve and has thinner ta...

2

421

anbu.edu

Sat Jun 28, 2014 10:24 am

FRM II-MR

With all other things being equal, a risk monitoring system that assumes constant volatility for equity returns will understate the implied volatility for which of the following positions by the largest amount: Select one: a. Shor...

1

392

alwaysenjoy.indu

Sat Jun 28, 2014 2:41 am

Fixed Income Analysis

Problem : Calculate the value of a bond, that would pay you $50 every year, starting from a year from now, for the next 3 years and would pay you a sum of $1000 at the end of 3 years. The appropriate discounting factor is 10% My ...

1

368

alwaysenjoy.indu

Fri Jun 27, 2014 6:40 pm

Fixed Income analysis

What is the term Basis Points or Margins are referred to in Floating Rate Bonds ? How do we get that ?

1

393

anbu.edu

Thu Jun 26, 2014 7:34 pm

FRM II-MR 4

84.3 Two bonds each have the same marginal (unconditional) probability of default (PD) equal to 2.0%. If they are independent, their joint PD is 0.04% which is the product of 2.0% multiplied by 2.0%. However, assume we employ a Ga...

0

411

alwaysenjoy.indu

Wed Jun 25, 2014 6:56 pm

Fixed Income analysis - Structure of Bond market

Before I proceed for further classes in Fixed Income Analysis program, I would like to understand the following â¢Basic structure of Bond and Who are the participants or players of the Bond market in real time scenarios? â¢As ...

1

395

anbu.edu

Mon Jun 16, 2014 7:12 pm

FRM 2- MR11

43.2 Assume a binomial interest rate tree with six steps. At the initial node (T0), the rate is 5.0%. The probability of an up-jump to the up-state is 60% (p = 0.6). The magnitude of an up-jump is +50 basis points; the magnitude o...

3

436

parasgrover91

Mon Jun 09, 2014 5:29 pm

FMCG Case study

In file "Q_Valuation_Case_v11" of FMCG case study, we have done relative valuation on "comps" sheet. But I don't understand why we have taken value of net debt as given for the year 2009 to calculate share pric...

1

374

neha.kapoor318

Sun Jun 08, 2014 3:42 am

Capital Budgeting (Corporate Finance)

Q2. An investment has an outlay of 100 and after tax cash flows of 40 annually for four years. A project enhancement increases the outlay by 15 and the annual after tax cash flow by 5 . As a result the vertical intercept of the NP...

1

390

neha.kapoor318

Sun Jun 08, 2014 3:20 am

Corporate Finance (Capital Budgeting)

I have doubts in few of the questions listed below request the faculty to please expalin the reasons for them. Q1. Erin Chou is reviewing a profitable investment project that has a conventional cash flow pattern if the cash flow ...

1

367

davidblumberg54

Thu May 29, 2014 12:37 am

Week 3 Financial Modeling cost build up

Paramdeep I assume by RM you are talking about finished goods. I have to go back and review but where are beginning / end of the period inventories considered? You appear to be only looking at sales of inventory. Historical R...

1

340

aniket.valsangkar

Wed May 28, 2014 3:03 pm

Derivatives and secondary market

1) How are long and short postions defined in call and put options....and why? 2)how currency swap can help prevent against financial turmoil for a country beset by liquidity crisis? 3)After the initial capital is raised by a comp...

1

321

aniket.valsangkar

Mon May 26, 2014 3:00 am

Macro Economics and Equity securities

1) What is the basic difference between primary and secondary market? Ca you give an example 2)if deficit financing increases the interest rates increases....but what s the logic behind this 3)can u elaborate on "ipo is only ...

1

246

devinarastogi84

Fri May 23, 2014 5:44 am

Bond duration

Ina question , Royal Bank has a par position in a 5 year, 0 coupon bond that has a Market value of 19059948. The modified dutaion will be? In the solution, for calculating YTM N=10 is used, y? while its a 0 coupon bond and then fo...

1

220

devinarastogi84

Fri May 23, 2014 5:31 am

Bond duration

what will be the formula for modified duration for 0 coupon bond? MD*= D/ (1+YTM) or MD*= D/(1+(YTM/2)) In a previous coming paper solution, for 0 coupon bond the formula used is D/(1+(YTM/2)). why its YTM/2 when bond is 0 coup...

1

204

devinarastogi84

Sat May 17, 2014 11:59 am

Forward contact

The current spot price for iron is $0.485/pound. The annual risk-free rate is 4.5% and the cost to store and insure iron is $0.008/pound/month. A 3 month forward contract for iron is trading at $0.524/pound. What will be the amoun...

1

204

devinarastogi84

Sat May 17, 2014 10:26 am

Short rate calculation

A firm XYZ is investing $10 million for 5-year term at 5.5%. Another firm PQR is investing $11 million for 2 years at the 2-year short rate, 4%, and then reinvesting the proceeds for 3 years at the short rate R%. If both the firms...

1

218

rinky63a

Fri May 16, 2014 3:39 pm

Netting agreement

(1) Company EFG is a large derivative market-maker that has many contracts with counterparty JKL, some transacted in the same legal jurisdiction and others across different legal jurisdictions. As a result, EFG has some contracts ...

1

187

aniket.valsangkar

Thu May 15, 2014 1:03 pm

Macro Economics and Equite securities

1) what is the link between deficit financing and increase in interest rates for a country 2)How to buy the shares of private company? Is an IPO the only way to buy shares for common public 3)what will happen to the coupen rate if...

2

232

rinky63a

Thu May 15, 2014 10:49 am

Credit exposure

(1) For a 10 year, $100 million notional amount, which one of the following swap position has the highest potential future credit exposure at the time specified ? (a) Currency swap 3 yrs after inception. (b) Currency swap 5 yrs a...

2

238

agrawal.caamit

Thu May 15, 2014 9:47 am

Var

Bank has a portfolio of derivatives on stock S as under: i .5000 deep out of money call options ii . 15000 deep in the money call options iii . 7000 forward contracts Which one of the following is closest to the correct estimation...

1

213

sushant.panda

Wed May 14, 2014 7:53 am

Query on historical simulation

Rational investment Inc. is estimating a daily VaR for its fixed income portfolio currently valued at USD 800 million. Using returns for the last 400 days (ordered in decreasing order, from highest daily return to lowest daily ret...

1

220

anirban.dutta

Mon May 12, 2014 8:15 am

Interest Rate Swap - Mock Test - II, Q#: 94

A bank had entered into a 3-year interest rate swap for a notional amount of USD 300 million, paying a fixed rate of 7.5% per year and receiving LIBOR annually. Just after the payment was made at the end of the first year, the con...

1

2407

anirban.dutta

Mon May 12, 2014 8:09 am

Forward Rate Agreement - Mock Test - II, Q#: 71

Suppose an FRA is of value (approx.) $7165 for the period between 3 to 6 months on a principal of $ 1mn. The spot rate for 6 month LIBOR is 5% and FRA pays 10% (quarterly compounding). Find out 3 month LIBOR spot rate. Options: A...

2

237

anirban.dutta

Mon May 12, 2014 8:05 am

Semi-Standard Deviation - Mock Test - II, Q#: 38

Sortino Ratio: 0.82 Beta: 1.15 Expected return: 12.2% Standard deviation: 16.4% Benchmark return: 11.9% Risk-free rate: 4.75% Calculate the semi-standard deviation of the portfolio. Options: A. 8.2% B. 14.2% C. 0.4% D. 13.38%

1

434

anirban.dutta

Mon May 12, 2014 8:02 am

Accrued Interest and Dirty Price - Mock Test-II, Q# 17.

Suppose that it is April 4, 2011 and there is a bond with 9% coupon maturing on July 20, 2015 with a quoted price of 90-16 or $90.50. The most recent coupon date is January 20, 2011, and the next coupon date is July 20, 2011. It i...

1

239

anirban.dutta

Mon May 12, 2014 6:42 am

Option Trading Strategies - Mock Test - II, Q#: 4.

The tock price of a US company is$42 and the call option on the stock having a strike price at $44 is trading at $3. The call expires in a year. A put option having the same exercise price and expiration date is priced at $25. Ass...

1

306

anirban.dutta

Mon May 12, 2014 4:11 am

Bond Price and Duration

A 5-year bond with a yield of 11% (continuously compounded) pays an 8% coupon at the end of each year. a) What is the bond's price? b) What is the bond's duration? c) Use the duration to calculate the effect on the bond's price of...

1

215

anirban.dutta

Mon May 12, 2014 4:00 am

Implied Forward Rates

Suppose that the 6-month, 12-month, 18-month, and 24-month zero rates are 5.0%, 6.0%, 6.5%, and 7.0%, respectively. What is the 2-year par yield?

1

185

sessiljoseph

Sun May 11, 2014 5:26 am

var topic from swescheser

you are the risk manager of a fund you are using the historical method to estimate Var.You find that the worst 10 daily returns for the fund over the period of last 100 trading days are-1%,-0.3%,-0.6%,-0.2%,-2.7%,-0.7%, -2.9%,-0.1...

1

183

sessiljoseph

Thu May 08, 2014 8:51 am

duration

A bond portfolio manager makes the following two statements: I. "We hedged our bond position (B), which has a duration of 6.5 years, with the hedge portfolio (H), which also has a duration of 6.5 years. Therefore, if interest...

1

164

sessiljoseph

Wed May 07, 2014 7:42 am

caplets

for a five year ATMcap on the 3 month LIBOR,what can be said about the individualcaplets in a downward sloping term structure enviornment a, the short maturity caplets are ITM, long maturity caplets are otm the short maturity capl...

1

152

sessiljoseph

Tue May 06, 2014 9:44 am

Forward rate agreement

consider the buyer of a 6*9 FRA.the contract rate is 6.35%on a notinal amount of 10million$.calculate the settlement amount of the seller if settlement rate is 6.85% assume a 30/360 days a. -12,500 -12,290 +12500 +12290 can u plea...

1

179

agrawal.caamit

Mon May 05, 2014 8:27 am

credit risk

Credit spread option has a notional amt of $50 mn wid a maturity of 1 yr. the underlying security is a 10 yr, semiannual bond with a 7% coupon and a $ 1000 FV. the current spread is 120 basis point against 10 yr treasury. the opt...

2

201

agrawal.caamit

Mon May 05, 2014 8:20 am

credit risk

As per Moody, the 5 yr cumulative probability default for AAA rated debt is 15%. If marginal probability of default for AAA debt from yr 5 to yr 6( Conditional on no prior default) is 10%, then what is the 6 YR cumulative probabi...

2

176

agrawal.caamit

Mon May 05, 2014 8:16 am

credit risk

A portfolio consist of two long asset £100 million each.probability of default over next yr is 10% for 1st asset, 20% for 2nd asset nd joint probability of default is 3% . Estimate d expected loss on dis portfolio due to credit d...

2

184

sessiljoseph

Fri May 02, 2014 12:49 pm

contangno and backwardation

Which of the following is TRUE about a normal/inverted futures market? a) A futures market is either normal or inverted but cannot be a mixture b) The roll return (roll yield) is profitable to a long futures position during an inv...

1

179

sessiljoseph

Fri May 02, 2014 10:18 am

duration and dvo1

True or false: For a zero-coupon bond, duration is a monotonically increasing function of maturity. True or false: For a zero-coupon bond, DV01 is a monotonically increasing function of maturity.

1

182

devinarastogi84

Thu May 01, 2014 8:22 pm

Futures

September futures contract on TCS closed at Rs. 2066 on August 16 and at Rs. 2062 on August 17, 2009. Ravi has a short position of 3000 in the September futures contract from August 16. On August 17, 2009, he sells 2000 units of 1...

1

195

devinarastogi84

Thu May 01, 2014 6:38 pm

Foreign Exchange

Currency Bid Offer CAD 1.5599 1.5604 JPY 117.50 117.60 Question: What if the customer wants to sell JPY for CAD?? Here It should be first Sell JPY for USD: USD/JPY= 1/117.60 then Sell USD for CAD: CAD/USD: 1.5569 So, CAD/JPY =...

4

195

sessiljoseph

Thu May 01, 2014 1:10 pm

bullet and barbell portfolio

If there is a SMALL parallel shift in the yield curve, how does their performance compare? a) Barbell outperforms bullet b) Bullet outperforms barbell c) Same or similar d) Need more information

1

181

sessiljoseph

Thu May 01, 2014 8:14 am

to find dv01

Assume a ZERO-COUPON bond with par value of $100 an yield (YTM) of 6%. . If the maturity is twenty years (20 years), find the DV01. how can u solve this problem my another doubt is will maculay duration of a zero coupon par bond...

1

194

devinarastogi84

Wed Apr 30, 2014 5:11 pm

Calculation of YTM by using PRM allowed calculator-TI -30XS

How do we calculate YTM by putting all other variables by using TI 30XS calculator, I cant see FV, PMT and N variables in this calculator. Please advice.

5

230

sessiljoseph

Wed Apr 30, 2014 11:10 am

widening of credit spread

Which of the following is most likely to cause an increase (i.e., widening) in a corporate bond credit spread? a) Economic expansion in the business cycle b) Increase in the bondâs liquidity c) Flight to quality d) Addition of e...

1

188

sessiljoseph

Wed Apr 30, 2014 11:08 am

interest rate parity

If currency futures are quoted in US dollars per unit of foreign currency, and if foreign exchange futures prices are increasing with maturity, what does interest rate parity (IRP) imply? a) US risk interest rates are greater than...

1

166

sessiljoseph

Wed Apr 30, 2014 11:06 am

Forward rate agreement

consider the buyer of a 6*9 FRA.the contract rate is 6.35%on a notinal amount of 10million$.calculate the settlement amount of the seller if settlement rate is 6.85% assume a 30/360 days a. -12,500 -12,290 +12500 +12290 can u plea...

1

166

sessiljoseph

Wed Apr 30, 2014 6:19 am

foundation of risk

for the past 4 yrs companyA has been outperforming company B the corporategovernance model of company a is well respected among investors at present company A is trying to take over company B the probability that company A would b...

1

179

sessiljoseph

Wed Apr 30, 2014 5:57 am

foundation of risk

relationship between cyclic nature and Bi,m for CAPM model a. Bi,m<0 implies that asset A and market returns are complementary b. Bi,m>1 implies that asset A and market returns are complementary c. Bi,m<1 implies that th...

1

143

devinarastogi84

Mon Apr 28, 2014 5:29 pm

option Pricing

Question: If the current USD/AUD rate is 0.6650 (1 AUD=0.6650USD) & the risk-free rates for the USD & AUD are 1.0% & 4.5% respectively, what is the lower bound of a 5-month European put option on the AUD with a strike ...

1

187

sessiljoseph

Mon Apr 28, 2014 7:19 am

risk adjusted discount rate

the risk free rate for an investment is 5.55 and the market risk premium is 6% the beta value for the asset is 1.8 which has a capital structure of 60% debt with a default spread of 8% calculate the certanity equilavents for 2yrs ...

3

204

sessiljoseph

Mon Apr 28, 2014 7:12 am

risk adjusted discount rate

a global investor decides to invest in india with arisk premium of 5% india seems to be the choice for this risk investor the investor picks up a firms asset for investment, the firm has a default spread of 1.6% and a t-bill rate ...

3

191

sessiljoseph

Mon Apr 28, 2014 7:00 am

caluculate present value

Firm a is supposed to grow at 5%,the dividened it paid earlier this year per share held was 1$.estimate the present value of one stock if it is till perpetuity, if required cost of capital is 10%

1

160

mehak.officiallink

Sat Apr 19, 2014 4:06 pm

cFA level 1 : probability

What is the difference between joint probablility and conditional probability ? In other words what is the difference between Stock earns a return above risk free GIVEN that stock earns a positive return (CONDITIONAL PROBABILIT...

1

185

saad.a15

Fri Apr 18, 2014 10:16 am

valuation

why we add debt to market value of equity to find enterprise value? How should we value a private firm which is not listed (since we cannot find Beta) using DFC valuation?

1

193

devinarastogi84

Fri Apr 18, 2014 4:42 am

Convexity

What is the percentage change in price of a bond if there is decrease of 50 bps in yield, and the modified duration of the bond is 8.5 with convexity of 350? What formula and logic will be used , Please explain in detial to solve...

2

181

mehak.officiallink

Sun Apr 06, 2014 8:11 am

Cfa level 1 derivatives

What does lower bound and upper bound means ? Does option value means the premium amount or the exercise price ? Why is the upper bound of put option equal to exercise price ?

1

212

kaushalya.narendran

Sat Apr 05, 2014 3:04 pm

FRM L-1 (VRM)

Please explain the concepts of: i) Pipeline Risk ii) Contingent Risk iii) Wrong-way Risk

1

215

mehak.officiallink

Tue Apr 01, 2014 4:00 am

Cfa level 1 derivatives

What is squaring off ? Can you please give an example for the same? And why is squaring off done ?

1

186

mehak.officiallink

Sun Mar 30, 2014 1:29 pm

cfa level 1 books- change in syllabus

will there be any differences in the cfa level 1 books for june attempt and for december attempt ?

2

269

mehak.officiallink

Sun Mar 30, 2014 1:26 pm

time to maturity affecting bond value

Why does bond value approaches par as the time to maturity comes nearer ?

1

203

mehak.officiallink

Sun Mar 30, 2014 1:26 pm

time to maturity affecting bond value

Why does bond value approaches par as the time to maturity comes nearer ?

1

209

shruti.madani

Fri Mar 28, 2014 12:09 pm

looking for study partner through Skype for cfa level1

Hi, I am looking for a study partner for cfa level 1 . Please let me know if anyone's interested. my mail id is <!-- e --><a href="mailto:shruti_madani@yahoo.co.uk">shruti_madani@yahoo.co.uk</a><!-- e --> Shruti

1

198

alkash.ghai

Wed Mar 26, 2014 1:04 pm

VAR Stress and Back Testing using Excel

Can anyone explain VAR , Stress and Back testing taking an practical example in an excel sheet. The calculation OF VAR and difference between each test with an example ?

1

452

alkash.ghai

Tue Mar 25, 2014 4:49 pm

Buys Side Vs Sell Side Functional Query

Could you please explain Buy side(Front Office, Middle Office and Back-office)operations and sell side operations taking an practical example? what is the major Difference between Buy Side Firms and Sell Side Firms? Does Buy Sides...

2

281

neerajmangal18

Sat Mar 15, 2014 7:23 pm

found some issue in recordings for CCRA

hi.. while i was going thru the recording session for CCRA in level 1 Financial Statements Analysis Session 4 in 9_IGAAP Vs IFRS Part 2 is not correct,the slide is not continued..please check it and upload it correctly..

1

208

thomas.dallagnese

Sat Mar 15, 2014 11:48 am

Var aX bY in PRM-I Portfolio Mathematics

PRM-I, Finance Theory ⺠Portfolio Mathematics at 22:00 in the example, written in the document: Var[4X-3Y] = 16*Var[X] + 9*Var[Y] + 2*4*(-3) * Var[X]^(1/2) * Var[Y]^(1/2) * correlation[X,Y] hand-written manually: Var[4X...

1

181

singhal.anuj

Tue Mar 11, 2014 11:46 am

Availability of Normal distribution table

In order to calculate option value using Black Sholes, we need to calculate normal distribution value of D1 and D2. (CHAPTER 8 - Basic Principles of Option Pricing ) I am using TI-30XS calculator for practice. I could not find any...

1

244

sanju928

Mon Mar 10, 2014 10:17 am

Equity--insurance companies?

I need to undeerstand this statement ' The insurance co. provides protection to a diversified pool of policy holders,whose risks of loss are typically uncorrelated. This provides more predictable losses and cash flows compared to ...

4

278

rinky63a

Sun Mar 09, 2014 11:35 am

Netting Agreement

Pls explain below calculation : (2) Company EFG is a large derivative market-maker that has many contracts with counterparty JKL, some transacted in the same legal jurisdiction and others across different legal jurisdictions. As...

2

222

rinky63a

Sun Mar 09, 2014 11:19 am

VAR

Pls explain below question : Which of the following is true for VaR models? Select one: a. Returns are assumed to be normally distributed b. Returns are assumed to be independent and identically distributed c. VaR usually underes...

2

199

mehak.officiallink

Sat Mar 08, 2014 7:08 am

exam preparation

i have to give cfa level1 in november. How many readings from schwezer is required ? And by when should my first reading be completed so that i get time for practising questions ? please help and do tell the hours required for fir...

2

196

mehak.officiallink

Sat Mar 08, 2014 7:06 am

exam preparation

i have to give cfa level1 in november. How many readings from schwezer is required ? And by when should my first reading be completed so that i get time for practising questions ? please help and do tell the hours required for fir...

3

211

mehak.officiallink

Sat Mar 08, 2014 7:00 am

net asset value

How is NAV calculated in mutual funds ?

1

190

anbu.edu

Thu Mar 06, 2014 12:01 pm

FRM part II- market Backtesting

60.1 Baselâs traffic-light market risk backtest (green/yellow/red zones) is a test of the NULL HYPOTHESIS that the bankâs internal 10-day 99% confident value at risk (VaR) model is accurate. Which of the following is most diff...

1

216

anbu.edu

Tue Mar 04, 2014 6:05 pm

FRM part II-market Drifts

303.1. Analyst Barry runs an short-term interest rate simulation using Tuckman's simple Model 1, which assumes no drift (zero drift) and is given by: The time step in his model is one month; i.e., dt = 1/12. His Model 1 also makes...

1

190

anbu.edu

Sun Mar 02, 2014 11:54 am

FRM part II-market Vol smile

In currency option the Volatility become less pronounced as maturity of the option increases- Why is that Can anyone explain Source GARP core reading

2

229

anbu.edu

Sun Mar 02, 2014 8:20 am

FRM part II-market exotic options

21.1. Each of the following is SIMILAR to a RAINBOW option EXCEPT for: a. Option with payoff = MAX[Asset #1, Asset #2, Asset #3] b. US Treasury bond futures contract c. Credit default swap (CDS) with multiple deliverable obligatio...

2

229

anbu.edu

Sun Mar 02, 2014 7:43 am

FRM part II

The probability of being Asset price above Strike price of a call option is N(d2)-Can anybody explain this please. I know I have read somewhere but I can quite recollect it

2

210

anbu.edu

Sun Mar 02, 2014 5:33 am

FRM 2 - Market Exotic options

Can anybody explain cliquet options with an example.

2

192

kishoreagarwal

Sat Mar 01, 2014 4:43 pm

CFA Level 2 Economics

The doubt is of economics regarding Interest rate parity(IRP). 1) why does IRP does not hold in short run? 2) why does uncovered IRP assumes that the investor is risk neutral? 3) In case of covered IRP , why does bank quote differ...

3

228

zeeshanrashid

Mon Feb 24, 2014 6:40 am

Q-bank part 2, ORM and ERM

Quiz 2:ORM Banks have to meet a number of qualitative criteria before they are permitted to use a models-based approach. The qualitative criteria include: Choose one answer. Select one: a. The bank should have an independent risk...

1

194

kaushalya.narendran

Tue Feb 18, 2014 8:44 am

Binomial Trees

(i) A 6 month American put option (ii) So= 50 (iii) X=52 (iv) Volatility=20% (v)The stock price has a 80% probability to go up each period and a 20% probability of going down each period (vi) Risk free rate=12% p.a. How do we ca...

2

269

sandipkumarshaw

Fri Feb 14, 2014 4:59 pm

quize-quants

Three traders, Amit, Balram and Chandok play a game of dice. Whoever throws a &quot;6&quot; first wins the game. Amit starts the game. What is the probability of Amit winning the game? Choose one answer. a. 36/91 Correct b. ...

1

212

anbu.edu

Sat Feb 08, 2014 2:43 am

FRM II

What do you mean by state dependent volatility? It was mentioned that non recombining BT Source form market risk measurement &amp; mang- Chapter 3 science of term st

2

237

sandipkumarshaw

Sun Feb 02, 2014 4:32 pm

quiz- probability and distribution

For a lognormal variable X, we know that ln(X) has a normal distribution with a mean of zero and a standard deviation of 0.5. What are the expected value and and the variance of X? Choose one answer. a. 1.025 and 0.187 Incorrec...

2

225

sandipkumarshaw

Sun Feb 02, 2014 2:35 pm

quiz- probability and distribution

The distribution of 1-year returns for a portfolio of securities is normally distributed with an expected value of 45 million, and a standard deviation of 16 million. What is the probability that the value of the portfolio, 1 year...

4

246

sandipkumarshaw

Sun Feb 02, 2014 2:05 pm

quiz- probability and distribution

An option trader is pricing a 1-year option. He is quoted an interest rate of 6% with semiannual compounding. In order to price the option correctly, he must convert this rate to a continuously compounded rate. Calculate the conti...

2

222

kaushalya.narendran

Thu Jan 30, 2014 1:31 pm

Financial Markets and Products

Sovereign ratings will be the ceiling for the ratings of an issuer within that country. So does that mean, if the Sovereign rating for a country is BBB, the corporate bond cannot be given a rating above BBB?

1

225

priyakamboj1985

Wed Jan 29, 2014 9:46 am

cfa- corporate finance

Q. if a 10 % increase in sales causes EPS to increase from $1.00 to $1.50 and if the firm uses no debt,then what is the degree of operating leverage ? please give the answer in detail because its confusing

2

277

kaushalya.narendran

Sat Jan 25, 2014 3:10 pm

Interest Rate Parity

Please explain the concept of Interest Rate Parity

2

192

kaushalya.narendran

Wed Jan 22, 2014 5:30 am

Covariance

Why is the covariance between the returns of a stock and a put option on the stock negative?

2

197

kaushalya.narendran

Sun Jan 12, 2014 12:54 pm

Foundations of Risk Management

'All assets with the same Beta should earn the same return'. So does that mean, irrespective of what the price of the asset is and irrespective of other factors, if two assets have the same beta, they earn the same return?

2

242

havinjain1988

Sat Jan 04, 2014 3:25 pm

Leverage Ratio and Deferred Tax Liability

Why is Leverage Ratio important and How does it help in evaluating the Defaulting Risk of the Firm ? ANd what do we mean by Deferred Tax Liability and Deferred Tax Asset ?

2

452

aaash.ag

Fri Jan 03, 2014 3:42 am

Clarity on Debt Service coverage ratio

Still have some confusion. So please clarify the following :- How to calculate NOI? What is considered to be NOI from the following? 1. EBITDA 2. EBIT or 3. EBIT (1-t) Total Debt Service :- Does it consider only interest payment...

2

231

aaash.ag

Thu Jan 02, 2014 3:41 am

Debt Service coverage ratio

Need clarity to calculate Debt service coverage ratio. Please explain Net Operating income and Total Debt Service with example.

2

204

aaash.ag

Sat Dec 28, 2013 3:38 am

coverage ratio

Please explain in detail about debt service coverage ratio and fixed charge coverage ratio with formula and example

1

182

monu.manish0

Thu Dec 26, 2013 11:01 am

CPA

somebody are taking class for CPA

2

189

aaash.ag

Mon Dec 23, 2013 3:52 am

Covenant

Need to know in detail about Covenant.What is Covenant and its significance?Also would like to know about two vital ratios -1.Debt Service Coverage and 2.Fixed Charge Coverage with formula and examples.

2

210

rinku.rohra85

Thu Dec 12, 2013 6:56 am

Hessian matrix

If Hessian matrix is negative definite, it indicates Local maxima or Local minima ?

2

205

vaheem27

Tue Dec 03, 2013 9:23 am

Pitch Book

If some one has a Investment Banking pitch book - Please share. I am particularly looking for ECM Pitch Book. If ECM pitch is not available, any IB pitch book is fine. Thank You

3

252

rinku.rohra85

Fri Nov 29, 2013 7:11 am

Eigenvalues

Pls help me to solve the following equation : What is the sum of the Eigen values of the matrix ? 7 -3 5 2 a) 8 b) 5 c) 9 d) 7 Answer: Option âcâ For any matrix A, Characteristics equation is given by, (A - λI) = 0 S...

2

214

rahuljagetiya

Thu Nov 28, 2013 5:34 am

Cost of equity

Hologram is a fast growing restaurant chain. Its company is growing 7% YoY and the company had last paid out a dividend of 5$. The share is currently trading for 52.35$ at NYSE. The company plans to raise further capital from the ...

2

225

rahuljagetiya

Thu Nov 28, 2013 4:47 am

Cash Flow

Quick InfoTech reports its financial statements as follows: Net Income: $53 million Increase in accounts receivable: $ 0.66 million Increase in accounts payable: $1.3 million Increase in inventory: $2 million Amortization: $4.3 mi...

1

222

rinku.rohra85

Wed Nov 27, 2013 3:33 pm

Eigenvector

Can anyone explain me how to calculate normalized eigenvector. Thanks

2

229

rahulgarg225

Sun Nov 24, 2013 5:05 am

Derivatives Quiz-1 Q5

A 90-day T-Bill Future is quoted price at 98. Calculate the delivery price Choose one answer. a. $98 b. $980,000 c. $995,000 answer was given choice c without any explanation .help me out plz

2

253

aaash.ag

Sat Nov 23, 2013 1:38 am

working capital intensity

asked in an interview by a rating agency. Formula to calculate working capital intensity

2

248

ashishsinha

Fri Nov 22, 2013 3:32 pm

Effect of increase or decrease in basis on a short and long hed

In sentence 2 para 3 page 47 of FMP book (Garp core reading) it says that if the basis strengths (i.e., increases) unexpectedly, the hedger's position improves(in a short hedge); if the basis weakens (i.e.,decreases) unexpectedly,...

1

295

vaheem27

Thu Nov 21, 2013 4:49 am

Pre Money and Post Money Valuation

I am looking for detailed Pre money and Post money valuation in excel as a part of a Equity model. If someone has this - Please share. Thanks

2

881

nisha

Wed Nov 20, 2013 10:10 am

FRM

I have completed FRM but i m not getting job from last 6 months so you guys said that you will assist me.

2

871

satyanarayana.m

Wed Nov 20, 2013 1:14 am

feedback on frm level 1 16 nov 2013

what could be the cut off for passing the exam?

2

405

malcolm100

Mon Nov 18, 2013 3:28 pm

FRM L1 2013 question

On maturity of the futures contract, the Exchange informs the short position holder: a. What grade to deliver b. How much quantity to deliver c. Where to deliver d. Who to deliver it to This was one of the questions in the recent...

1

300

aaash.ag

Sat Nov 09, 2013 1:26 am

working capital intensity

formula to calculate working capital intensity

1

220

monsieuruzairo3

Wed Nov 06, 2013 9:27 am

Options trading with profit discounting

A European-style call spread consists of a long position in the 105 strike call and a short position in the 115 strike call both maturing in 18 months. The options are on a stock index with an annualized dividend yield of 1% per a...

1

239

its.ruchi2006

Wed Nov 06, 2013 6:29 am

Foundation of risk management

A portfolio manager returns 10% with a volatility of 20%. The benchmark returns 8% with risk of 14%. The correlation between the two is 0.98. The risk-free rate is 3%. Which of the following statements is correct? Choose one answe...

1

204

anbu.edu

Wed Nov 06, 2013 1:46 am

VAR

A financial institution has agreed to pay 6-month LIBOR and receive 8% per annum (with semi-annual)compounding on a principal of $100 million. The swap has a remaining life of 1.25 years. The LIBOR rates withcontinuous compounding...

1

192

darshit.sr

Sat Nov 02, 2013 8:31 pm

Bond Duration

Following are the closing price (P) and yields(Y) of a particular liquid bond over the past few days: Monday: P= 106.3 Y= 4.25% Tuesday: P= 105.8 Y= 4.20% Wednesday: P= 106.1 Y= 4.23% What is the approximate duration of the ...

1

203

swarnendupathak

Sat Nov 02, 2013 7:51 pm

3 Tiered Securitization Structure

In the 3 tier securitization structure there would be Senior tranch, mezanine tranch &amp; equity tranch. Suppose there are enough cash-flow received (say A) from the underline security to pay off the interest to Senior (B) &amp;...

3

175

aaash.ag

Thu Oct 31, 2013 4:46 pm

working capital

what is working capital intensity?

2

185

swarnendupathak

Fri Oct 25, 2013 4:24 pm

Credit Linked Notes

Is my understanding CLN is correct? I have understood the following steps for creating CLN: 1. Investor A purchases Bond &amp; purchases CDS for protection from default risk. 2. CDS seller B sales CDS to Investor A &amp; gets regu...

2

183

gobind.jain

Fri Oct 25, 2013 10:55 am

Futures

âwhat is the difference between cash future price and quoted future price

2

191

swarnendupathak

Sun Oct 20, 2013 6:01 pm

Vasicek Model (Interest Rate Drift)

Can u please explain how to convert a non-recombining tree to a recombining tree under Vasicek Model??

4

327

kupilisashi

Sat Oct 19, 2013 6:34 am

Valuation Questions

What percent of total DCF value is usually in the Terminal Value? What proportion did the Terminal Value contribute to the Enterprise Value? Why? What concerns are there?

2

185

darshit.sr

Thu Oct 17, 2013 11:28 am

Quants- probability

Company ABC was incorporated on January 1, 2004. it has expected annual default rate of 10%. Assuming a constant quarterly default rate, what is the probability that company ABC will not have defaulted by April 1, 2004? a. 97.4%...

1

238

anbu.edu

Wed Oct 16, 2013 11:54 am

FMP-Options

If the current USD/AUD rate is 0.6650 (1 AUD=0.6650USD) and the risk-free rates for the USD and AUD are 1.0% and 4.5% respectively, what is the lower bound of a 5-month European put option on the AUD with a strike price of 0.6880?...

1

180

anbu.edu

Wed Oct 16, 2013 11:46 am

FMP-Options

An option portfolio exhibits high unfavorable sensitivity to increases in implied volatility and while experiencing significant daily losses with the passage of time. Which strategy would the trader most likely employ to hedge his...

1

194

anbu.edu

Wed Oct 16, 2013 5:43 am

foundation

While analyzing a portfolio an analyst found that the beta of the portfolio was high at 1.15. The portfolio had an expected return of 13.6% and had standard deviation of 16.4%. The portfolio was benchmarked against the Sensex whic...

1

177

anbu.edu

Wed Oct 16, 2013 5:40 am

foundation

Marks: 1 Assume that a portfolio underperformed its benchmark by 2% in the most recent month. In this scenario, Choose one answer. a. Alpha may be positive or negative depending upon Beta of the portfolio. Correct b. Alpha i...

1

164

anbu.edu

Wed Oct 16, 2013 5:39 am

Yeild curve

ello everyone I am a bit confused on Yield curve and effects on bonds(zero,par and coupon) Can anybody please explain ... or direct me which material to refer so that I can understand

1

177

anbu.edu

Tue Oct 15, 2013 1:31 pm

VAR

Does Increase in RF increase yield of the corporate bond?.. If so why?

2

157

anbu.edu

Tue Oct 15, 2013 1:30 pm

VAR

Marks: 1 Which of the following statements is/are true? I. The convexity of a 10-year zero-coupon bond is higher than the convexity of a 10-year, 6% bond. II. The convexity of a 10-year zero-coupon bond is higher than the convexit...

1

219

anbu.edu

Tue Oct 15, 2013 6:12 am

Quants

NEW Consider the following linear regression model: Y = a + b*X + e. Suppose a = 0.05, b = 1.2, Std(Y) = 0.26, Std(e) = 0.1, what is the correlation between X and Y? Choose one answer. a. 0.852 Incorrect b. 0.701 Incorrect...

1

183

anbu.edu

Tue Oct 15, 2013 5:41 am

Quants

16 Consider the following returns for the ABC Fund. Year 1: +22.7%; Year 2: +18.8%; Year 3: -2.3%; Year 4: +3.6%; and Year 5: -17.7%. If you held the fund for these 5 years, which number corresponds most closely to your annual hol...

1

174

neethur.ssai

Mon Oct 14, 2013 7:17 pm

concept of forward bucket 01

Please explain the concept with illustration

1

209

rinky63a

Mon Oct 14, 2013 12:33 pm

IRB approach

Which of the following statements is the least accurate about the foundation IRB and the advanced IRB approaches for credit risk capital charge in the Basel II? Select one: a. EAD, and correlation coefficient, within the risk-wei...

1

172

anbu.edu

Mon Oct 14, 2013 12:30 pm

QUANTS

A joint probability of A and B must always be: A) greater than or equal to the conditional probability of A given B. B) less than or equal to the conditional probability of A given B. C) greater than or equal to than the probabili...

1

143

anbu.edu

Mon Oct 14, 2013 5:48 am

VAR

Using both RiskMetrics and historical standard deviation, calculate the K-value that equates the most recent weight between the two models. Assume λ is 0.98. A) K = 50. B) K = 30. C) K = 51. D) K = 98. (1 â λ) λt = (1 â 0...

1

146

anbu.edu

Mon Oct 14, 2013 2:28 am

FMP

In analyzing the differences between the spot price of wheat and the price of a wheat futures contracts at a given time, what causes changes in the basis? A) Changes in cost of carry of the asset. B) Price volatility. C) Basis ri...

2

162

rinky63a

Fri Oct 11, 2013 8:07 am

Netting arrangement

Company EFG is a large derivative market-maker that has many contracts with counterparty JKL, some transacted in the same legal jurisdiction and others across different legal jurisdictions. As a result, EFG has some contracts with...

2

205

ashishsinha

Thu Oct 10, 2013 11:23 am

Calculation of Portfolio VaR by using VaR of the individual

What is the daily portfolio VaR at 97.5% confidence level? â¢Investment in asset A is Rs. 40 mn â¢Investment in asset B is Rs. 60 mn â¢Volatility of asset A is 5.5% and asset B is 4.25% â¢Portfolio VaR if correlation between A...

1

219

ashishsinha

Thu Oct 10, 2013 11:03 am

Can portfolio VaR be calculated if VaR of asset is given but

For an uncorrelated portfolio what is the VaR if: â¢VaR asset A is $10 mn â¢VaR asset B is $20 mn The answer has been given as $22.36 mn at one place and $ 11.18 mn at other place (in the other place they have assumed equa...

1

156

anbu.edu

Wed Oct 09, 2013 11:50 am

VAR

Delta-normal, historical simulation, and Monte Carlo are various methods available to compute VAR. If underlying returns are normally distributed, then Choose one answer. a. Delta-normal method VAR will be identical to the Monte...

1

171

anbu.edu

Wed Oct 09, 2013 11:38 am

VAR

8 Marks: 1 Consider a $1,000 par value bond with a 7% annual coupon. The bond pays interest annually. There are 2 years remaining until maturity. What is the current price of the bond?. Choose one answer. Choose one answer. a. $...

1

150

anbu.edu

Wed Oct 09, 2013 10:55 am

VAR

8 Marks: 1 Consider a $1,000 par value bond with a 7% annual coupon. The bond pays interest annually. There are 2 years remaining until maturity. What is the current price of the bond?. Choose one answer. Choose one answer. a. $...

1

158

anbu.edu

Wed Oct 09, 2013 10:55 am

VAR

8 Marks: 1 Consider a $1,000 par value bond with a 7% annual coupon. The bond pays interest annually. There are 2 years remaining until maturity. What is the current price of the bond?. Choose one answer. Choose one answer. a. $...

1

150

anbu.edu

Wed Oct 09, 2013 10:53 am

foundation

What assumptions does a duration-based hedging scheme make about the way in which interest rates move? I. A small parallel shift occurs in the yield curve. II.Interest rates movements are highly correlated. III. Any parallel shi...

0

150

anbu.edu

Wed Oct 09, 2013 2:40 am

foundation

You are hired as the credit risk manager for a large bank. You find that the bankâs credits are poorly diversified. The bank has an extremely large exposure to one firm with a BB rating. All its other loans have the equivalent o...

1

167

anbu.edu

Tue Oct 08, 2013 12:20 pm

foundation

An analyst has compiled the following information on a portfolio: Sortino Ratio: 0.82 Beta: 1.15 Expected return: 12.2% Standard deviation: 16.4% Benchmark return: 11.9% Risk-free rate: 4.75% Calculate the mean squared deviation o...

1

169

anbu.edu

Tue Oct 08, 2013 11:46 am

foundation

A bank cr officer, who has reviewed a loan application, has made the following statement:âOn a stand alone basis, I was not very keen on granting this loan however, I granted this loan after looking at the overall asset portfoli...

1

216

anbu.edu

Tue Oct 08, 2013 11:43 am

foundation

If the top management of a large firm finds that the overall risk of the firm's portfolios has changed, which of the following would NOT be a likely reason? Choose one answer. a. Many of the managers have unknowingly made very d...

0

145

anbu.edu

Tue Oct 08, 2013 5:28 am

foundation

Manoj says that Beta in CAPM has the following properties- I. Beta varies between +3 and -3 II.Any security with a zero beta is risk-free III.A negative beta might occur even when both the benchmark index and the stock under consi...

1

150

anbu.edu

Tue Oct 08, 2013 5:25 am

foundation

Last 4 years, the returns on a portfolio were 6%, 9%, 4%, &amp; 12%. The returns of the benchmark were 7%, 10%, 4%, &amp; 10%. The minimum acceptable return is 7%. What is the portfolio's Sortino ratio? Choose one answer. a. 0.4...

2

143

anbu.edu

Tue Oct 08, 2013 2:25 am

FMP-swap

Choose one answer. a. St1: Enter into a swap transaction in which the firm pays fixed and receives floating. b. St2: Enter into a swap transaction in which the firm receives fixed and pays floating. c. St3: Purchase an interest ra...

1

150

anbu.edu

Tue Oct 08, 2013 2:21 am

FMP-swap

Choose one answer. a. $1.927 million b. $2.245 million c. $2.624 million d. $3.011 million Bank One enters into a 5-year swap contract with Mervin Co. to pay LIBOR in return for a fixed 8% rate on a nominal principal of $100 milli...

1

155

anbu.edu

Tue Oct 08, 2013 1:46 am

FMP-Options

If risk is defined as a potential for unexpected loss, which factors contribute to the risk of a long put option position? Choose one answer. Choose one answer. a. Delta, vega, rho Correct b. Vega, rho Incorrect c. Delta...

0

150

anbu.edu

Tue Oct 08, 2013 1:42 am

FMP-Options

An option portfolio exhibits high unfavorable sensitivity to increases in implied volatility and while experiencing significant daily losses with the passage of time. Which strategy would the trader most likely employ to hedge his...

0

157

anbu.edu

Mon Oct 07, 2013 12:05 pm

FMP

A European-style call spread consists of a long position in the 105 strike call and a short position in the 115 strike call both maturing in 18 months. The options are on a stock index with an annualized dividend yield of 1% per a...

1

145

anbu.edu

Mon Oct 07, 2013 11:45 am

FMP

With all other things being equal, a risk monitoring system that assumes constant volatility for equity returns will understate the implied volatility for which of the following positions by the largest amount: Choose one answer. ...

1

161

anbu.edu

Mon Oct 07, 2013 6:59 am

FMP

A money market fund invests in Treasury bills. What is the principal risk that the fund manager must hedge for? a. Interest rate risk b. Default risk c. Funding liquidity risk d. Asset liquidity risk The answer is ...

4

153

anbu.edu

Mon Oct 07, 2013 6:28 am

FMP

A bronze producer will sell 1,000 mt (metric tons) of bronze in three months at the prevailing market price at that time. The standard deviation of the price of bronze over a three-month period is 2.6%. The company decides to use ...

1

151

anbu.edu

Mon Oct 07, 2013 2:13 am

FMP

What is reverse floater , does reverse floater exposed to an increase in interest rates?

1

135

anbu.edu

Sun Oct 06, 2013 11:29 pm

Quants

The current estimate of daily volatility is 1.5 percent. The closing price of an asset yesterday was $30.00. The closing price of the asset today is $30.50. Using the EWMA model with lembda = 0.94, the updated estimate of volatili...

1

153

anbu.edu

Sun Oct 06, 2013 11:14 pm

Quants

Which of the following statements regarding hypothesis testing is/are true? I.If the significance level is more than the p-value, the null hypothesis is rejected II.A decrease in the level of type I error causes a decrease in Type...

2

155

anbu.edu

Sun Oct 06, 2013 11:45 am

Quants

You are given the following information about the returns of stock P and stock Q: 1. Variance of return of stock P=100.0 2. Variance of return of stock Q=225.0 3. Covariance between the return of stock P and the return of stock Q=...

1

179

anbu.edu

Sun Oct 06, 2013 11:44 am

Quants

It has been observed that daily returns on spot positions of the euro against the U.S. dollar are highly correlated with returns on spot holdings of the Japanese yen against the dollar. This implies that Choose one answer. a. Wh...

1

165

anbu.edu

Sun Oct 06, 2013 8:02 am

Quants

Company ABC was incorporated on January 1, 2004. it has expected annual default rate of 10%. Assuming a constant quarterly default rate, what is the probability that company ABC will not have defaulted by April 1, 2004? Choose one...

1

157

anbu.edu

Sun Oct 06, 2013 7:51 am

Quants

or a lognormal variable X, we know that ln(X) has a normal distribution with a mean of zero and a standard deviation of 0.5. What are the expected value and and the variance of X? Choose one answer. a. 1.025 and 0.187 Incorrect...

1

148

anbu.edu

Sun Oct 06, 2013 7:37 am

QUANTS

You work for a bank that lends to lots of different companies. Your boss asks you to quantify the impact of diversifying credit risk across industries. Which statement is true? Choose one answer. a. The dollar standard deviation...

1

153

swarnendupathak

Wed Oct 02, 2013 11:57 am

Test 2 for Market Risk Management (FRM Part-II)

Hi, In Test 2 of Market Risk about 99% of the question are from Part 1 regarding pricing of option by using Put Call Parity, FRA, SWAP etc &amp; hardly one question from Volatility smiles. So is there is any chance of getting such...

1

209

anbu.edu

Tue Oct 01, 2013 1:15 am

VAR

Hello every one ... I Dont know how to answer thew last two questiosns... Can any one help.. A stock price follows geometric Brownian motion with an expected return of 16% per annum and a volatility of 35% per annum. The current ...

2

170

rinky63a

Sun Sep 29, 2013 7:24 am

Calculation of VAR

(1) The Westover Fund is a portfolio consisting of 42% fixed-income investments and 58% equity investments. The manager of the Westover Fund recently estimated that the annual VAR (5%), assuming a 250-day year, for the entire port...

1

170

rinky63a

Fri Sep 27, 2013 6:54 am

Capital Allocation - Marginal Economic Capital

How to calculate marginal EC in example mentioned in Capital allocation pdf. It is given : Marginal EC = 8100 / 101.73 How to calculate 8100 ?

2

312

rathod.rashmin

Tue Sep 24, 2013 9:53 am

Formulas for Variance and Covarince

Are the below formulas for Variance and Covariance true Ïxy=1/n*Æ©(X-µx)(Y-µy) =1/nÆ©XY â (µX*µY) Ï^2=1/n*Æ©(X-µ)^2=1/n*Æ©(X^2) - µ^2 Please advice on the last part of both formulas in perticular

1

189

anbu.edu

Tue Sep 17, 2013 1:28 am

Quants

Distributions like weibull,gamma,beta,logistic from quants are important for part 1 exam? If so were can i study that and what kinda questions will be asked

1

162

ashishsinha

Fri Sep 13, 2013 7:38 am

How to calculate the formula for Poisson Distribution in BA

The number of false fire alarms in a suburb of.Houston averages 2.1 per day.Find the probability that 4 false alarms will occur on a given day. Please tell me the steps in BA II Plus Professional calculator. I know the formula but...

2

289

ashishsinha

Thu Sep 12, 2013 9:28 am

How to calculate the formula for Poisson Distribution in BA

The number of false fire alarms in a suburb of.Houston averages 2.1 per day.Find the probability that 4 false alarms will occur on a given day.

1

175

anbu.edu

Wed Sep 11, 2013 7:33 am

FRM -VAR

Can anyone please explain this formula P=c/(1+f(1))+c/(1+f(1))*(1+f(2))+c/(1+f(1))*...(1+f(t)) why we are discounting second coupon with two periods rates i.e with f1 and f2 source :FRM core reading 2013 VAR:book 4 pg 158

1

169

ashishsinha

Sun Sep 08, 2013 4:24 pm

Pls refund my money

I am fed up with the way your faculty is taking classes. My questions are not being answered on the forum, not by email and not even in the classes. Today i requested Mr. Vivek (faculty) to make me understand how to calculate e^x ...

1

284

kapilanjan.npti

Sun Sep 08, 2013 7:50 am

VaR

In a two-position portfolio consisting of positions X and Y, it is found that the marginal VAR of X is greater than that of Y. Using this information, which of the following is most likely to be TRUE? Increasing the allocation to:...

1

167

anbu.edu

Sat Aug 31, 2013 1:46 pm

FRM- Realised Forward rates

A $100 par bond that pays a semi-annual coupon with coupon rate of 6.0% settles on 5/31/2013 and matures in 1.5 years on 11/30/2104. The price of the bond is $107.44 as the six month forward rates are 0.5%, 1.0%, and 1.5%, where e...

1

213

anbu.edu

Sat Aug 31, 2013 11:59 am

FRM-Spot rate

Spot rate(1.5)=[(1/Discount factor^(1/3))-1] Can anyone explain this formula concept. i want to know why is it ^(1/3) and not 3

1

161

ashishsinha

Wed Aug 21, 2013 2:09 pm

Raising number to the power of fraction

Company incorporated on January 1, 2004. Expected annual default rate 10%.Assuming constant quarterly default rate, the probability that it will not default by April 1, 2004. In this question the way suggested in the slide is to r...

1

204

ashishsinha

Wed Aug 21, 2013 2:03 pm

Probability of non-default

Company incorporated on January 1, 2004. Expected annual default rate 10%.Assuming constant quarterly default rate, the probability that it will not default by April 1, 2004.

1

189

ashishsinha

Tue Aug 20, 2013 9:17 am

Calculation of Webinar

Given two random variables x and y, what is the variance of x given variance(y)=100, variance (4x-3y)=2700, and the correlation between x and y is 0.5? In the Webinar it was solved till 2700= 16Variance X+900- 120Standard Deviati...

1

169

anbu.edu

Fri Aug 16, 2013 9:18 am

FMP-Options

Stock price 20, volatility=20%,RF=4%. Assume ATM options with one yr maturity. How to calculate initial cost and MAX potential loss of the straddle. Source Hull.10.05&amp;06

1

186

llti20

Tue Aug 13, 2013 7:34 am

VaR

Hi In Puting VaR to Work, there is a somewhat strange convention of calling the % delta &quot;delta&quot; and the delta that I am more familiar with &quot;dollar delta&quot; or &quot;$ delta&quot;. Is this convention used on the ...

1

187

llti20

Tue Aug 13, 2013 7:28 am

expected loss & unexpected loss

i was reading something about expected losses and unexpeted losses and would appreciate it if you clarify this for me. i read that expected losses are those anticipated reduction in value of loans advanced to borrowers by a bank o...

1

184

ashishsinha

Thu Aug 08, 2013 1:39 am

How to access the webinars which are over?

How to access the webinars which are over? In the Webinars once i click on any of the webinar i am interested in, it takes to me fill up a form by giving my first and last name, emailid and mobile number. When i submit it, i just ...

1

179

ashishsinha

Thu Aug 08, 2013 1:12 am

Posting of first free webinar on FRM part 1 on the Edu Prist

When will the first free webinar on FRM part 1 be posted on your website?

1

292

anbu.edu

Mon Jul 29, 2013 1:10 pm

FRM -Quants Hypothesis

79.1 Assume a bank conducts a four-year (1,000 days) backtest of their 99% value at risk (VaR) model. The backtest is conducted at a 95% level of test confidence, such that the model is accepted ("accurate VaR model") if the numbe...

2

227

kr.praharsh

Mon Jul 22, 2013 4:16 pm

Book Value vs Intrinsic Value

Hello Everyone. I am not able to understand that : What's the Difference Between the BOOK VALUE and the INTRINSIC VALUE of a SECURITY......??? Would Welcome any answer.

1

205

its.ruchi2006

Tue Jul 16, 2013 5:44 pm

FRM Part 1-Practice paper

Suppose that a quiz consists of 10 true-false questions. A student has not studied for the exam and just randomly guesses the ans. What is the probability that the student will get atleast 3 questions correct? (a) 54.7% (b) 33.66...

3

288

its.ruchi2006

Tue Jul 16, 2013 5:40 pm

Quant-I

A credit risk manager of Esta bank is reviewing the credit risk of EUR 400000 loan to Kidco, which is a subsidiary of Pattern Inc. Assume that Kidco will default if Pattern Inc default but Pattern will not necessarily default if K...

1

211

ramki.mib

Fri Jul 12, 2013 12:07 am

What's CFA Planner?

can any one tell me what's CFA Planner. How it would be helpful to prepae the exams

1

211

ramki.mib

Fri Jul 12, 2013 12:06 am

How to start preparation for CFA Level 1 Dec 2013?

I am very confused of when, where to start the syllabus.

2

315

sadate1982

Tue Jul 09, 2013 3:34 am

Syllabus December 2013

Is the syllabus for December 2013 different to June 2013 CFA 1

2

198

User avatar

rahulthp

Wed Jul 03, 2013 9:01 am

First Mock Test Tentative Date

When will the first mock test be held tentatively? I want to know this so that I can at least touch upon all the subjects before that.

1

336

ashishsinha

Mon Jul 01, 2013 5:53 pm

Blank PDF Files

The following PDF files are not being opened : 1) FMP I, II, III &amp; IV 2) VAR I &amp; II 3)Quantitative Analysis I,II &amp; III, 4) Foundation of Risk Management 5) New Readings Foundation of Risk Management When i open these ...

1

274

ashishsinha

Mon Jul 01, 2013 5:49 pm

PDF FILES NOT OPENING

The following PDF files are not being opened : 1) FMP I, II, III &amp; IV 2) VAR I &amp; II 3)Quantitative Analysis I,II &amp; III, 4) Foundation of Risk Management 5) New Readings Foundation of Risk Management

1

193

puneet

Fri Jun 28, 2013 10:04 am

Career Opportunity as Analyst Structuring in Chennai

Job Title: Analyst Structuring Location: Chennai Key Responsibilities: ⢠Perform credit analysis ⢠Prepare and structure debt investment proposals ⢠Assist in structuring transactions ⢠Prepare investment theses, credit...

0

284

puneet

Mon Jun 24, 2013 8:01 am

Career Opportunity as Analyst with Leading KPO in Pune

Job Title: Analyst Firm: A Leading KPO Location: Pune Job description: ⢠Build end-to-end linked financial models from scratch or customize it based on the provided template. ⢠Increase the efficiency of the model by approp...

0

570

cometosujay

Mon Jun 17, 2013 4:15 am

Files are not playing

I've downloaded the Var I,Var II,however the files are not playing.Please assist.I've to study.

1

204

llti20

Thu Jun 13, 2013 8:40 am

new topics for FRM 1

hi i have purchased your FRM 1 pro. after reviewing the notes i realised that there are no notes on the new topics. for example, i couldnt find any note on model risk , coskewness and cokurtosis. Nothing about key rates, informat...

1

792

mainakbhowmik

Wed May 29, 2013 6:39 pm

Query regarding question on slide#28 of Quantitative Analysi

The question ask the probability of selecting a bond, but doesn't the answer give the probability of selecting a stock?

0

128

vishesh.2009

Fri May 24, 2013 6:42 pm

Total Pension expense

Could someone assist in explaining the difference in calculation for Concept checker #3 and #5 in the 2013 Scheweser study session #6 on pages 119 and 120. The questions are both asking for total pension expense and make no disce...

0

207

darshit.sr

Fri May 17, 2013 5:58 pm

FMP 3rd recording not working

while i was going through 3rd video on FMP for FRM part 1, i experienced many problems to follow it as the topic on which speaker is speaking is completely different than what is there on screen. so kindly help me out for the same...

0

233

andrea.allegra

Wed May 15, 2013 12:22 pm

Mock Exam Questions

Many questions in the mock exams have missing parts in the questions. in this way it is impossible to answer those questions. I tried different browser but the problem persist. Could you please fix it?

0

260

kamleshk

Mon May 13, 2013 9:06 pm

Answer key to the revision questions

Can you please provide us the answer key to the revision questions? Currently, the answers are provided only to the FMP revision questions?

0

223

shah.vishal

Sun May 12, 2013 10:00 pm

frm level test 1

Consider two stocks A and B. Assume their annual returns are jointly normally distributed, the marginal distribution of each stock has mean 2% and standard deviation 10%, and the correlation is 0.9. What is the expected annual ret...

1

255

shah.vishal

Sun May 12, 2013 9:40 pm

frm level 1 test question

The joint probability distribution of random variables X and Y is given by f(x,y) = kxy for x = 1, 2, 3, y = 1, 2, 3, and k is a positive constant. What is the probability that X + Y will exceed 5? Please explain

1

293

shah.vishal

Sun May 12, 2013 9:36 pm

frm level test question

A bond trader has bought a position in Treasury Bonds with a 4% annual coupon rate on February 15, 2015. The DV01 of the position is USD 80,000. The trader decides to hedge his interest rate risk with the 4.5% coupon rate Treasury...

1

260

shah.vishal

Sun May 12, 2013 9:35 pm

frm level 1

A portfolio manager has a bond position worth USD 100 million. The position has a modified duration of 8 years and a convexity of 150 years. Assume that the term structure is flat. By how much does the value of the position change...

1

294

shah.vishal

Sun May 12, 2013 9:33 pm

frm level i urgent

The price of a 3?year zero coupon government bond is 85.16. The price of a similar 40year bond is 79.81. What is the one-year implied forward rate from year 3 to year 4? Please help for solution with step and concept

1

346

vishesh.2009

Fri May 10, 2013 8:31 am

CFA L2 Recordings- Fixed Income Securities II

There is one topic missing in the fixed income lecture II - VALUING MORTGAGE BACKED AND ASSET BACKED SECURITIES. . The lecturer was not able to complete all the topics on time. So, can you please provide me a recording of fixed in...

0

278

peeyushbhatti

Sun May 05, 2013 1:28 am

Derivatives recorded lectures - CFA LEVEL II

Hi, The links on the courseware do not point to the lecture for derivatives 1 and 2. Please resolve the issue.

0

338

vishesh.2009

Sat May 04, 2013 4:46 pm

CFA L2- FRA Recordings

The L2 recordings for Financial Analysis and Reporting are not audible (Class number 3). There is some problem with the mike in the class. Please upload a new class for the same as soon as possible as the exam date is approaching ...

0

255

anbu.edu

Sat May 04, 2013 2:36 pm

FRM Level 1- Exam Querry

How to approach the Exam- Any Strategies for completing the exam within the time. And also is there anything like Documents for the Exam . If so were can i find it.

1

322

aswink

Fri May 03, 2013 12:10 pm

Basel ii documents on - Scenario Analysis for Operational Ri

Could I get any Basel ii consultative documents on scenario analysis for operational risk?

0

305

vishnu.ftw

Fri May 03, 2013 8:08 am

CFA L1 Economics Quiz 2

Any payment to a factor of production consists of factor opportunity cost and economic rent. In the light of this statement, which of the following is most likely to be false? Choose one answer. a. For a perfectly elastic supply...

2

349

nikunjnagar

Thu May 02, 2013 4:22 pm

FRM May 2013 Part 1 Exam

Hi, I have a very quick question. Will we have questions in the exam on the section basis. I mean 100 questions divided under sections as below: 1. Foundations - 20 questions 2. Quant - 20 questions 3. Products - 30 questions 4. V...

1

392

vishesh.2009

Wed May 01, 2013 4:35 pm

CFA L2- FRA Recordings

The recordings for FRA have not been updated since april, 2012. Can we assume that there has not been any changes in the syllabus from last year?

0

212

vishnu.ftw

Tue Apr 30, 2013 7:26 pm

CFA L1 Quants quiz 4

A normal distribution has a mean of 39 and a variance of 625. The area under the distribution between 50 and 75 equals ________. Choose one answer. a. 0.745 b. 0.319 c. 0.255 The correct answer is 0.255. First note...

1

236

vishnu.ftw

Tue Apr 30, 2013 2:28 pm

Question about CFA L1 Ethics

Considering it is the topic with most weightage, and has a lot more material than the other books, why is there only one class for this section? Do you recommend I study from the CFA textbook or somewhere else, or is all the infor...

4

478

paresh.patel

Sun Apr 28, 2013 5:11 pm

Recording

The recording of VAR-I is twice and not upadated, it shown oct-2012 date.

0

192

anbu.edu

Sat Apr 27, 2013 10:29 pm

FRM-VAR

Which of the following statements regarding the structured Monte Carlo approach is CORRECT? The general equation assumes the underlying asset has normally distributed returns with a mean of μ and a standard deviation of Ï. The ...

1

256

anbu.edu

Sat Apr 27, 2013 3:51 pm

FRM-Revision Calsses Querry

Hello, The PDF i found on FRM revision classes contain only questions . Were can i find answers for those questions . As you know all the questions are not discussed in class due to lack of time . The questions with answers would ...

0

227

anbu.edu

Fri Apr 26, 2013 4:13 pm

FRM-FMP

Which of the following statements regarding duration is FALSE? A) Duration is a measure of percentage change in price for a given change in yield. B) Duration of a portfolio of bonds is equal to the market value weighted average ...

1

218

anbu.edu

Fri Apr 26, 2013 3:46 pm

FRM-FMP

or a 20-year, $1,000 par value, 6 percent coupon T-bond yielding 5 percent, the dollar value of a basis point (DV01) and associated percentage price change (PPC) are closest to: A) $0.14 and 0.01%. B) $0.57 and 0.06%. C) $2.45 an...

1

211

nikunjnagar

Thu Apr 25, 2013 7:42 pm

VaR Rivision Pack Answers

Hi, Can we get answers for the VaR Revision pack?

1

192

kamleshk

Thu Apr 25, 2013 7:57 am

Answer key to the revision questions

Where can I get the answer key to the revision questions for FMP and other topics?

1

332

anbu.edu

Wed Apr 24, 2013 4:05 pm

FRM-FMP

Estimated price changes using only duration tend to: A) overestimate the increase in price that occurs with a decrease in yield for large changes in yield. B) underestimate the decrease in price that occurs with an increase in yie...

2

229

anbu.edu

Tue Apr 23, 2013 12:01 am

FRM-FMP

How will the value of a portfolio of non-callable corporate bonds hedged with Treasury futures change if the yield curve shifts up in a parallel manner by an anticipated amount? The value of the newly hedged portfolio: A) may inc...

1

269

anbu.edu

Mon Apr 22, 2013 3:49 pm

FRM-FMP

Which of the following statements regarding a futures trade of a deliverable contract is FALSE? A) The long is obligated to purchase the asset. B) Equilibrium futures price is known only at the end of the trading day. C) The shor...

2

278

sps.singh32

Mon Apr 22, 2013 1:39 pm

recordings

where i can find fra v recording as it shows only 4

0

231

vishnu.ftw

Sat Apr 20, 2013 11:18 am

CFA L1- Equity Quiz 2 questions

Question 10: Could someone explain why option a is correct and not option b? Question 15: Could you explain step-by-step how to work this problem? Why is the answer the marginal net tax effect of additional debt? Question 19: Ho...

2

311

vishesh.2009

Fri Apr 19, 2013 6:16 pm

CFA L2 Videos- Portfolio Mgmt-1

Can ypu please upload a different video for Portfolio Management. The problem in the current video is that some part of it is cut and due to that at least 10 slides are missed. This happens when video is at 2:52:00. Please look in...

0

255

anbu.edu

Thu Apr 18, 2013 11:50 pm

FRM-Regression analysis

A dependent variable is regressed against three independent variables across 25 observations. The regression sum of squares is 119.25, and the total sum of squares is 294.45. The following are the estimated coefficient values and ...

1

211

anbu.edu

Thu Apr 18, 2013 11:21 pm

FRM-Regression analysis

Seventy-two monthly stock returns for a fund between 1997 and 2002 are regressed against the market return, measured by the Wilshire 5000, and two dummy variables. The fund changed managers on January 2, 2000. Dummy variable one i...

0

213

kvastav

Thu Apr 18, 2013 9:30 pm

PRM 1 Preparation

friend's cna any one please suggest how can prepare well for PRM exam better, as i have completed my entire set of material preparation once. please suggest more tip's prepare much better, and how to practice the problems, from wh...

0

194

vishnu.ftw

Thu Apr 18, 2013 6:10 pm

Equity Quiz 1

Question 16)Which of the following statement is least accurate for a Top Down equity analysis Approach? Choose one answer. a. Most valuation models, after top down analysis, recommends the required returns on equity, rather than...

1

224

anbu.edu

Thu Apr 18, 2013 5:10 pm

FRM-Regression analysis

Properties of regression-It specifies that the dependent variable is a linear function of the parameters,but does not require that there is linearity in the variables .- Can anybody please explain the second part- i find it diffic...

1

250

pradeeppdy

Thu Apr 18, 2013 11:43 am

corporate finance

Question-&quot;Consider the two projects below. The cash flows as well as the NPV and IRR for the two projects are given. For both projects, the required rate of return is 10 percent. Year Project 1 Project 2 Cash Flows ...

3

267

pradeeppdy

Tue Apr 16, 2013 10:00 am

derivatives

Please explain how the combination of the long interest rate call option plus a short interest rate put option has a same pay off as a forward rate agreement ?

3

250

vishnu.ftw

Mon Apr 15, 2013 4:56 pm

CFA Level 1-FSA Test VI Questions

Could someone explain how to go about solving questions 5 and 18? Thanks

2

272

vishnu.ftw

Mon Apr 15, 2013 2:21 pm

CFA Level 1-FSA Test III Question 1

Accounting rules differentiate research and development activities from activities not considered research and development. Which one of the following is not considered a research and development activity? Choose one answer. a. ...

2

502

anbu.edu

Tue Apr 09, 2013 4:27 pm

FRM-Foundation

Which of the following statements regarding the covariance of rates of return is least accurate? A) It is a measure of the degree to which two variables move together over time. B) If the covariance is not positive, the rates of ...

1

278

ameyakukde

Tue Apr 09, 2013 1:05 am

Futures Mkt PRM

Which of the following statements is correct? Choose one answer. a. For hedging the short position in the underlying, appropriate position in the futures contract is long position b. For hedging the long position in the und...

1

391

ameyakukde

Tue Apr 09, 2013 12:58 am

Fx PRM

Consider the following Fx rates: What is the 3 months CHF/ZAR outright forward price? <!-- m --><a class="postlink" href="http://www.edupristine.com/infrastructure/file.php/53/03000001_51.png">http://www.edupristine.com/infrast...

0

225

ameyakukde

Tue Apr 09, 2013 12:54 am

Fx PRM

If USD/ZAR is quoted at 4.8920/30 and USD/JPY as 123.74/84, what is the rate at which you can buy JPY against ZAR? The rate at which JPY can be bought against ZAR is the bid rate for ZAR/JPY. Bid rate for this will be given by Bi...

0

226

ameyakukde

Tue Apr 09, 2013 12:50 am

Forex PRM

Spot GBP/USD is trading at 1.8500/10. The tom/next rate is quoted 10/5. How should I quote for value tomorrow? How to solve?

0

203

ameyakukde

Tue Apr 09, 2013 12:39 am

Money Mkts

A Treasury bill selling for $97,569 with 100 days to maturity and a face value of $100,000 should be quoted on a bank discount basis at: Since T-Bills are quoted on an actual/365 basis, I believe one should use 365/100 for calcul...

0

285

ameyakukde

Sun Apr 07, 2013 12:37 am

GreeksDelta:

Suppose current price of the stock is $20. What is the delta of the call option on the stock with strike price $20 if the price of the stock moves up to $22 with probability 60% and moves down to $18 with probability 40%? How to ...

1

226

ameyakukde

Sun Apr 07, 2013 12:36 am

Binomial Model

Suppose risk-free rate of interest is 5%, volatility of the stock price is 35% and each step of the binomial model is 0.1 years, what is the probability of up-movement at each step of the binomial model?

1

198

ameyakukde

Sun Apr 07, 2013 12:35 am

BSM

if the no.of days to maturity in a Black Scholes Model question are given as, say, 41. Then what should be the denominator? 365 or 250 i.e. calender days or trading days to calculate the price of the option?

1

205

ameyakukde

Sun Apr 07, 2013 12:34 am

Pricing

Suppose strike price of the call option is Rs. 90 and current price is 90. A one-step binomial model is built to price the option. Suppose the price of the stock moves up to 94.5 with probability 0.6 and moves down to 85.71 with p...

1

260

ameyakukde

Fri Apr 05, 2013 6:56 pm

PRM Axioms

The axiom of independence of choice states that &quot;Our preference order between two lotteries should not be affected if these lotteries are part of the same wider range of possibilities&quot; The question asked in Quiz 2 on Ris...

0

228

anbu.edu

Thu Apr 04, 2013 11:50 pm

FRM-VAR

Which of the following describes the form of stress testing referred to as factor push analysis? A) The effect on the portfolio from simultaneous changes in several factors is examined. B) The risk factors that have the greatest ...

0

224

shah.vishal

Thu Apr 04, 2013 3:29 pm

FMP Part I recording

hi can you please provide me the FMP part I recording by Mr. samir.

1

207

anbu.edu

Thu Apr 04, 2013 3:03 pm

FRM-VAR

A risk manager simulates the Worst Case Scenario (WCS) data in the following table using 10,000 random vectors for time horizons, H, of 50 and 100. Time Horizon = H H = 50 H = 100 Expected number of Z &lt; -2.33 1...

1

288

vishnu.ftw

Thu Apr 04, 2013 1:01 pm

Explain Quants-III Slide 16

It is mentioned that the formulas are for calculating confidence intervals for population mean, but why should we construct a confidence interval for the pop mean when it is already known? (See heading of slide). Also what is the ...

1

214

anbu.edu

Thu Apr 04, 2013 12:40 am

FRM-VAR

An insurance company currently has a security portfolio with a market value of $243 million. The daily returns on the companyâs portfolio are normally distributed with a standard deviation of 1.4%. Using the table below, determi...

1

231

anbu.edu

Wed Apr 03, 2013 11:51 pm

FRM-VAR

Which value at risk methodology is most subject to model risk? A) Parametric. B) Variance/covariance. C) Monte Carlo simulation. D) Historical. View Answer Monte Carlo simulation is subject to model risk. Source: schweser My dou...

1

224

anbu.edu

Wed Apr 03, 2013 11:42 pm

FRM-VAR

Annual volatility: Ï = 20.0% Annual risk-free rate = 6.0% Exercise price (X) = 24 Time to maturity = 3 months Stock price, S $21.00 $22.00 $23.00 $24.00 $24.75 $25.00 Value of call, C $0.13 $0.32 $0.64 $1.14 $1.62...

1

232

anbu.edu

Wed Apr 03, 2013 11:24 pm

FRM-VAR

fat-tail distributions is most likely results from time-varying volatility for the unconditional distribution- I don't understand this concept, can you please explain this line

1

247

vishnu.ftw

Wed Apr 03, 2013 5:05 pm

General question regarding exam prep

Are there topics not covered in any of the slides? what do you recommend I study, in addition to reading the slides? I ask this because there were a few questions posted in the slides at the end of each chapter, which dealt with t...

3

227

vishnu.ftw

Wed Apr 03, 2013 5:03 pm

Quants-II, Slide 61, Which normal distribution has higher de

Shouldn't it be standard dev of A, the distribution with a lower peak, has lower standard dev than B?

0

88

anbu.edu

Mon Apr 01, 2013 11:07 pm

FRM-FMP

Which of the following is TRUE in normal backwardation? Futures prices tend to: A) fall over the life of the contract because hedgers are net short and have to receive compensation for bearing risk. B) rise over the life of the c...

1

295

jumpit

Mon Apr 01, 2013 4:31 am

T-Test and Confidence interval from online quiz

Based on the results in Exhibit 1, the 95 percent confidence interval for the sensitivity of banking equity index returns to NSE 50 is closest to: Choose one answer. a. 0.21 to 0.47. b. 0.26 to 0.47. c. 0.27 to 0.46. ...

1

309

akashbachhawat

Fri Mar 29, 2013 11:45 am

Quants 3 ( Hypothetical testing)

While dealing with a two-tailed test,given the sample mean and the sampling distribution ,the logic should be to see if the hypothesized mean is inside the confidence interval assuming the sample mean as the best estimate of the p...

1

267

anbu.edu

Fri Mar 29, 2013 1:10 am

FRM-FMP

In analyzing the differences between the spot price of wheat and the price of a wheat futures contracts at a given time, what causes changes in the basis? A) Changes in cost of carry of the asset. B) Price volatility. C) Basis ri...

2

266

anbu.edu

Thu Mar 28, 2013 2:00 am

FRM-FMP

Jon Crandell, FRM is a fixed income portfolio manager, and he wishes to create a T-bond futures hedge to alter his portfolioâs duration. What should he do if he wishes to shorten the duration of his portfolio with minimal disrup...

1

211

anbu.edu

Thu Mar 28, 2013 1:48 am

FRM-FMP

Austin Traynor is considering buying a $1,000 face value, semi-annual coupon bond with a quoted price of 104.75 and accrued interest since the last coupon of $33.50. If Traynor pays the dirty price, how much will the seller receiv...

1

259

anbu.edu

Thu Mar 28, 2013 1:34 am

FRM-FMP

Which of the following statements regarding accrued interest is most accurate? A) The bond is trading flat if the bond issuer is in default and the bond is trading without accrued interest. B) The accrued interest is paid by the ...

1

212

anbu.edu

Wed Mar 27, 2013 12:58 am

FRM-FMP

If 1-year rates are 5 percent, 1-year rates one year from now are expected to be 5.75 percent, and 1-year rates two years from now are expected to be 6.25 percent, then the unbiased expectations theory of interest rates would indi...

1

215

anbu.edu

Tue Mar 26, 2013 5:51 pm

FRM-FMP

Which of the following is TRUE concerning basis risk? In a hedge using futures contracts: A) basis risk of the hedged security is replaced with price risk. B) price risk of the hedged security is replaced with basis risk. C) basi...

1

245

anbu.edu

Mon Mar 25, 2013 12:48 am

FRM-regression Analysis

Consider the following analysis of variance (ANOVA) table: Source Sum of squares Degrees of freedom Mean square Regression 20 1 20 Error 80 40 2 Total 100 41 The F-statistic for the test of the fit of the model is cl...

1

259

anbu.edu

Mon Mar 25, 2013 12:39 am

FRM-regression Analysis

dependent variable is regressed against three independent variables across 25 observations. The regression sum of squares is 119.25, and the total sum of squares is 294.45. The following are the estimated coefficient values and st...

1

169

anbu.edu

Sun Mar 24, 2013 2:36 pm

FRM-Regression

63 monthly stock returns for a fund between 1997 and 2002 are regressed against the market return, measured by the Wilshire 5000, and two dummy variables. The fund changed managers on January 2, 2000. Dummy variable one is equal t...

0

205

anbu.edu

Sun Mar 24, 2013 2:01 pm

FRM-regression Analysis

Which of the following statements regarding multicollinearity is FALSE? A) Multicollinearity may be present in any regression model. B) Multicollinearity may be a problem even if the multicollinearity is not perfect. C) Multicoll...

1

206

anbu.edu

Sun Mar 24, 2013 1:59 pm

FRM-regression Analysis

A variable is regressed against three other variables, x, y, and z. Which of the following would NOT be an indication of multicollinearity? X is closely related to: A) 3y + 2z. B) 3. C) y2. D) 9y, and x is closely related to 4z. ...

1

192

deepakkrkanodia

Sat Mar 23, 2013 8:38 pm

PLEASE ANSWER MY FRA QUESTIONS POSTED ON 25 FEB PREVIOUSLY

please answer my fra questions as approx one month had passed since posted

0

464

anbu.edu

Fri Mar 22, 2013 1:16 am

FRM-Regression analysis

Which of the following statements regarding the coefficient of determination is least accurate? The coefficient of determination: A) may range from â1 to +1. B) is the percentage of the total variation in the dependent variable...

1

184

shah.vishal

Thu Mar 21, 2013 10:48 pm

Discrete compounding rate

How to find discrete compounding rate from continious compounding rate? if continious compounding rate is 10.75% , semi annually. e 0.1075 = (1=r/2)2 please solve this step wise

1

206

anbu.edu

Thu Mar 21, 2013 10:22 pm

FRM-Quants

The sample mean is an unbiased estimator of the population mean because the: A) sampling distribution of the sample mean has the smallest variance of any other unbiased estimators of the population mean. B) expected value of the ...

1

205

anbu.edu

Thu Mar 21, 2013 2:01 am

FRM-Quants

The joint probability distribution of random variables X and Y is given by f(x,y) = kxy for x = 1, 2, 3, y = 1, 2, 3, and k is a positive constant. What is the probability that X + Y will exceed 5? Choose one answer. a. 1/4 ...

1

216

shah.vishal

Wed Mar 20, 2013 4:36 pm

TVM Calculation Recordings on BA plus II

I followed recording on Tutorial for Time value of Money exactly guided by Pristine and I have replicates the steps accordingly for the questions solved by you in recordings in which first Answer is 965. something where i am getti...

1

192

anbu.edu

Wed Mar 20, 2013 3:55 pm

FRM-Quants

pproximately 50 percent of all observations for a normally distributed random variable fall in the interval: A) µ ± 0.67Ï B) µ ± Ï C) µ ± 2Ï D) µ ± 3Ï If the ans i A . can u please explain

1

197

anbu.edu

Wed Mar 20, 2013 1:39 am

FRM-Quants

For two (possibly dependent) random variables, X and Y, an upper bound on the covariance of X and Y is: A) 1. B) Ï(X) ⢠Ï(Y). C) there is no upper bound unless the variables are independent. D) zero. Can you please explain ...

1

198

anbu.edu

Wed Mar 20, 2013 1:32 am

FRM-Quants

The correlation coefficient for two dependent random variables is equal to: A) the product of the standard deviations for the two random variables divided by the covariance. B) the covariance between the random variables divided ...

1

201

anbu.edu

Wed Mar 20, 2013 1:27 am

FRM-Quants

Which model does not lend itself to correlation coefficient analysis? A) Y = X + 2. B) X = Y Ã 2. C) Y â X = 2. D) Y = X3. Can you please explain the answer

0

185

anbu.edu

Tue Mar 19, 2013 4:20 pm

FRM-Quants

Can we say P(A|B) =P(B|A) and can you please explain the concept behind P(B) = [P(B|A) Ã P(A)] + [P(B|AC) Ã P(AC)]

1

181

anbu.edu

Tue Mar 19, 2013 3:38 pm

FRM-Quants

A conditional expectation involves: A) determining the expected joint probability. B) calculating the conditional variance. C) estimating the skewness. D) refining a forecast because of the occurrence of some other event. Can yo...

1

184

anbu.edu

Tue Mar 19, 2013 1:00 am

QUANTS

Consider the following linear regression model: Y = a + b*X + e. Suppose a = 0.05, b = 1.2, Std(Y) = 0.26, Std(e) = 0.1, what is the correlation between X and Y? Choose one answer. a. 0.852 b. 0.701 c. 0.923 d. 0....

0

177

ameyakukde

Mon Mar 18, 2013 11:20 pm

BPV

Given the following portfolio of bonds: Bond Price Par amount held (in USD million) Modified duration (in this order the values are mentioned) A 101.43 3 2.36 B 84.89 5 4.13 C 121.87 8 6.27 What is the value of the portfoli...

1

560

priya.accmail

Sun Mar 17, 2013 9:02 pm

Block Brokers?

Who are block Brokers? What do they do? Can any one please explain in detail?

CFA

1

362

shah.vishal

Sat Mar 16, 2013 7:49 pm

Future Price Valuation

Assume that the current 1-year forward exchange rate is 1.200 USD per EUR. An American bank pays 2.4% annual interest rate on a 1-year deposit and a 4.0% annual interest rate on a 3-year USD deposit. A European bank pays a 1.5% an...

1

238

ameyakukde

Sat Mar 16, 2013 6:05 am

BSM

Suppose strike price of the call option is Rs. 90 and current price is 90. A one-step binomial model is built to price the option. Suppose the price of the stock moves up to 94.5 with probability 0.6 and moves down to 85.71 with p...

3

221

ameyakukde

Sat Mar 16, 2013 5:59 am

Options Quiz 2 Q3 PRM

Suppose current price of the stock is $20. What is the delta of the call option on the stock with strike price $20 if the price of the stock moves up to $22 with probability 60% and moves down to $18 with probability 40%? How to ...

1

175

ameyakukde

Sat Mar 16, 2013 5:54 am

Options Quiz 2 Q 5 PRM

Suppose risk-free rate of interest is 5%, volatility of the stock price is 35% and each step of the binomial model is 0.1 years, what is the probability of up-movement at each step of the binomial model? In the soln, shouldn't it...

1

372

ameyakukde

Sat Mar 16, 2013 2:29 am

Greeks: Delta Question Pristine Options Quiz 1 Q.18 PRM pape

A bank has sold $300,000 USD of call options on 100,000 equities. The equities trade at 50, the option strike price is 49, the maturity is in 3 months, volatility is 20%, and the interest rate is 5%. How does it the bank delta hed...

1

325

anbu.edu

Sat Mar 16, 2013 1:14 am

FRM-Regression analysis

The purpose of regression is to: A) explain the variation in the dependent variable. B) explain the variation in the independent variable. C) get the largest R2 possible. D) explain the mean of the independent variable. Can the ...

1

171

shah.vishal

Fri Mar 15, 2013 3:27 pm

Stack and Roll Concept

Please Explain &quot;largest cash inflows (i.e., the best case) occur when the market is in backwardation and spot prices are rising. The worst cash-flow effects occur when the spot price is falling and the market is in contango....

1

194

anbu.edu

Thu Mar 14, 2013 4:13 pm

FRM-Hypothesis testing

A goal of an âinnocent until proven guiltyâ justice system is to place a higher priority on: A) avoiding type II errors. B) avoiding type III errors. C) avoiding type I errors. D) the null hypothesis. Is it (D) or (C) which ...

1

186

anbu.edu

Thu Mar 14, 2013 3:15 pm

FRM-hypothesis testing

If the null hypothesis is innocence, then the statement âIt is better that the guilty go free, than the innocent are punishedâ is an example of preferring a: A) type I error over a type II error. B) two tailed test over a one...

1

273

anbu.edu

Thu Mar 14, 2013 2:41 pm

hypothesis testing

A bottler of iced tea wishes to ensure that an average of 16 ounces of tea is in each bottle. In order to analyze the accuracy of the bottling process, a random sample of 150 bottles is taken. Using a t-distributed test statistic...

1

627

anbu.edu

Thu Mar 14, 2013 12:52 am

FRM-Quants

Robert Patterson, an options trader, believes that the return on options trading is higher on Mondays than on other days. In order to test his theory, he formulates a null hypothesis. Which of the following would be an appropriate...

1

232

clever.tina

Tue Mar 12, 2013 9:48 pm

Cfa-Portfolio

Hi all, Can anyone plz tell me how to solve the following equations in BA2 PLUS Calculator :- a+b+c = 1 1a+ 0.5b+ 1.3c = 1.3 1.5a+ 1b+ 1.1c =1.975

2

175

anbu.edu

Tue Mar 12, 2013 5:24 pm

FRM-FMP can you please ans this qustion

Lisamaria Traina, FRM is short a series of copper futures contracts. At present, copperâs carrying cost is greater than the convenience yield. What should Traina do? A) Deliver the contract at expiration. B) Deliver when future...

2

206

anbu.edu

Tue Mar 12, 2013 4:14 pm

FMP-Valuations of Forwardss

can anybody explain the concept of the formula (so*e^-qt--K*e^-rt) and why is R negative.

1

214

ameyakukde

Sat Mar 09, 2013 11:44 am

Greeks: Delta

I was reading but Greeks when this caught my attention: When the stock price increases, one should buy more stocks to make the portfolio delta neutral. In case it decreases, one should sell stocks. My idea is when the stock price ...

1

303

pradeeppdy

Thu Mar 07, 2013 4:54 pm

equity investment

why the equity owners of bank,brokers, and other intermediaries absorb any loan losses before depositers and other banks ?

1

171

pankaj

Thu Mar 07, 2013 9:31 am

lease tell me detailscomapany comparables and transaction co

Hello Sir i did not understand the concept of company comparables , and transaction comparables. Please tell me in detail what is these, How we search it and what is the final interpretation and analysis we pick from these analysi...

1

185

anbu.edu

Wed Mar 06, 2013 11:13 pm

frm-Can you please ans this question

A joint probability of A and B must always be: A) greater than or equal to the conditional probability of A given B. B) greater than or equal to than the probability of A or B. C) less than or equal to the conditional probabil...

1

201

anbu.edu

Wed Mar 06, 2013 11:12 pm

FRM-Can you please ans this question

If the outcome of event A is not affected by event B, then events A and B are said to be: A) statistically independent. B) mutually exclusive. C) collectively exhaustive. D) conditionally dependent. Is {B} correct?

1

189

anbu.edu

Wed Mar 06, 2013 11:07 pm

FRM-Can you please ans this question

Dependent random variables are defined as variables where their joint probability is: A) equal to zero. B) greater than the product of their individual probabilities. C) equal to the product of their individual probabilities. ...

1

208

deepakkrkanodia

Mon Feb 25, 2013 8:43 pm

FRA- CFA L1 queries

Q1. If any asset is sold at profit in a given year, lets say any machinery is sold at profit of rs 200000, in F/Y 2011-12 then how does it affect financial statements, B/S, P/L and CF. According to my understanding, if any asset i...

1

217

paresh.patel

Fri Feb 22, 2013 10:22 pm

Books

Sir/Madam i have search on google for frm handbook by philippe jorion and Scheweser Notes. Frm handbooks 6th edition is costly Rs.9209. and i cannot search Scheweser Notes zeroxe.I have not purchase core reading by GARP,if I will ...

FRM

1

265

teja.s.srungaram

Thu Feb 21, 2013 11:17 pm

unable to download FRM recordings

I am Unable to download the FMP recordings especiallyMEETING SOFTWARE even after installing the GOTO so please lemme know of what to do or provide me with the material which contains recordings

1

288

paresh.patel

Wed Feb 20, 2013 11:53 am

Materials

Only pristine materilas is not enough to clear exam? FRM core reading books i have not purchased,is it must to purchase? the zeroxe copy can provided from your side?and i want to know from where i can buy BA Plus II professional c...

1

215

mohit.gautam1983

Tue Feb 19, 2013 10:41 am

Batch started from 3rd of Feb.2013

Hi, this is mohit from delhi batch started from 3rd of Feb.2013, guys i could not attend first 4 session of classes due to my tight schedule can anyone help me about the topics discussed in these classes. it would be a great hel...

0

290

parthasd.bt

Fri Feb 15, 2013 11:43 am

CFA Level 1 Preparation

Is there any one from Bangalore who is preparing for CFA Level 1 ?

0

327

piyul07

Wed Feb 13, 2013 3:58 pm

Probablity

How can i will get No.of questions on probablity.

1

188

sairamu217

Wed Feb 13, 2013 3:26 pm

FSAIII

The current ratio of a firm is 1.5. If the firm decides to pay off 10% of its creditors, how would if impact the current ratio? A. Increase B. Decrease C. No Impact

3

332

sps.singh32

Wed Feb 13, 2013 10:31 am

ethics

it will b fine if i do ethics from schweser

cfa

1

444

avishek.srivastava8

Tue Feb 12, 2013 3:12 pm

FRM Quiz

Consider a stock with an intial price of $100. Its price 1 year from now is given by S=100*exp(r), where the rate of return r is normally distributed with a mean of 0.1 and standard deviation of 0.2. With 95% confidence, after rou...

FRM

0

234

deepakkrkanodia

Fri Feb 08, 2013 10:22 am

FSA L1- long term liabilities

Q1. A firm issues a $10 million bond with a 6% coupon rate, 4 year maturity, and annual interest payments when market interest rates are 7%. If the market rate changes to 8% and the bonds are carried at amortized cost, the book v...

3

4891

deepakkrkanodia

Wed Feb 06, 2013 7:35 pm

ETHICS Queries

Q1 under duties to employers, it is stated that â the codes and standards do not prohibit former employees from contacting clients of their previous firms, in the absence of noncompeting agreementâ Query: from the above state...

cfa

0

284

deepakkrkanodia

Tue Feb 05, 2013 11:08 am

FSA PDF FILE 4

IN MY LOGIN ACCOUNT IN CFA L1,,FSA 4TH PDF FILE IS SAME AS 3RD PDF FILE AND ONLY TILL READING 31 I.E. INCOME TAX IT IS COVERED. PDF 4TH FILE CONTAINING READING 32 TILL READING 35 TOPICS IS MISSING. PLZ UPDATE THAT PDF FILE AS GOT ...

1

178

rajesh.747.bits

Mon Feb 04, 2013 2:24 pm

fixed income

Difference between reinvestment risk and price risk in terms of zero coupon bond and coupon bond?

1

370

priyamvadagaur16

Fri Feb 01, 2013 8:01 am

Equity accounted investments

Hello, what is the difference between equity accounted investment and other equity investment?

1

173

anandrishi88

Wed Jan 30, 2013 7:52 pm

Derivatives

How option prices are more volatile than the prices of underlying stock?

1

195

sairamu217

Wed Jan 30, 2013 2:12 pm

FSA II

please explain operating cash flows indirect method slide no 73.

1

167

sairamu217

Wed Jan 30, 2013 2:11 pm

FSA II

please explain operating cash flows indirect method slide no 73.

0

212

sairamu217

Wed Jan 30, 2013 10:41 am

FSA II

calculation of diluted eps. for 8 qn in slide no 30 of fsa II answer is specified in slide no 32. there in the calculation of denominator its mentioned as (100-(100*50/75)). 100 is warrants 75 is avg price but how did we get 50...

1

227

amitburman04

Tue Jan 29, 2013 6:44 pm

FRM

Is it sufficient to read only schweser note and material given by the pristine for FRM?

FRM

1

267

avinashsharma99

Tue Jan 29, 2013 2:05 pm

CURRENCY FORWARD ARBITRAGE QUERY

Q. The euro currently trades at $1.0231. The dollar risk-free rate is 4 percent, and the euro risk-free rate is 5 percent. Six-month forward contracts are quoted at a rate of $1.0225. Indicate how you might earn a risk-free profit...

2

463

a.joshi.a

Wed Jan 23, 2013 7:36 am

Derivatives

If stock price is increase, why put option 's value will decrease? Lower bound of American call option is (S-K)/(1+r)powert, why? What does lower and upper bound define in case of Call and put options?

1

174

rahul.gupta.npti

Tue Jan 22, 2013 4:43 pm

INTEREST EXPENSE CALCULATION

In the case study related to fmcg sector by pristine of &quot;RCPL&quot; (day II- IV ,VALUATION) ,we have calculated the interest expense in the debt schedule sheet by first calculating the average loan outstanding . Can there be...

1

191

deepakkrkanodia

Mon Jan 21, 2013 3:37 pm

Bond price calculation query

Q. Company ABC purchased a 5% annual coupon bond, 10 years maturity, with a face value of $100 and market value $100,000 on Dec 31 2011. The market value on purchase is $100. On March 31 2012, its YTM is 6% and it is to be reporte...

1

162

deepakkrkanodia

Mon Jan 21, 2013 3:31 pm

FSA 1

Q1. An item should be recognized in its financial element if future economic benefit from item is probable. Query: what is meant by probable and what is the difference between probable economic benefit and possible economic benef...

3

250

deepakkrkanodia

Mon Jan 21, 2013 3:24 pm

FSA 1

Q1. An item should be recognized in its financial element if future economic benefit from item is probable. what is meant by probable and what is the difference between probable economic benefit and possible economic benefit Q2. ...

0

180

tamanna.keen

Tue Jan 15, 2013 5:45 pm

PPP based Financial Model

Has anyone worked on PPP based Financial Model...? If so then pls share the process of making one..

1

324

deepakkrkanodia

Sat Jan 12, 2013 11:43 am

economics deepak kanodia

Q1. PLEASE EXPLAIN THE FOLLOWING STATEMENTS : a) when regulators force monopolists to follow marginal price, price is fixed where MC curve intersects demand curve b) when regulators force monopolists to follow average cost price,...

2

256

megha.h.mehta

Fri Jan 11, 2013 12:10 pm

CFA Level I

Hello Everyone, This is Megha. Is there anyone appearing for CFA level I this June from Hyderabad?

0

390

tkvfrm

Thu Jan 10, 2013 9:14 pm

Reference to recording -- FMP -I Instructor Sameer

Hi Sameer, I have a question from this recording. 1. There is a calculation at the begining of the ppt on compounding; annual, quarterly and monthly. I did not understanding the concept. Can you please explain this in detail. als...

1

662

deepakkrkanodia

Thu Jan 10, 2013 3:04 pm

Economics l1

Q1. Given output of 500 units at total cost of $2,000, fixed cost of $1000 and marginal costs of $2 and market price of $2, to achieve optimum output, a firm operating in perfect competitive markets should A. Not change its output...

4

291

jitinmehta03

Sun Jan 06, 2013 10:43 am

Financial Modelling Exam IIM

Can anyone provide me the sample papers for financial modelling exam conducted by IIM.These sample papers will assist us in getting an idea about the type of questions that might be asked in the exam.

1

470

vishesh.2009

Tue Jan 01, 2013 12:05 pm

CFA L2 preparation

Can anyone tell on how to go for the CFA L2 preparations.

cfa

4

524

avinashsharma99

Thu Dec 27, 2012 5:13 pm

Forex Quotation for CFA Level II Exam

Hi, I just wanted to confirm whether Forex quotation USD:GBP still is in our course or has this been stopped. Please confirm. Regards, Avinash

2

519

yuvalaks

Sat Dec 22, 2012 12:55 pm

How to start Preparing for Exam1

Hi all, I have just registered with Pristine , for PRM Exam1 Can you please advise me on how to start off with the preparation . Thanks

3

845

bhavyamital

Wed Dec 19, 2012 10:16 pm

Doubt for Quant Question

1)In a given portfolio, half of the stocks have a beta greater than one. Of those with a beta greater than one, a third are in a computer-related business. What is the probability of a randomly drawn stock from the portfolio havin...

1

583

bhavyamital

Wed Dec 19, 2012 12:09 am

Doubt regarding Quant question

Given the following table about employees of a company based on whether they are smokers or nonsmokers and whether or not they suffer from any allergies, what is the probability of both suffering from allergies and not suffering f...

2

439

bhavyamital

Tue Dec 18, 2012 10:59 pm

Doubt regarding Quant question

Mital Tieneâs investment portfolio currently consists of stocks in two companies, 40% in Drysdahl Banking and the remaining amount in Clampett Oil. Performance measurement information for these two stocks is given in the table b...

1

345

nikhilsanduja

Thu Dec 13, 2012 9:40 pm

Regarding PRM handbook

Hello friends, please help me out.....i have just started PRM course and i have checked on google that &quot;PRM handbook&quot; is the best study material for preparing PRM exams( I to IV)...but i could't find this PRM handbook in...

0

746

kasliwalmumbai

Thu Dec 13, 2012 3:25 pm

Please provide me help on excel (Urgent)

I have a particular range on numbers, say for example 1 to 10 I want to have such formula such that, i can get top 3 numbers i.e Maximum 3 numbers, i.e result would be 10, 9, 8.... I can not use sort or Filter because the populat...

1

284

gautam.jain01

Thu Dec 13, 2012 6:45 am

Corporate Finance : Solutions Req

Hi, Can someone pls share the solutions to the below questions from Corporate Finance. 1. BackInSoon, Inc., has estimated that a proposed project's 10-year annual net cash benefit, received each year end, will be $2,500 with an...

1

397

uttank.kaushik

Thu Dec 13, 2012 5:33 am

Financial Calculator

I have gone through both the videos on usage of financial calculator. Although I have understood everything that was explained in the video, I have the below doubt on the calculation of NFV, PB and DPB. When I used the down/up ar...

1

465

supria.sony

Mon Dec 10, 2012 7:07 pm

FM for Banks

How to make financial model for banks? Banks financials are entirely different from that of normal companies. In the case of Banks; Balance Sheet is very important (Equivalent to CF statement in the normal companies).

1

448

supria.sony

Mon Dec 10, 2012 7:05 pm

Managing FM when new FY's results get published

Suppose I've prepared a Financial Model of a company valuation based on DCF model; I've pojected five years' (say FY13 to FY17) cash flow and then calculated terminal value. Now suppose current financial year's (FY13) results get ...

1

656

shinde.shruti

Tue Dec 04, 2012 11:24 am

How to start preparation for CFA Level 1 June 2013?

Hello, I have registered for CFA Level 1 June 2013 exam. Iam MBA (Finance) and working full time. taking note of the above, can anyone guide me regarding how to start preparing for Level 1?

2

988

nagrawal2104

Sat Dec 01, 2012 9:33 pm

Powerpoint formatting query

I am trying to create a powerpoint presentation. All the text to be shown in the slide body is added to the word document embedded to the slide. I want to add a text to the word document object, eg. the company's name, such that ...

0

384

sahiljindal1990

Thu Nov 29, 2012 2:42 pm

Alternative Iinvestments

Close End Mutual Funds are normally traded at 1 Dis to NAV 2.Premium

4

464

deepakkrkanodia

Thu Nov 29, 2012 1:58 pm

accounting conservatism in mutliples

Q. The issue of differences in accounting conservatism between companies is best addressed when companies are compared using which of the following ratios? A. Price-to-earnings B. Price-to-cash flow C. Price-to-book value Quer...

2

450

deepakkrkanodia

Thu Nov 29, 2012 1:38 pm

Speculative stock vs Growth Stock

As stated in answer to one of your questions related to speculative stock: &quot;A speculative stock is substantially overvalued and sells at an extremely high P/E ratio, just like intrinsic value of stock which came out to at 44...

2

389

sujithmeno

Wed Nov 28, 2012 1:42 am

Expected Mean calculation

Hi Can somebody explain the calculation here for expected mean? Mamta Gandhi, has following return-probability profile for three stocks. What is the expected rate of return and standard variation from his portfolio given equal we...

2

475

pradeeppdy

Tue Nov 27, 2012 2:29 pm

fra

when we are deducting the interest expenses on bond from the net income for the purpose of cfo calculation, then what amount we will consider coupon payment or interest expense(excluding o including amortization of premium o disco...

1

376

sahiljindal1990

Mon Nov 26, 2012 6:18 pm

Industy and Company Analysis

Which of the following conditions is most likely to indicate that barriers to entry into an industry are low? A) The industry has significant economies of scale. B) Market shares have been stable over the last two business c...

1

385

girimpr

Sun Nov 25, 2012 1:30 am

Derivatives - Query?

An investor buys a share of stock at $33 and simultaneously writes a 35 call for a premium of $3. What is the maximum gain and loss? Maximum Gain Maximum Loss A) $5 $30 B) unlimited -$33 C) $2 -$35 The correct answ...

2

455

girimpr

Sun Nov 25, 2012 12:31 am

Marginal Tax rate on Municipal Bond - Pls someone explain?

Consider a corporate bond with a yield of 6.8% and a municipal bond (with equivalent risk) with a 4.9% yield. Which of the following statements is most accurate? A) An investor with a marginal tax rate of 40% prefers the corpora...

2

365

pradeeppdy

Sat Nov 24, 2012 6:34 pm

equity valuation

What is GDR and ADR? is ADR means it can only be raise in usd and in usa,but GDR can be raised in any currency and in any country. Please if you can brief it.

2

402

deepakkrkanodia

Thu Nov 22, 2012 5:44 pm

Equity valuation query

Q The statement in P/E ratio fundamental comparison states âThe higher the level of debt, indicates that the company has higher risk and a higher required return on equity, which supports that the company having a lower P/E rat...

3

455

pradeeppdy

Thu Nov 22, 2012 3:38 pm

EXAM RELATED QUERIES

Can anyone suggest me what is the level of toughness in exam, Because today i have done cfa institue mocks and it is shocking?

cfa

1

576

pradeeppdy

Tue Nov 20, 2012 7:26 am

alt investment

A feature unique to ETFs is their in-kind creation and redemption of shares,i didn't understand the meaning of in kind creation?

1

348

swarnendupathak

Mon Nov 19, 2012 1:35 pm

FRM Part-1 Nov_2012 Exam Feedback

[color=#008000:3ize7c8c]Hi to all, do anybody share his/her experiance about the exam??? highlighting on difficulty level &amp; epected probable cut-offs..??!!! Swarnendu[/color:3ize7c8c]

5

1042

deepakkrkanodia

Sun Nov 18, 2012 12:34 am

MKT EFFICIENCY QUERY

what exactly do we mean by anomalies in market efficiency? plz explain the line &quot; The bottom line for investors is that portfolio management based on time series data, cross sectional data and other anomalies will likely be ...

2

444

pradeeppdy

Fri Nov 16, 2012 7:11 pm

ethics

what is soft dollor compensation?

3

413

pradeeppdy

Fri Nov 16, 2012 7:09 pm

fra

what is the difference between lifo reserve and lifo ending inventory?

1

347

blueraven82

Fri Nov 16, 2012 3:02 pm

Problems with annual interest rate

I have a query with finding the annual interest rate. In the questions the PV &amp; FV are given &amp; it is mentioned that it is compounded monthly, quarterly etc. e for period of x. The annual interest rate has to found out. Th...

1

372

ravi.nandi82

Fri Nov 16, 2012 10:50 am

Cash flow for manufacturing company for partnership

dear all i am facing the problem in prpearing cash flow and working capital . iahd doen the historiocal data and rati o analysis and i cant able to prepar ethe cash flow i here by attching the entire projections sheet whi...

2

2900

yshinde123

Fri Nov 16, 2012 10:35 am

CFA - Level I- Economics

Please let me know, What are the important modules in [b:3epbwewx]CFA level 1[/b:3epbwewx] - [color=#004000:3epbwewx][b:3epbwewx]economics [/b:3epbwewx][/color:3epbwewx]? so that i can concentrate more on them. thank you -Yogesh

1

420

balajismz

Fri Nov 16, 2012 7:13 am

Hedge ratio

In case of cross hedging, -&gt; the value of hedge ratio is high if the changes in stock prices of the two involved assets are highly correlated. Is the above statement true or false -Balaji

0

392

balajismz

Fri Nov 16, 2012 6:32 am

Price orders

200.1. You want to purchase 5,000 shares of a stock with the following real-time quote: bid $29.94 - ask $30.08 with bid-ask sizes of 3,000 shares (bid) and 10,000 shares (ask). The previous price close was $29.99. Which of the fo...

0

361

AMITAG1990

Thu Nov 15, 2012 9:10 pm

answer

Please team pristine i request you to solve all query by tommorow morning As after tommorow morning i have to leave for mumbai.. So please.

0

365

AMITAG1990

Thu Nov 15, 2012 8:51 pm

Mock test 1

An investment manager has USD 100mn to invest. He can choose either of three unknown stocks. One of the stocks will give him a return of 100% in 3 years. The other two stocks will give 0 returns in 4 years and 5 years respectively...

0

533

AMITAG1990

Thu Nov 15, 2012 8:38 pm

Mock test

Bank has a cash position of 1M Euro. The Euro exchange rate is 0.95 USD/EUR. The one-day Euro exchange rate is normally distributed with mean 0.95 and standard deviation 0.01. Compute the one-day Value at Risk with 95% confidence ...

0

383

AMITAG1990

Thu Nov 15, 2012 8:31 pm

Mock test 1

Estimating future volatility using historical data requires time to adjust to current changes in the market &amp; hence implied volatility is an alternative method for the estimating future volatility. How is implied volatility in...

0

368

AMITAG1990

Thu Nov 15, 2012 5:56 pm

Mock test 2

A Multi Year Restructuring Agreement for a $300 million loan with a sovereign has the following features: Maturity extended to five years Principal amortization for four years at 25% per year Grace period of 1 year Up-front fee =...

0

354

AMITAG1990

Thu Nov 15, 2012 5:06 pm

hedging

A fund manager has a portfolio worth $20 million with a beta of 1.2. The manager is concerned about the performance of the market over the next 2 months and plans to use 3-month futures contracts on the Nasdaq to hedge the risk. T...

0

346

AMITAG1990

Wed Nov 14, 2012 3:31 pm

Mock test 2

An investor is holding a portfolio of 10 BBB-rated bonds. The probability that a bond will be defaulted is 0.25. The default between the bonds is independent. What is the probability that at least 4 bonds will not be defaulted? Ch...

1

370

AMITAG1990

Wed Nov 14, 2012 3:18 pm

Mock test 2

Tinaâs portfolio has a large (negative) theta. She is planning to add a call option on a non dividend paying stock to her portfolio. She doesnât want the new option to change the overall theta of her portfolio by a large exten...

3

428

naresh.thkr

Wed Nov 14, 2012 12:16 pm

Option..

A path-dependent option is priced with a variable-node trinomial lattice. What should be done to reduce computational time without losing too much precision? Choose one answer. a. Set the model to binomial. b. Use same-leng...

1

332

balajismz

Wed Nov 14, 2012 9:17 am

Historical vs Monte Carlo

When would a Monte Carlo simulation be preferable to a historical simulation? A) Historical data does not produce favorable results. B) Insufficient computer capacity. C) A large amount of historical data is available. D) There i...

1

364

balajismz

Wed Nov 14, 2012 8:53 am

Exchange rate & Var

Can someone try the below problem?? An American bank has a cash position of â¬1 million. The euro exchange rate is 0.95 USD/EUR. The 1-day euro exchange rate is normally distributed with mean 0.96 and standard deviation 0.01. Co...

0

350

AMITAG1990

Tue Nov 13, 2012 6:55 pm

kurtosis

An analyst collected the data for return given by the stock of Riflead ltd. for last 75 periods. He wanted to check the Kurtosis of the data relative to the normal distribution. The sum of the fourth power of deviation from the me...

2

400

AMITAG1990

Tue Nov 13, 2012 6:16 pm

Hypothesis

Please any one tell me if in Hypothesis value of calculated t stat is equal to the t critical value then whether the null hypothesis should be rejected of fail to reject. and also tell me if sample size n=30 then Which distributio...

1

382

balajismz

Tue Nov 13, 2012 1:39 pm

Anyone appearing for FRM exam at Bangalore??

Hi Guys, I am new to this place, not sure how far the center is. Is anyone giving their exam from Bangalore?? Thanks, Balaji

FRM

0

440

madhuri1682

Tue Nov 13, 2012 10:34 am

cox, ingersoll, ross model

Steffy Williams is a fixed income portfolio manager which consists of option free government securities and corporate bonds. She predicts that short term interest rate will increase by 1% to 5.5% in next three months. But, she is ...

0

155

AMITAG1990

Mon Nov 12, 2012 6:09 pm

Eurodollar

A bank will finance a 1 yr loan with a series of four 3- month eurodollar issues. the bank will hedge their financing risk in the eurodollar futures mkt. the hedge suffer from which of the following problem.. 1) Liquidity mismat...

3

356

AMITAG1990

Mon Nov 12, 2012 6:02 pm

VaR

Under which of the following condition VaR always increases.? A) When the level of confidance decreases B) When the mean of thhe return distribution is greater than 0. Ans is neither of them.. But In my understanding, A should b...

4

487

AMITAG1990

Mon Nov 12, 2012 5:59 pm

Option

Early Excercise of an option is more likely for which of following.. A) American call option on stocks paying small Dividend B) American call option close to maturity. Please explain which one is right..?? In my oponion both are...

3

612

swarnendupathak

Mon Nov 12, 2012 2:10 pm

Forward Rates Agreement (Moct Test 11-11-2012)

An FRA trader entered into an FRA agreement in which he will pay 6% (assuming quarterly compounding) between 3 months and 6 months. The principal for the trade is $3 million. The 6-month LIBOR spot rate is 5.80%. If trader had a g...

7

640

swarnendupathak

Mon Nov 12, 2012 12:52 pm

2nd Mock Test on 11-11-2012

Hi all, I feel this Mock as bit lengthy &amp; i was running short of time at some point.. what is the take of others.. about the lengthyness &amp; difficulty level of the test...?? Swarnendu

0

346

madhuri1682

Mon Nov 12, 2012 12:52 pm

binomial model

A stock price is currently $50. Each month for the next two months it is expected to increase by 9% or reduce by 11%. The risk-free interest rate is 6.5%. Use a two-step tree to calculate the value of a derivative that pays off ma...

2

355

madhuri1682

Mon Nov 12, 2012 12:47 pm

confidence interval

For the standard normal distribution, what is the value of P(-1.87 &lt;= Z &lt;= 1.23) or P(|Z| &lt;= 1.6)? Choose one answer. a. 0.5683 b. 0.8794 c. 0.7831 d. 0.9145 how to calculate?

1

309

balajismz

Sun Nov 11, 2012 6:21 pm

F test / Chi Square Test

A Fixed Income Mutual Fund analyst collected the quarterly data for 5 year government securities returns for the 10 year period from 1999-2009. The variance for the data is 0.0210 and it is normally distributed. The analyst collec...

3

316

vandhana.gopalakrishnan

Sun Nov 11, 2012 5:35 pm

Effect of Tax Rate Change on DTL

I am unable to follow the tax rate change example in the curriculum. Carrying value for 2006,2005 and 2004 are 14,000 ; 16,000 ; 18,000 respectively. Tax base for 2006,2005, and 2004 are 11,429 ; 14,286 ; 17,143 respectively D...

1

473

d2syh

Sun Nov 11, 2012 12:38 pm

LIBOR Question

A bank has entered into a forward rate agreement to pay a fixed rate of 4.15 %( semiannually compounded) on $9 million between 6 and 9 months. If the LIBOR rates in 3 months, 6 months and 9 months are 5%, 4.5% and 3.5% respectivel...

1

351

agrawalanks

Sun Nov 11, 2012 3:26 am

Swaps and Forex Risks Duration Related Query

Can some one please explain how do we arrive at a duration of 7 years for this bond in the below question? Hong Kong Shanghi Bank has entered into a repurchase agreement with a client where the client will sell a 10-year treasury...

1

362

balajismz

Sat Nov 10, 2012 11:07 pm

Cheapest to Deliver Bond

Consider a Treasury bond futures contract wherethe cheapest to deliver bond is a 10% coupon bond. The delivery is going to happen in 240 days. The last coupon date was 50 days ago, the next coupon date will be after 132 days and t...

1

367

balajismz

Sat Nov 10, 2012 10:32 pm

Leptokurtic & Platykurtic

A symmetric distribution with more that 5% of area under the curve falling beyond±2standard deviations from the mean will be a platykurtic curve. Explaination given: In a normal curve, 5% of values fall beyond +,-1.96 std dev. ...

2

582

naresh.thkr

Sat Nov 10, 2012 8:31 pm

Forward and future quiz 2 - Eurodollar Futures

Roughly how many three-month LIBOR Eurodollar futures contracts are needed to hedge a position in a $200 million, 5-year receive-fixed swap? Choose one answer. a. Long 250 b. Short 3,200 c. Short 250 d. Short 40,0...

2

450

agrawalanks

Sat Nov 10, 2012 7:34 pm

Forwards & Futures Query from Quiz 1

Can some one please answer the below with justification as in the quiz the answer provided is quite confusing and it mentions option 3 as well as option 4? The spot price of corn on April 10 is 207 cents/bushels. The futures pric...

1

311

d2syh

Sat Nov 10, 2012 7:24 pm

Risk Question

A portfolio manager has USD 50 Million in the Trading Position with an income of USD 10 Million and 15% per annum volatility in returns. Calculate the per annum risk-adusted return at 95% confidence interval? Choose one answer. ...

0

326

naresh.thkr

Sat Nov 10, 2012 6:00 pm

Forward and future quiz 2

If two securities have the same volatility and a correlation equal to -0.5, their minimum variance hedge ratio is Choose one answer. a. 4:1 b. 2:1 c. 16:1 d. 1:1 Hi, Can any one explain the concept. Thnx Nare...

1

319

AMITAG1990

Sat Nov 10, 2012 5:00 pm

Mock test

What impact will a decrease in the risk-free interest rate have on the price of an American put option with the stock price and all other variables remaining the same? Choose one answer. a. No impact. Incorrect b. Negative. In...

2

362

vandana.jain

Sat Nov 10, 2012 4:39 pm

mock 2 paper 2

[url:1veynrzf]http&#58;//www&#46;edupristine&#46;com/infrastructure/mod/quiz/review&#46;php?q=2397&amp;attempt=55195[/url:1veynrzf] in question 23 how to calculate this and why 2nd option and 4th option is not correct question...

1

313

madhuri1682

Sat Nov 10, 2012 3:35 pm

mock test 1

John, a quantitative analyst at an Indian company IC Inc. needs to estimate the correlation of the sales of IC with its British counterpart BC Corp. John knows that the sale of both the companies depend only on the GDP of their re...

2

422

deepakkrkanodia

Sat Nov 10, 2012 3:05 pm

Portfolio Management Query deepak

Question 1: When assessing the performance of a single investment fund, the asset allocation decision explains: A. a little less than 100% of the level of a fundâs returns. B. about 90% of the fundâs variation in returns ac...

3

882

satyanandan.atyam

Sat Nov 10, 2012 2:59 pm

MOCK Test I & II

I have scored 60% avg in all my Mock test. What does this score signify

1

261

madhuri1682

Sat Nov 10, 2012 2:55 pm

mock test 1

Suppose that in a Treasury bond futures contract, it is known that the cheapest-to-deliver bond will be a 14% coupon bond with a conversion factor of 1.345. Suppose also that it is known that delivery will take place in 270 days. ...

2

594

vandana.jain

Sat Nov 10, 2012 2:05 pm

FRM Level 1 Mock 2 Paper 1

In the equation for forecasting stock price Yt = .7Yt-1 + et + .6et-1 the correlation between Tuesdayâs price on Thursday of the same week is Choose one answer. a. 0.3 b. 0.49 c. 0.51 d. 0.7 How to solve th...

FRM

0

440

naresh.thkr

Sat Nov 10, 2012 10:46 am

VAR Quiz 2

11. Which of the following is most accurate with respect to Delta-Normal VaR? Choose at least one answer. a. The delta-normal method provides accurate estimates of VaR for options that are at-or-near-the money and close to expir...

1

341

balajismz

Sat Nov 10, 2012 10:06 am

Euro Dollar Futures

A.) Euro Dollar futures are designed to lose money if int rates rise. B.) FRAs are designed to gain money if int rates rise Which of the above is true?? Balaji

1

346

agrawalanks

Sat Nov 10, 2012 2:44 am

CAPM Beta Query

Hi Everyone, The below is one of the question from Quiz 2 on Foundations of Risk Mgt. Can someone please justify how point III is correct in the below question? i.e. A negative beta might occur even when both the benchmark index a...

1

369

balajismz

Fri Nov 09, 2012 10:36 pm

Duration of Inverse floater

Suppose that the coupon and the modified duration of a 10 year bond priced to par is 6% and 7.5% respectively. What is the approximate modified duration of a 10 year inverse floater priced to par with a coupon of 18%-2*LIBOR (1 mo...

2

440

madhuri1682

Fri Nov 09, 2012 6:00 pm

spread strategy payoff

An investor purchases a call on a stock, with an exercise price of $60 and a premium of $2, and purchases a put option with the same maturity that has an exercise price of $65 and a premium of $1. Compute the payoff of a strangle ...

3

2586

AMITAG1990

Fri Nov 09, 2012 5:11 pm

FRA

Consider a Forward Rate Agreement which receives a rate of 8%, annually compounded, on a premium of $100 between the end of year 1 and year 2. Find out the value of the FRA using the additional information provided in the followin...

3

355

AMITAG1990

Fri Nov 09, 2012 5:04 pm

Binomial

An American call option with a life of 1 year has a strike price of $43 and the underlying stock is trading at $44. The volatility of the stock is 8%, the risk free interest rate is 5% and one time steps is 6-months long. Choose o...

2

409

AMITAG1990

Fri Nov 09, 2012 4:46 pm

6 nov mock test

Suppose there are two call options on the same stock which is trading at $40. The options are having strike prices of $40 (C40) and $45(C45). Suppose the volatility of the stock increases by 0.001. How will be the increase in the ...

1

315

AMITAG1990

Fri Nov 09, 2012 4:38 pm

6 nov mock test

A stock is trading at $55 and a put option on the stock has strike price of $50. If the stock price increases to $57 then which of the following is most likely change in the option price? Choose one answer. a. Increase by $0.40 ...

3

354

d2syh

Fri Nov 09, 2012 3:18 pm

VAR question

A portfolio consists of two zero coupon bonds, each with a current value of USD 10. The first bond has a modified duration of 1 year and the second has a modified duration of 9 years. The yield curve is flat and all yields are 5%....

1

322

AMITAG1990

Fri Nov 09, 2012 1:13 pm

Upper & lower bound

Consider an American Call and a Put option of 4-months duration, written on an underlying stock currently priced at $40. The Strike price for the options is $35 and the risk-free rate is 4.5% (continuously compounded). Determine t...

3

365

AMITAG1990

Fri Nov 09, 2012 12:50 pm

Var

hi, actually i have one doubt regarding the use of one tail and two tail distribution in relation with VaR. Actually in VaR que most of time they uses a one tail value and some times uses a two tail Z value. please some one can te...

1

320

balajismz

Fri Nov 09, 2012 8:16 am

Dv01 of FRA

Roughly estimate the DV01 for a 2 * 5 CHF 100 million FRA in which a trader will pay fixed and receive floating rate. A. CHF 1,700 B. CHF (1,700) C. CHF 2,500 D. CHF (2,500) Ans given is C I reckon it should be 4 as the trader ...

3

653

madhuri1682

Thu Nov 08, 2012 9:44 pm

quiz

A portfolio manager has USD 50 Million in the Trading Position with an income of USD 10 Million and 15% per annum volatility in returns. Calculate the per annum risk-adusted return at 95% confidence interval? Choose one answer. ...

1

336

dee5.v

Thu Nov 08, 2012 9:17 pm

General exam queires

Hello Sir / Madam, In the CFA DEC 2012 exam, 1. The questions will be asked Section wise right ? i.e Eco, Ethics, Fixed etc ? 2. Is there any time limit to answer sections ? Schweser Practice exams s...

1

413

AMITAG1990

Thu Nov 08, 2012 6:20 pm

Mock test

Six straight lines and five circles intersect then the maximum possible number of distinct points of intersection is Choose one answer. a. 95 b. 80 c. 150 d. 120 plz solve this.

3

387

AMITAG1990

Thu Nov 08, 2012 6:17 pm

Mock test

In the equation for forecasting stock price Yt = .7Yt-1 + et + .6et-1 the correlation between Tuesdayâs price on Thursday of the same week is Choose one answer. a. 0.3 b. 0.49 c. 0.51 d. 0.7 How to solve it..??

3

392

AMITAG1990

Thu Nov 08, 2012 6:12 pm

Mock test

The current price of XYZ holdings Pvt. Ltd is $50. The annual standard deviation is 18%. The continuously compounded risk-free rate is 9.5% per year. Assume XYZ pays no dividends. Compute the value of a 1-year European call option...

4

398

vandana.jain

Thu Nov 08, 2012 4:11 pm

VaR question

Imagine a portfolio which holds two binary options, each with the same payoff and probability: USD -100 with a probability of 4% and USD 0 with a 96% probability. Assuming the underlying has uncorrelated returns, what is the VaR (...

1

327

vandana.jain

Thu Nov 08, 2012 4:08 pm

Var....

In a two-position portfolio consisting of positions X and Y, it is found that the marginal VAR of X is greater than that of Y. Using this information, which of the following is most likely to be TRUE? Increasing the allocation to:...

2

311

d2syh

Thu Nov 08, 2012 3:11 pm

FRA Question

Suppose you traded a FRA of value (approx.) $7165 for the period between 3 to 6 months on a principal of $1mn. The spot rate for 6 month LIBOR is 5% and FRA pays 10% (quarterly compounding). Find out 3 month LIBOR spot rate. Choos...

2

369

d2syh

Thu Nov 08, 2012 1:34 pm

Option Question

A 3-month American put option on a stock XYZ for strike price $40 is currently selling for $2.50. The stock itself is selling for $41. The risk free rate of interest is 7.5%. The 3-month American call option for strike price $41 w...

1

348

d2syh

Thu Nov 08, 2012 12:52 pm

Unable to download

Hi, I am unable to download the pictures in the quizzes. Is there a setting? Is any one having the same issue? Thanks...

2

335

swarnendupathak

Thu Nov 08, 2012 9:30 am

Forward Rates Agreement Interest Calculation

Hi, small doubt... The FRA are used to be for 3 or 6 months for which we nedd to calculate the interest amount. So, is it mandatory to use interest rate with the same compounding frequency i.e. quarterly or half-yearly, even if th...

1

356

d2syh

Thu Nov 08, 2012 9:20 am

FRM Mock Test Q15

A fund manager has a portfolio worth $10 million with a beta of 1.0. The manager is concerned about the performance of the market over the next 2 months and plans to use 3-month futures contracts on the Nasdaq to hedge the risk. T...

FRM

0

425

AMITAG1990

Wed Nov 07, 2012 8:30 pm

Mock test 1

Moodyâs recently gave a rating of A to Dexter Incorporation and stated that the credit outlook is developing/evolving. What does this mean? Choose one answer. a. Dexter has still not been rated.[b:1xpgi4ea] Incorrect [/b:1xpgi4...

1

302

AMITAG1990

Wed Nov 07, 2012 8:26 pm

Mock test 1

What would be the approx market risk capital requirement for a bank with a one- day VaR of $150 and a specific risk surcharge of $30, based on the currentBIS minimum capital requirements? Choose one answer. a. $564 Incorrect ...

1

4108

d2syh

Wed Nov 07, 2012 3:33 pm

Price of Option...

A 6-month American put option with a strike price of $42 has an underlying stock which is trading at $40. In 3 months the stock either moves up by 10% or down by 10%. The risk free interest rate is 6%. Determine the price of the o...

3

251

d2syh

Wed Nov 07, 2012 3:32 pm

2 step binomial

Calculate the value of a 1-year European call option using two step binomial tree. The underlying asset is trading at $50 and the strike price is $48. The risk free interest rate is 8%. The asset has a volatility of 10% and a divi...

4

281

swarnendupathak

Wed Nov 07, 2012 3:08 pm

Contango & Backwardation

Hi all, Is there is any difference between contango with normal Contango &amp; backwardation with normal backwardation???? Swarnendu

3

274

vandana.jain

Wed Nov 07, 2012 2:25 pm

FRM Level I Mock Test II: Morning Session

The variance of the market portfolio is known to be 0.20, i.e. Sigmam2 = 0.20. Which of the following is/are true? I. A stock which has a variance of 0.05 gives lower returns than the market II. A stock which has a variance of 0....

3

320

d2syh

Wed Nov 07, 2012 12:31 pm

Probability

From a pack of well shuffled cards, one card is drawn and kept aside. Then second card is drawn and then kept aside. After that first card (which was drawn first time) is kept back in the pack of cards, and then the third card is ...

2

233

d2syh

Wed Nov 07, 2012 11:43 am

Hedge Question

A fund manager has a portfolio worth $10 million with a beta of 1.0. The manager is concerned about the performance of the market over the next 2 months and plans to use 3-month futures contracts on the Nasdaq to hedge the risk. T...

0

234

swarnendupathak

Tue Nov 06, 2012 4:13 pm

Probs

The probability that an observation will lie within 3 standard deviation of the mean for any probability distributiona is atleast?? (a) .75 (b) .99 (c) .89 (d) .54 Please get me the process... Swarnendu

4

290

d2syh

Tue Nov 06, 2012 3:25 pm

13Nov Quiz on Jensen Alpha

After analysis of an extraordinary portfolio held by extraordinary manager, following information have been identified. Expected return on Market Portfolio over risk-free rate: 10.52% Standard deviation of Market: 12.4% Correlati...

3

389

AMITAG1990

Tue Nov 06, 2012 1:38 pm

foreign exchange

Actually i am facing a problem in solving the foreign exchange forward value.. At some time in solution they uses a continous discounting [ e^-(Rd-Rf)] and some time they simply uses a interest parity theorem([(1+Rd)/(1+Rf)]..even...

4

306

naresh.thkr

Tue Nov 06, 2012 11:26 am

Mock Test 4th Nov

An investor is long in a 2 year American Put option of Riverstone Ships. The up move factor is 1.23. The risk free rate is 3.5%. The current price for Riverstone Ships is $12. Which of the following is true based on one period bin...

2

256

naresh.thkr

Tue Nov 06, 2012 11:08 am

FRA

A bank has entered into a forward rate agreement to pay a fixed rate of 4.15 %( semiannually compounded) on $9 million between 6 and 9 months. If the LIBOR rates in 3 months, 6 months and 9 months are 5%, 4.5% and 3.5% respectivel...

9

564

naresh.thkr

Tue Nov 06, 2012 9:17 am

Mock Test 4th Nov

An investor has a short future contract on the stock of Glaceau Ltd. He entered into the contract at $90.Each contract has 25 stocks with a current market value of $2250. The initial margin for the contract was 800 and maintenance...

3

297

balajismz

Tue Nov 06, 2012 8:27 am

Var & Swap position

Consider a position in a 5 year receive fixed swap that makes annual payments on a USD 100 million notional. The floating leg has just been reset. The term structure is flat at 5%, the Macaulay duration of a 5?year par bond is 4.5...

2

318

balajismz

Tue Nov 06, 2012 8:13 am

Cheapest to Deliver

Can someone try this?? It is June 2nd and a fund manager with USD 10 million invested in government bonds is concerned that interest rates will be highly volatile over the next three months. The manager decides to use the Septemb...

4

408

balajismz

Tue Nov 06, 2012 8:02 am

Var & Modified Duration

A portfolio consists of two zero coupon bonds, each with a current value of USD 10. The first bond has a modified duration of 1 year and the second has a modified duration of 9 years. The yield curve is flat and all yields are 5%....

1

387

AMITAG1990

Mon Nov 05, 2012 6:34 pm

cash & carry arbitrage

what is a mean of cash &amp; carry arbitrage.. and inverse cash &amp; carry arbritage.??

1

276

swarnendupathak

Mon Nov 05, 2012 3:52 pm

M2M

A common problem when determining margin between groups is agreeing upon a mark-to-market (MTM) value. Frequently, credit groups find that major discrepancies can be explained by differences in pricing of one or two trades. Which ...

2

256

swarnendupathak

Mon Nov 05, 2012 12:16 pm

Value At Risk (VaR)....1

Estimate the VaR of a 3x6 JPY 100 mn FRA. Assume that the extreme move for 3 month JPY LIBOR is 17bp &amp; 6 months JPY LIBOR is 20 bp &amp; correlation between 3 &amp; 6 months rates is 0.95. (a) JPY 50000 (b) JPY 61000 (c) JPY 8...

3

284

swarnendupathak

Mon Nov 05, 2012 11:55 am

Exam Day

Hi, Just one query, can we get the rough sheet to do the calculations or we have to do everything in calc. or can we do it in the question paper itself??? Swarnendu

3

323

balajismz

Mon Nov 05, 2012 11:27 am

Garch formula

In Garch formula what is the long term volatility and Avg Variance?? I reckon alpha0 or the 1st term is the Long term volatility and gamma is the Avg Variance. But I am finding different references in different materials. Can s...

3

388

balajismz

Mon Nov 05, 2012 9:14 am

Delta Heding

Hi Guys, Can someone try this problem? An investor is holding 10,000 shares of Shihaner which is trading $ 71. The put option on the same stock with a strike price of $70 has a delta of -0.47. The number of call option contracts...

7

449

madhuri1682

Sun Nov 04, 2012 2:25 pm

taylor approximation

A trader has an option position in crude oil with a delta of 100,000 barrels and gamma of minus 50,000 barrels per dollar move in price. Using the delta-gamma methodology, compute the VAR on this position, assuming the extreme mov...

2

286

madhuri1682

Sun Nov 04, 2012 12:49 pm

option pricing quiz 2

A European-style call spread consists of a long position in the 105 strike call and a short position in the 115 strike call both maturing in 18 months. The options are on a stock index with an annualized dividend yield of 1% per a...

7

422

madhuri1682

Sat Nov 03, 2012 9:53 pm

option pricing

A bank has sold $300,000 USD of call options on 100,000 equities. The equities trade at 50, the option strike price is 49, the maturity is in 3 months, volatility is 20%, and the interest rate is 5%. How does it the bank delta hed...

2

251

AMITAG1990

Sat Nov 03, 2012 9:26 pm

optimal weight ratio

Determine optimal weight ratio T.E vol ratio IR Manager A 5% 0.70 Manager B 5% 0.5 Benchmark 0 0 Portfolio 3% 0.82 Please explain ans.

6

384

AMITAG1990

Sat Nov 03, 2012 7:45 pm

NPV

can you please tell me how to calculate NPV on financial calc. e.g if we get $100 per year with a addition of 2% each year for 10 year then how to get the ans on financial calc. Disc @ 10% per annum.

4

338

AMITAG1990

Sat Nov 03, 2012 7:42 pm

hedging

please tell me, if we purchase a 200 call option contract each on 10 shares with time to maturity of 60 days and the delta of a option on 1 share is 0.5 then what action must take on underlying stock to hedge this..?? whether we ...

3

256

madhuri1682

Sat Nov 03, 2012 4:57 pm

forwards and futures quiz2

Hanwha Investment is underwriting a 30-year zero coupon corporate bond issue with a face value of $50 million and a current market value of $2,676,776 (a yield of 5% per six-month period). The firm must hold the bonds for a few da...

1

281

madhuri1682

Sat Nov 03, 2012 12:53 pm

VaR quiz 3

Consider a portfolio with a one-day VAR of $1 million. Assume that the market is trending with an autocorrelation of 0.1. Under this scenario, what would you expect the two-day VAR to be? Choose one answer. a. $2 million b....

4

297

madhuri1682

Sat Nov 03, 2012 12:36 pm

VaR

The Westover Fund is a portfolio consisting of 42% fixed-income investments and 58% equity investments. The manager of the Westover Fund recently estimated that the annual VAR (5%), assuming a 250-day year, for the entire portfoli...

2

256

AMITAG1990

Sat Nov 03, 2012 11:33 am

CDO & SPV

In a [b:1uiop5ia]CDO, the SPV[/b:1uiop5ia] is typically AAA rated bond.. What is CDO and SPV in above sentence.

2

262

AMITAG1990

Sat Nov 03, 2012 11:31 am

merton model

Using the Merton Model, Value of Debt increases if all other parameter are fixed and 1) the value of firm decreases 2)riskless rate increases 3)Time to maturity increases 4) Volatility of firm decreases a.1 &amp; 2 b.1 &amp; 4 c...

3

270

AMITAG1990

Sat Nov 03, 2012 11:27 am

distance of default

In a question it is given that, if credit you are considering has no systematic risk , In merton model, distance of default and EDF(expexted default frequency) are [b:14oxn0pf]-vly and non linearly related[/b:14oxn0pf]. bold wor...

1

577

AMITAG1990

Sat Nov 03, 2012 11:26 am

inverse cumulative normal function

please explain me meaning of [b:xpe86lbl]inverse normal function[/b:xpe86lbl] and[b:xpe86lbl] inverse cumulative normal function[/b:xpe86lbl]..????

1

240

swarnendupathak

Sat Nov 03, 2012 2:07 am

VaR Continued...1

A stock ha a annual expected return of 16% &amp; annual volatility of 18%, What is the 95% VaR of this stock for one quarter??? (a) -15.5% (b) -10.85% (c) -16.25% (d) 18% Please state the formula to calculate the VaR... Swarnend...

4

351

swarnendupathak

Sat Nov 03, 2012 12:47 am

VaR Continued...

(A) Roughly what is the VaR of a CAD 100 mn with 10 year Canadian govt. bond if the extreme move for the 10-Year Canadian rate is 40 bp. (a) 3000000 (b) 7000000 (c) 100000000 (d) 70000 Please help...the correct answer mentioned i...

1

309

nidhi123stary

Sat Nov 03, 2012 12:28 am

Doubts in FSA Quizzes

At the beginning of the year, triple W corporation purchased a new piece of equipment to be used in its manufacturing operation. The cost of the equipment was $25,000. The equipment is expected to be used for 4 years and then sold...

2

324

AMITAG1990

Fri Nov 02, 2012 7:17 pm

surplus at risk

please explain a concept of [b:da2eyhvh]surplus at risk[/b:da2eyhvh] and how to caculate VaR for it..??

2

272

AMITAG1990

Fri Nov 02, 2012 6:51 pm

Meaning of Monotonically decreasing

[b:2bwszk4k]Question.[/b:2bwszk4k] Portfolio A has a 1-day, 95% VaR of $5 million. Portfolio B has a 1-day, 95% VaR of $7 million. Is it possible for the 1-day, 95% VaR of the combined portfolio (A + B) to be greater than $12 mill...

2

578

swarnendupathak

Fri Nov 02, 2012 4:56 pm

Value At Risk (VaR)

A large international benk has a trading book whose size depend on he oppertunities perceived by the traders. The market ris manager estimates the One-Day VaR, at 95% confidence level to be USD 50 million. You are asked to evaluat...

3

325

madhuri1682

Fri Nov 02, 2012 12:12 pm

bond pricing quiz

What is the Net Present Value of a yearly payment starting at 100 and increasing 2% yearly for 15 years, when the discount rate is 4%? Round to the nearest tenth. Choose one answer. a. 1120 b. 1260 c. 1470 d. 1620...

2

255

madhuri1682

Fri Nov 02, 2012 11:37 am

bond pricing quiz

A firm has just issued $1,000 face value bonds with a coupon rate of 8%, paid semi-annually, and a maturity of 15 years. If the issue price for this bond is $785.50, what is the yield-to-maturity, stated annually? Choose one answe...

3

320

ven2909

Thu Nov 01, 2012 8:06 pm

Options

Can any one explain on how to proceed with the question below? An American investor holds a portfolio of French stocks. The market value of the portfolio is â¬10 million, with a beta of 1.35 relative to the CAC index. In Novembe...

2

302

AMITAG1990

Thu Nov 01, 2012 7:37 pm

Meaning of Fungible

Please tell me, What is mean by fungible.?? Actually in book it is given, I-strip is a fungible and p-strip is not.?? What is its mean.?? And also tell me what is difference between exercise price and strike price.?? it is given...

3

5138

swarnendupathak

Thu Nov 01, 2012 2:40 pm

Delta Normal VaR

The delta-Normal method of VaR of an Option position tells us that as an option moves into the money, then (a) The VaR of a call falls &amp; VaR of a Put rises. (b) The VaR of a call rises &amp; VaR of a Put falls. (c) VaR of a b...

6

454

swarnendupathak

Thu Nov 01, 2012 2:07 pm

GREEKS

If the risk is defined as a potential for unexpected loss, then which factor contribute to the risks of a long put option position?? (a) Delta, vega, rho (b) Vega, rho (c) Delta, vega, gamma, rho (d) Delta, vega, gamm, theta rho....

4

344

swarnendupathak

Thu Nov 01, 2012 2:02 pm

Interest Rate Collar

I have encountered one article regarding Interest rates collar, but bit confused. I was under the impression that Interest rate collar can be created by two ways (a) Long CAP + Short FLOOR (b) Short CAP + Long FLOOR, but bit confu...

2

318

swarnendupathak

Thu Nov 01, 2012 1:54 pm

Swapation

Hi Pristine, is Swapation is covered under the syllabus???? Swarnendy

1

274

prateek.jain1284

Thu Nov 01, 2012 10:12 am

FSA Quiz 6

A lot of images related to questions are not visible in google chrome as well as in internet explorer. This problem is also present in several other quizzes as well. Please rectify at the earliest

1

266

madhuri1682

Thu Nov 01, 2012 9:29 am

FoRM

Kalpesh argues with Jayesh that the Sharpe Ratio and the Treynor ratio are similar with only some difference. He lists the following difference. I.Sharpe uses the standard deviation, Treynor uses beta II.S is more appropriate for...

3

316

naresh.thkr

Wed Oct 31, 2012 9:31 pm

Binomial Model

Hi, Can we solve this question in any other way than normal one through Binomial model which is quite lengthy: Q. The stock price is currently $ 80. The stock price annual up move factor is 1.15. The risk free rate is 3.00%. The...

2

390

swarnendupathak

Wed Oct 31, 2012 10:24 am

Perpetual Call Option

The current price of the share of Company A is Rs. 100 &amp; they pay no dividend. Interest rate is 6% p.a. (30/360), what is the approximate price of the perpetua call option with a strike price of Rs. 100 on 1 share of Company A...

1

226

swarnendupathak

Wed Oct 31, 2012 10:01 am

Gamma & Vega Position

Hi Pristine, Can u please highlight the properties of Long/Short Gamma &amp; Vega position &amp; their implication to the option positions??? Swarnendu

1

225

swarnendupathak

Tue Oct 30, 2012 1:13 pm

Futures

The spot price of corn in April 10th is 207/bushels. The future price of the september contract is 241.5/bushels. If hedger are net short , which of the following statement is most acurate concerning the expected spot price of cor...

6

409

d2syh

Tue Oct 30, 2012 12:04 pm

Option Quiz 2 Qn21

A European-style call spread consists of a long position in the 105 strike call and a short position in the 115 strike call both maturing in 18 months. The options are on a stock index with an annualized dividend yield of 1% per a...

2

280

sreyassen

Mon Oct 29, 2012 7:56 pm

Duration based Hedging

Hi Could someone please help and explain how I should decide to long/ short Futures based on change in expected interest rate? Suddenly I am unable to work out the relation! <!-- s:shock: --><img src="{SMILIES_PATH}/icon_eek.gif"...

1

294

AMITAG1990

Mon Oct 29, 2012 7:22 pm

floater and inverse floater

please explain me in brief, what is floater and inverse floater option..??

2

326

deepakkrkanodia

Mon Oct 29, 2012 6:15 pm

Corporate Finance Queries

Q1. Acme corp has reported the following financial ratios for the past 2 years: [u:2gg9r2pp]net profit margin year 2010[/u:2gg9r2pp] - 14% [u:2gg9r2pp]financial leverage 2010[/u:2gg9r2pp] - 1.3 [u:2gg9r2pp]total asset turnover ...

4

503

madhuri1682

Mon Oct 29, 2012 6:02 pm

quant

<!-- m --><a class="postlink" href="http://www.edupristine.com">http://www.edupristine.com</a><!-- m --> Question 43 â FRM Sample Paper 2011 John is forecasting a stockâs price in 2011 conditional on the progress of certain le...

1

264

swarnendupathak

Mon Oct 29, 2012 4:03 pm

Duration of a Floater

Hi, Just a meta issue, Just wanna to know, is the duration of a floater is always Zero???? &amp; if so, is it due to reset of interest???? Please help.. Swarnendu

2

253

swarnendupathak

Mon Oct 29, 2012 2:47 pm

Duration Of Inverse Floater

Suppose that coupon &amp; modified duration of a 10-year bond prices to par is 6% &amp; 7.5 respectively. What is the appropriate modified duration of a 10-year inverse floater priced to par with a coupon of 18%-2xLIBOR (1-Month)?...

8

3332

AMITAG1990

Mon Oct 29, 2012 12:56 pm

exam paper pattern

Please let me know, In FRM exam paper, whether question can be asked from outside the syllabus specified in Garp Core Reading?? Because in Garp Practice paper of 2008 there are lot of question are from outside the syllabus specifi...

FRM

1

310

swarnendupathak

Sun Oct 28, 2012 11:56 pm

Clean & Dirty Price

Hi, A USD 1000 par corporate bond carries a coupon rate of 6%, pays coupon semiannually &amp; has 10 coupon payments to maturity. Market rates are currently 5%. There are 90 days between settlement &amp; next coupon payments. Find...

1

169

swarnendupathak

Sun Oct 28, 2012 11:53 pm

BOND

A bond portfolio manager invests USD 20mn in a bond issued at par that matures in 30 years &amp; which promises to pay an annual interest rate of 9%. the interest is paid once per year, payments are reinvested at an annual interes...

2

233

swarnendupathak

Sun Oct 28, 2012 11:47 pm

SWAP Rate

Hi, Can anyone please highlight on SWAP rate &amp; how it is calculated &amp; difference between par rate, zero rate. Swarnendu

3

214

swarnendupathak

Sun Oct 28, 2012 10:31 pm

DV01

Assuming the long term yield of a perpetual note is 5%, compute Dollar Value of a 1 bp increase in yield (DV01) of a perpetual note paying a USD 1mn annual coupon. Please solve the question. Swarnendu

1

525

kr79

Sun Oct 28, 2012 4:03 pm

BS Query

Dear Pristine Team, I'm halfway through building a financial model. I just finished modelling the cashflow numbers...the numbers match with the historical Cash Balance numbers in the Balance Sheet. However, when I take the fu...

4

452

content.pristine

Sat Oct 27, 2012 8:26 pm

New Economics Quizzes Uploaded

Hey Guys and Gals! I hope your preparations so far are going well <!-- s:D --><img src="{SMILIES_PATH}/icon_e_biggrin.gif" alt=":D" title="Very Happy" /><!-- s:D --> Thanks to several active members of the forum, it has come t...

0

629

maheshnath

Sat Oct 27, 2012 6:47 pm

Forwards & Futures -2 - Pristine Quiz

The below question is from the online Pristine Quiz, answer is not understood. Can you pls provide all the values of the formula as explained below. I'm unable to understand the solution..Thanks Hanwha Investment is underwriting...

1

422

vandana.jain

Sat Oct 27, 2012 1:42 pm

Quant & option

Please help me out with below question The ratio of Mean sum of residuals(MSR)/Mean squared Error (MSE) yields Choose one answer. a. The t statistic Incorrect b. SST Incorrect c. The F statistic Correct d. The standard e...

2

247

deepakkrkanodia

Fri Oct 26, 2012 1:23 pm

Corporate Finance working capital mgmt

Question - Blodnick Corp has found that its weighted average collection period has increased from 50 days last year to 55 days this year, and its average days of receivables this year is 48 compared to 52 last year. It is most lik...

1

348

vandana.jain

Fri Oct 26, 2012 12:21 pm

option's

Consider the following statements about American options and choose the one which is not correct. Choose one answer. a. American call options are always worth greater than or equal to European call options. Incorrect b. Americ...

3

245

vandana.jain

Fri Oct 26, 2012 11:52 am

option's

A European call option on a dividend paying stock is priced at $4 and has a strike price of $20. The stock is trading at $20 and is supposed to deliver a dividend of $0.80 after 3 and again after 6 months. The risk free interest r...

5

294

vandana.jain

Fri Oct 26, 2012 11:50 am

greeks

hi, please help me out with this question Suppose there are two call options on the same stock which is trading at $40. The options are having strike prices of $40 (C40) and $45(C45). Suppose the volatility of the stock increases ...

2

244

vinita1703

Thu Oct 25, 2012 7:39 pm

Economics quizzes 1- 7 ....Doubts

[b:2bbfda5h]test 1 : [/b:2bbfda5h] 9 A marketing survey shows that gate receipts would increase if the price of tickets to a summer rock concert increased, even though the number of tickets sold would fall. What does this imply ab...

1

467

subramanyam.sibbala

Thu Oct 25, 2012 6:47 pm

Aug2012:: Recorded videos or revision classes

Hi, Could some one help me, if revision class videos for Aug2012 are available in pristine site. If yes where can i find them. I am looking for VAR class one and two videos. Thanks, Sibbala

1

215

pradeeppdy

Tue Oct 23, 2012 8:11 am

Economics

Can anyone explian to me what is economic rent with example and how it differs from cost?

2

311

dee5.v

Mon Oct 22, 2012 10:18 am

General CFA L1

Hello Sir / Madam, Is there Negative marking for d exams ? What is the passing score for L1 ?

1

496

malika.aggarwal

Sat Oct 20, 2012 5:12 pm

Swap and forex risk: Quiz 1

Computer Package Co. considers the following swap contracts to hedge its interest rate exposure: Initiation Date: 15 June 1999 Termination Date: 15 June 2001 Notional Amount: $10 million Maturity: 1 years Floating Index: 6-month L...

2

259

prateek.jain1284

Sat Oct 20, 2012 4:29 pm

Questions on ECO 6

1. In an industry, four firm concentration ratio is 35% and HHI index is 1150, then which of the following is correct? Choose one answer. a. Market is competitive as per four firm concentration ratio, moderately competitive as p...

2

322

prateek.jain1284

Sat Oct 20, 2012 4:08 pm

Questions on ECO Quiz 5

1. The total revenue test is a method of estimating the price elasticity of demand by observing the change in total revenue that result from a change in the price, when all other influences on the quantity sold remain the same. Co...

7

539

malika.aggarwal

Sat Oct 20, 2012 2:31 pm

Option Pricing 2

Hello, Please help me with these questions.. 1) Which one of the following statements on hedging exotic options is incorrect? Choose one answer. a. Asian options are more difficult to hedge because they have more extreme gamma ...

1

284

swarnendupathak

Fri Oct 19, 2012 4:41 pm

FRM 2006 Question

Imagine a portfolio which holds two binary options, each with the same payoff and probability: USD - 100 with a probability of 4% and USD 0 with a 96% probability. Assuming the underlying has uncorrelated returns, what is the VaR ...

FRM

1

309

swarnendupathak

Thu Oct 18, 2012 2:52 pm

Forward Rates Calculations

Hi, Have a doubt, in the below mentioned problem, the correct answer of forward rate is 12.19% with calculation method of (1 + R7)^7 = (1 + R6)^6(1 + F67) &amp; slove for F67. But with the other method of (R2*T2-R1*T1)/(T2-T1) i a...

4

631

swarnendupathak

Thu Oct 18, 2012 2:39 pm

Bonds

Hi, Please help me to solve this problem, I did'nt get the solution that is mentioned. Consider a $1,000 par value bond with a 7% annual coupon. The bond pays interest annually. There are 2 years remaining until maturity. What is...

2

327

prateek.jain1284

Thu Oct 18, 2012 11:07 am

Question in ECO quiz 1

1. A marketing survey shows that gate receipts would increase if the price of tickets to a summer rock concert increased, even though the number of tickets sold would fall. What does this imply about the price elasticity of demand...