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Thu Feb 26, 2015 11:06 am

Probability of any event in terms of odds for and against the events.

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Thu Feb 26, 2015 8:09 am

are we given calculator in PRM exam centres

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Thu Feb 26, 2015 7:37 am

This is in reference to the Flexi Charting File . How do you link the bolean : true - false with the check box in the file so that after checking/unchecking that line/number series behaves accordingly

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Tue Feb 24, 2015 4:01 pm

Can someone please help me with the following question? Which of the following statements about the replacement decisions is least accurate? A. Any loss on the sale of old equipment is multiplied by the tax rate and is treated as...

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Mon Feb 23, 2015 3:08 pm

What is the meaning of sucession plan made for executive management by nomination committee?

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Mon Feb 23, 2015 3:04 pm

RETURN OF 3% MORE THAN ANNUAL INFLATION RATE EACH YEAR MY Qqestion This return should be relative risk objective as inflation is benchmarK stated ver here BUT IN SCHWESER IT IS GIVEN IN ABSOLUTE RISK OBJECTIVE STATED IN REAL T...

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Mon Feb 23, 2015 2:38 pm

What is the reference of Tabular voting with Confedential Voting?

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Mon Feb 23, 2015 2:22 pm

CRELATIVE RISK OBJECTIVES It is possible for institution to use return on peer portfolio such as endowment funds with a stated objective to be in top quartile of endowment funds returns, peer performance benchmark suffer from no...

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Mon Feb 23, 2015 11:37 am

Arithmetic of answer seems to be incorrect A bank expects the unexpected loss from loans to customers A & B to be $1.5m and $2.5m respectively. If the correlation between the two is 0.69, the total unexpected loss of the ban...

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Mon Feb 23, 2015 3:44 am

Q.1 What is the meaning of Capital Market Theory? Q.2 What is the meaning of Equilibrium return? Q,3 What is the meaning of Security Characteristic Line? Q.4 What is the meaning of Endowment and Foundation?

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Mon Feb 23, 2015 3:41 am

What is difference between "Weighted Average collection period" and "Average days of receivables"?

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Sat Feb 21, 2015 9:23 am

Under online document Quantitative Analysis I, Pg 51, Question 2 You are given the following information about the returns of stock P and stock Q: • Variance of return of stock P = 100.0 • Variance of return of stock Q = 225....

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Fri Feb 20, 2015 6:10 pm

A stock was purchased rs 100 and sold rs 120. calculate investor annual rate of return on a continuously compounded basis In( 120/100)= 18.23% How dis 18.23% came how to calculate dis in BA11 HOW TO CALCULATE effective annual ...

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Thu Feb 19, 2015 2:54 pm

Invetory turnover ration-cost of good sold/ average stock IF RATIO IS 16 TIMES COMPANY IS ABLE ACHIEVE SALES OF RS.16 AT AN AVERAGE STOCK LEVEL OF RE. 1 MY QUESTION wHAT DOES THIS RATIO AND SENTENCE MAENS.HOW CAN C. MAKES SALES O...

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Mon Feb 16, 2015 6:02 am

Hi , If i am using hadoop 2.2 version then please suggest me which version of pig and hive should we used.Currently I am using pig 0.11 and hive 0.14. and getting error. Thanks Ranjit kumar

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Sun Feb 15, 2015 7:36 am

I have doubt in following question bank overall loss at 1%worst case scenario is 10% of its assets of $100 million. If the cost of liabilities is 5%p.a, and return an assets 7%p.a, what is the economic capital required by the b...

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Sun Feb 15, 2015 4:49 am

hi, My Hadoop job is failing with following error 15/02/15 09:25:22 INFO mapreduce.Job: Job job_1423971188386_0003 failed with state FAILED due to: Application application_1423971188386_0003 failed 2 times due to AM Container fo...

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Fri Feb 13, 2015 10:57 am

I am not able to understand the solution to problem given below 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: 1...

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Tue Feb 10, 2015 6:02 am

Hi, I'm getting following error for running my Map-Reduce program with Hadoop version 2.2. I'm linking my Map-Reduce program with jars in following path /usr/local/hadoop/hadoop-2.2.0/share/hadoop/mapreduce/ Exception in thread...

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Mon Feb 09, 2015 5:27 pm

WHAT IS COMMISSION ON SALES AND COMMISSION ON PURCHASE IN LEVERAGE POSITION while calculating margin transactions Margin TRANSACTIONS SHARES PURCHASED- 1000 PURCHASE PRICE PER SHARE ...

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Mon Feb 09, 2015 8:15 am

can anyone please tell me about pgcfr class schedule delhi location?

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Sat Feb 07, 2015 7:13 am

I have few doubts about following 2 questions: 1. Separation Theorem suggests that: Select one: a. Portfolios held by conservative investors differ markedly from portfolios held by aggressive investors. b. Investors, conservativ...

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Thu Feb 05, 2015 4:53 am

what is unbiased voting confidential voting is favriuble or not

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Wed Feb 04, 2015 6:12 pm

Price Earnings Ratio Formula MARKET PRICE-50 EPS -10 As you can see, the Island's ratio is 10 times. This means that investors are willing to pay 10 dollars for every dollar of earnings. In other words, this stock is trading at a ...

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Wed Feb 04, 2015 3:18 pm

If two months price returns are given Caa u tell me the formula FOR I MONTH PERCENT RERUN IN PRICE WEIGHTED INDEX AND EQUAL WEIGHTED INDEX

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Wed Feb 04, 2015 1:32 pm

An equal weight index places a equal weight on the returns of all stock A $2 change in price of $20 stock has same effect on the index as 430 change in price of $300 stocks regardless of size of company what does this sentence ma...

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Sun Feb 01, 2015 11:43 am

EE bond interest should be reduced from qualified Expenses, i just want to confirm that either interest will be deducted from total qualified expenses or from threshold of $250. for ex.:- Mr. A incurred total qualified expense of ...

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Thu Jan 29, 2015 6:42 pm

stock dividend is a permanent capitalization of retained earnings to contributed capital. PLZ EXPLAIN

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Sat Jan 24, 2015 3:11 pm

How can i access the Case studies in the PRMIA website as there is a PDF lock and I am getting an error while opening the PDF LockLizard files in the PRMIA website.Please help in the matter of urgency.

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Wed Jan 21, 2015 8:04 pm

Hi !! I was wondering if I could get R- Software Lectures of Last module i.e 5_Predictive _Analytics as the commands for running Statistical Tests are give for SAS Software only. Also uptil 4 Modules we have been using only Excel...

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Tue Jan 20, 2015 8:20 pm

I downloaded R- Software and its working . However, when I try to install packages like "sandwich" , it shows following error: > install.packages("sandwich") --- Please select a CRAN mirror for use in this ...

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Mon Jan 19, 2015 9:24 pm

In 4_Predictive _Analysis, Page 105, Interpreting the Multivariate Linear Regression, we given the results as follows : A] AvgAge: - 5.560 -ve (Higher is the age, lower is the loss) B] Gender Dummy : 50.883 +ve (Average Loss fo...

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Thu Jan 15, 2015 10:28 am

when i will have ans of all my question its being so many days

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Tue Jan 13, 2015 4:20 pm

T-DISTRIBUTION As degree of freedom increases in t distribution tails becomes thinner and greater percentage away from center of distributions. Thickness of tails relative to those of Z distribution is important in hypothesis test...

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Tue Jan 13, 2015 9:24 am

SAMPLING DISTRIBUTION- It is important to recognize that sample statistic itself a random sample. Sampling distribution of sample statistic is a probability distribution of all possible sample statistics computed from a set of equ...

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Mon Jan 12, 2015 10:58 am

PURE DISCOUNT AND OTHER BONDS SOLD AT DISCOUNT TO PAR WHEN ISSUED ARE TERMED AS ORIGINAL ISSUE DISCOUNT Because the gain over an OID bonds tenor as price moves towards is par are real interest incomes. These bonds generate tax lia...

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Mon Jan 12, 2015 10:34 am

Taxation of bond income Some tax jurisdiction issue bonds at a premium to par provides a symmetric treatment ,allowing part of premium to b used to reduce taxable portion of coupon interest payments MY question How taxable portio...

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Thu Jan 08, 2015 9:24 pm

Sir , when we do copulas, we find out the joint probabilities of say loss frequency 1 and loss frequency 2, my doubt is what is the use of computing these probabilities, for Loss aggregation we have correlated frequencies and loss...

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Wed Jan 07, 2015 2:40 pm

If company sales one of its assets eg. Building, then what comes under revenue only the gain or loss on the sale or the full sale price of the building including profit or loss? We should add profit and subtract loss to reach to ...

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Wed Jan 07, 2015 2:09 pm

hiiii,,,, i want to know that how to calculate adjusted stock and fix asset for future because in calss we have given assumpstion but in real there is nothing reguarding fix asset and adjustmest stock in anual report than how to c...

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Wed Jan 07, 2015 11:39 am

Has the course material changed or will change in near future? Should I continue reading from the notes provided by Edu pristine

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Sun Jan 04, 2015 3:06 pm

In video for PRM -2 under the Finite Difference Method the Implicit,Explicit and Clark Nicholson method are unclear ...could you explain in simplfied manner.

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Sat Jan 03, 2015 10:29 am

I could not attend my hadoop classroom training classes on dec 27 and dec 28th 2014.Kindly provide me with recorded sessions to cover up the topics , Plz help . Topics were 1. introduction to HDFS 2. Understanding Pseudo cluster e...

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Fri Jan 02, 2015 2:45 pm

I have the PRiMIA handouts as well as Eduprisitne material as well.could you please suggest whether your reading material are sufficient enough to take PRM exam or I need to read huge PRM material as well.

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Wed Dec 24, 2014 4:59 pm

Financial lease-In this asset is purchased by financing loan .With this both asset and liabilities are increased by same amount Over the term of lease lessee records depreciation expenses in asset and interest expenses in liabilit...

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Wed Dec 24, 2014 1:50 pm

Difference between interest expenses on bonds and coupon payments Are interest expenses included in coupon payments

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Mon Dec 22, 2014 7:11 pm

Start with net income. Add back non-cash expenses. (Such as depreciation and amortization) Adjust for gains and losses on sales on assets. Add back losses Subtract out gains Account for changes in all non-cash current assets. Acco...

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Sun Dec 21, 2014 10:32 am

Higher spread between corporate bond and treasury bod are beneficial or lower spread PLZ EXPLAIN THE F ADVANTAGE AND DISADVANTAGE OF HIGH AND LOW SPRAED

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Sun Dec 21, 2014 9:40 am

TERM STRUCTURE OF YIELD VOLATILITY SOURCE OF QUESTION- SCHWESER BOOK 5 FIXED INCOME RISK AND RETURN PAGE 96 It could b the case the shorter term bonds has more price volatility than a longer term bonds with a greater duration beca...

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Sun Dec 21, 2014 9:26 am

Difference between money duration and price value of basis points??????? How shorter term bonds has high yield voltalituy

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Sun Dec 21, 2014 6:10 am

in schweser it is given that modified duration is a linear extimate of relation between bond price and ytm?????? What does linear extimate means nd curvlinear means What is an exact difference between modified duration and approxi...

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Sun Dec 21, 2014 6:02 am

can u expalin the difference between positive and negative duration

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Sat Dec 20, 2014 3:01 pm

A 1000 face value 5 year bond annual coupon 5% Fully amortizing loan PMT= 230.97 230.97 230.97 230.97 230.97 Principal remainig- 819.0 629.01 429.49 219.99 0 How did they calculate PMT and principal amount in fully amortising bon...

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Sat Dec 20, 2014 2:59 pm

Assume a city issues a $5 million bond to build a new arena. The bond pays 8% semiannual interest and will mature in 10 years. Current interest rates are 9%. What is the present value of this bond and what will the bond's value be...

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Sat Dec 20, 2014 6:56 am

A 1000 face value 5 year bond annual coupon 5% Fully amortizing loan PMT= 230.97 230.97 230.97 230.97 230.97 Principal remainig- 819.0 629.01 429.4...

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Fri Dec 19, 2014 5:53 pm

FLOATING RATE DEBT purchasing floating ate debt is attractive to some institutions that have variable rate source of funds (liabilities) such as banks.This allows these institutions to avoid balance sheet effects of interest rate...

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Thu Dec 18, 2014 2:46 pm

Today an investor purchases a $1,000 face value, 10%, 20-year, semi-annual bond at a discount for $900. He wants to sell the bond in 6 years when he estimates the yields will be 9%. What is the estimate of the future price? A) $1...

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Thu Dec 18, 2014 2:25 pm

Assume a city issues a $5 million bond to build a new arena. The bond pays 8% semiannual interest and will mature in 10 years. Current interest rates are 9%. What is the present value of this bond and what will the bond's value be...

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Thu Dec 18, 2014 2:24 pm

Interest rates have fallen over the seven years since a $1,000 par, 10-year bond was issued with a coupon of 7%. What is the present value of this bond if the required rate of return is currently four and one-half percent? (For si...

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Wed Dec 17, 2014 8:33 pm

In case a new capital asset is purchased, extra working capital in required. So there is cash outflow. But why this same extra working capital will be treated as inflow at the end. My point is any extra working capital which is re...

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Wed Dec 17, 2014 8:01 pm

Basic Principle of Capital Budgeting- Financing Costs ( Like Interest Rate) are not considered as a part of the cash flows because they already considered in project's hurdle rate. Need more clear explanation with example. Exam...

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Wed Dec 17, 2014 7:00 pm

Scheswer book 5 level 1 Future contract Termination of contract Sales of future contract ends the exposure to future price fluctuations on the first contract. What does this means?/

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Wed Dec 17, 2014 5:31 pm

In schweser Page 166 book 5 Future contract characteristics Standardization- exchange can also set the minimum price fluctuations which is called tick size Maximum price limits expands during the period of high volatility and ar...

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Mon Dec 15, 2014 5:40 pm

Expenses are calculate to generate revenue.Expenses decrease economic benefit due to outflow during accounting period or depletion of asset or occurrence of liabilities that results in decrease in equity other than those relating ...

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Sun Dec 14, 2014 3:07 pm

A disclosure that is required for public companies is the likely impact of implementing recently issued accounting standards. Management can discuss the impact of adopting the standard, conclude that the standard does not apply or...

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Sat Dec 13, 2014 8:38 am

COMMODITY FUTURE CONTRACTS REFLECTS RISK FREE RATE OF RETURN,CHANGE IN FUTURE PRICE AND ROLL Furthermore CONTRACT MATURES AND MUST B REPALCED OVERTIME BY OTHER CONTRACT THE RETURN ON COMMODITY FUTURE DIFFERS FROM RETURN ON LONG PO...

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Sat Dec 13, 2014 8:34 am

Hedge fund are largely unregulated and are not required to report their performance. Hedge funds that have reported in past byt have recently had poor returnns may stop performing their performance this result in upward bias i ind...

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Fri Dec 12, 2014 10:53 am

What would b return on commodities and its volatility Higher or Lower

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Fri Dec 12, 2014 10:51 am

Return on commodity over time have been lower than return on global stocks or bonds????? How return are lower for commodities?/ To the extent commodity price move with inflation rate real return would b 0 how real return would b ...

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Sat Dec 06, 2014 12:03 pm

And what si the difference between marketable securities and a/c recviables?

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Sat Dec 06, 2014 11:33 am

Sunk cost is not a part of the incremental cash flows..But should it be added to initial cost?And how do we treat floating cost?

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Wed Dec 03, 2014 7:47 am

Formulas to convert bank discount yield to an holding period yield and holding period yield to an money market yield

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Wed Dec 03, 2014 7:38 am

Efective annual yield on an investment is 8%.What is the yield on a bond equivalent basis?/ QUESTION How to convert annual yield in semi annual???????? 3 month loan has a holding period yield of 2%? What is the yield on bond equ...

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Tue Dec 02, 2014 1:52 pm

pv=-10000 i/y=5 n=20 cpt.pmt=802 i have to cpmpute pmt and the above info is stated in the book but when I am trying it on the calculator i am getting 812 and the calculation is done in the end mode Please help

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Mon Dec 01, 2014 11:16 am

wen i can have answers of all my doubts... No answers from s many dayz

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Sat Nov 29, 2014 6:36 am

Can opportunity cost can b considered as negative externality

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Fri Nov 28, 2014 5:50 pm

Degree of operating Leverage SUppose there are two company A and B Company A's Initial sales-50000 pRICE-4 Variable cost-3 Degree of operating leverage- 50000(4-3)/ 50000(4-3)-40000= 50000/10000 DOL- 5 It means for every one per...

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Thu Nov 27, 2014 4:44 pm

1. how to decide a seed value of a parameter while implementing MLE ? 2. how to calculate MME for weibull distribution ? 3. How to calculate GPD if I do not want to use custom function ?

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Thu Nov 27, 2014 1:32 pm

While calculating NPV when would present value be 0 or 1 and also wen will b future value 1 or 0 Under which case present value would b 0 and in which case present value would b 1? Under which case futuret value would b 0 and in w...

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Thu Nov 27, 2014 9:28 am

Difference between bond equivalent yield and discount basis yield and money market yield

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Thu Nov 27, 2014 9:03 am

Difference between bond equivalent yield and discount basis yield

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Thu Nov 27, 2014 8:55 am

Liquidating Dividend- It is treated as return on capital and amount over the investors tax basis are treated as capital gains What does it means? Plz explain tax purpose o liquidating dividend?????????

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Thu Nov 27, 2014 8:53 am

As company pays dividend from their reserved.... How it will effect book vale of company. Difference between book vale and shareholders eqity

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Thu Nov 27, 2014 8:52 am

As we know that npv profiles intersect at crossover rate where npv of two project are equal.This intersection could take place because of timing difference How because of difference in time will make two projects NPV equal????

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Thu Nov 27, 2014 8:51 am

in schweser it is given when company pays stock dividend from reserves it will decrease reserves and increase share capital. How share capital will increases as we know shareholders do not provide capital when they get stock divid...

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Sun Nov 23, 2014 6:09 am

explain book vale of company and market value of company in reverse stock split as well book value per share and market vale per share in reverse stock split

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Sun Nov 23, 2014 4:49 am

SHARE REPURCHASE As in the corporate finance slide it is given while repurchasing total book vale per share changes but market value per share does not change Can u explain plz how there wold b effect on book vale but not on mar...

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Sat Nov 22, 2014 8:03 pm

Do company pays dividend to shareholder after stock split and reverse stock split

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Sat Nov 22, 2014 6:40 pm

In schweser it is given when company pays stock dividend from reserves it will decrease reserves and increase share capital. How share capital will increases as we know shareholders do not provide capital when they get stock div...

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Sat Nov 22, 2014 6:07 pm

As company pays dividend from their reserved.... How it will effect book vale of company. Difference between book vale and shareholders eqity

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Sat Nov 22, 2014 5:37 pm

As company pays special dividend in addition of regular dividend. Do shareholder pays extra tax for special dividend they gets

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Sat Nov 22, 2014 5:22 pm

Liquidating Dividend- It is treated as return on capital and amount over the investors tax basis are treated as capital gains What does it means? Plz explain tax purpose o liquidating dividend?????????

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Sat Nov 22, 2014 9:52 am

As we know that npv profiles intersect at crossover rate where npv of two project are equal.This intersection could take place because of timing difference How because of difference in time will make two projects NPV equal????

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436 |

Sat Nov 22, 2014 8:54 am

As we know cash flow in NPV are reinvested at market rate. It is assumed that project cash flow could be used to reduce firms requirement this will reduce cost of capital How cost of capital will reduce by decreasing firms capit...

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382 |

Fri Nov 21, 2014 6:49 pm

Q-1 Firm with limited access to additional liquidity often impose a maximum payback period then use a measure of profitability such as npv and irr to evaluate project that satisfy maximum payback period constraints What does this...

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Thu Nov 20, 2014 8:25 am

So if I understand correctly, when the coupon rate is fixed then there would be no difference between coupon rate and YTM?? It's only when bonds are issued on floating rates then there would be difference?

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Tue Nov 18, 2014 7:16 pm

If the foreign exchange value of domestic currency falls relative to the US dollar, the monetary authority must use foreign reserves to purchase their domestic currency in order to reach target exchange rate. Please explain how is...

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Tue Nov 18, 2014 7:15 pm

Who are bond vigilates ? How do they reflect problem in transmission mechanism ?

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201 |

Tue Nov 18, 2014 6:07 am

Do we DEDUCT or ADD taxes paid or receivable while calculating CFO IN INDIRECT METHOD? Can u describe tax treatment in indirect method while calculating CFO?????/

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Tue Nov 18, 2014 6:03 am

DESCRIBE HOW CASH LOW LINKED TO INCOME STATEMENT AND BALANCE SHEET when revenue( sales) exceeds cash collection firm sold item on credit and account receivable( an asset) increase. The opposite occurs when customer repay more on ...

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166 |

Tue Nov 18, 2014 5:44 am

A company recorded rs. 200000 of goodwill in acquisition of competitor. Acquisition would provide benefits for 10 years. Will goodwill be amortised over 10 years ?

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Tue Nov 18, 2014 5:25 am

How free cash flow to the firm and equity are calculated under ifrs ?????/

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Mon Nov 17, 2014 4:18 am

Please could someone advise the differnece between coupon rate and yield to maturity on debt for in refrence to cost of debt? Regards Hemant 9891848532

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Sun Nov 16, 2014 8:50 pm

Goodwill is created in purchase acquisition What does it mean? Since goodwill is no amortized but must be tested for impairments at least annually. If impaired goodwill is recognized and loss is recognized in the income statement...

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160 |

Sun Nov 16, 2014 2:51 pm

If the foreign exchange value of domestic currency falls relative to the US dollar, the monetary authority must use foreign reserves to purchase their domestic currency in order to reach target exchange rate. Please explain how is...

1 |
131 |

Sun Nov 16, 2014 2:41 pm

Who are bond market vigilantes ? How do they reflect problem in the monetary transmission mechanism ?

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157 |

Sun Nov 16, 2014 2:30 pm

Difference between comprehensive income and accumulated comprehensive income?

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107 |

Sun Nov 16, 2014 1:45 pm

Preferred stock Preferred stock that calls for mandatory redemption in fixed amount is considered as financial liability. Why they are considered as financial liability???????????

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130 |

Sun Nov 16, 2014 1:33 pm

SHAREHOLDER'S equity PAR VALUE OF COMMON STOCK IS STATED OR LEGAL VALUE. IT HAS NO RELATION WITH FACE VALUE. SOMETIMES COMPANIES ISSUE SHARES WITH NO PAR VALUE Q-1 Difference between par value and face value? Q-2 Why companies i...

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129 |

Thu Nov 13, 2014 5:23 pm

Why is it that unrealised gains/losses of "securities held for trading" reported in the Income statement but for "securities available for sale" it is reported in other comprehensive income ?

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Wed Nov 12, 2014 3:28 pm

What is a LIFO reserve ? If Current asset is $10 million Current liab is $ 5 million Lifo reserve 2013 $ 500000 Lifo reserve 2014 $ 700000 Why is lifo reserve of 2014 added to current asset to determine the adjusted current ratio...

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154 |

Wed Nov 12, 2014 6:26 am

Meredith Suresh, an analyst with Torch Electric, is evaluating two capital projects.Â Project 1 has an initial cost of $200,000 and is expected to produce cash flows of $55,000 per year for the next eight years.Â Project 2 has...

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140 |

Tue Nov 11, 2014 9:45 pm

Which of the following statements about the internal rate of return (IRR) for a project with the following cash flow pattern is CORRECT? Year 0: -$ 2,000 Year 1: $10,000 Year 2: -$ 10,000 A) It has two IRRs of approximately ...

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146 |

Tue Nov 11, 2014 11:15 am

If a bank retains the equity (junior) tranche of a securitization where the notional of the tranche is $10 million and the tranche has a long-term “B-” credit rating, what is the capital charge under the standardized approach ...

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138 |

Tue Nov 11, 2014 6:08 am

chandniwadhwani92 Tue Nov 11, 2014 6:02 am icome taxes Finacial Reportif for 4 years YEAR1 YEAR2 YEAR 3 YEAR4 REVENUE 50000 50000 50000 50000 DE...

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Tue Nov 11, 2014 6:02 am

Finacial Reportif for 4 years YEAR1 YEAR2 YEAR 3 YEAR4 REVEUE 500000 500000 500000 500000 DEP 30000 ...

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123 |

Sun Nov 09, 2014 1:40 pm

Sorry i cant past the question in here bcos of pic formate -If possible can you refer My doubt is can you elaborate how to calculate time weighted rate of return how in period 2 450 came why it divided by 3100..please help me

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Fri Nov 07, 2014 4:21 am

Which of the following is most likely to be the money duration of newly issued 360-day eurocommercial paper? A) 360 days. B) 4.3%. C) 25 million.

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163 |

Thu Nov 06, 2014 2:27 pm

The capital charge for market risk for banks subject to the market risk rule is: Select one: a. Three times the calculated VaR b. The average VaR over the last 50 days c. The higher of the previous day's VaR, or 3 times the averag...

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169 |

Thu Nov 06, 2014 7:08 am

can anybody explain CCDS to me... to my understanding its like CDS but it cover large type of derivative and it replaces any one which is defaulf..please correct me if i am wrong

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Thu Nov 06, 2014 5:34 am

Could you please me the concept of Fixed Capital Investment while valuating a company? Is it just increase in CAPEX or increase in CAPEX and CWIP? The template provided for Coal India has calculated just CAPEX while the template ...

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140 |

Wed Nov 05, 2014 5:29 pm

For a portfolio of derivative contracts, Analyst Jane wants to estimate her firm's counterparty exposure on a future target date, T(1), which is one year forward. For convenience, she assumes the future value of the portfolio at t...

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154 |

Wed Nov 05, 2014 5:26 pm

Acme Bank (A) is the floating-rate payer in an interest rate swap. Big Credit Corporation (B) is the counterparty who is the fixed-rate payer. Acme pays LIBOR in exchange for a fixed rate of 4.0% per annum. The credit valuation ad...

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Wed Nov 05, 2014 3:20 am

A disadvantage of G-spreads and I-spreads is that they are theoretically correct only if the spot yield curve is: A) upward sloping. B) downward sloping. C) flat. why G-spreads and I-spreads are accurate only when spo...

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Tue Nov 04, 2014 7:14 pm

As we know shareholders equity formula - share capital+retained earning-treasury shares HOW COMPANY CALCULATE RETAINED EARNING IN THIS

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126 |

Tue Nov 04, 2014 6:18 pm

EXPLAIN THE CONCEPT OF INCREAING ROE WHEN THERE IS DECREASE IN BOOK VALUE

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113 |

Tue Nov 04, 2014 5:50 pm

An increase in share price will decrease expected return other thing being equal. plz explain it Intrinsic value of firms share is the discounted preset value of its future cash flows an increase in required return used to discoun...

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Tue Nov 04, 2014 5:17 pm

1-Difference between book value per share and price to book ratio??? 2- As we know book value increases when net income increases But in schswer it is given ROE increase when when book value is decreasing more rapidly than net inc...

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148 |

Mon Nov 03, 2014 6:45 pm

The number of days a particular stock increases in a given five-day period is uniformly distributed between zero and five inclusive. In a given five-day trading week, what is the probability that the stock will increase exactly th...

4 |
187 |

Mon Nov 03, 2014 3:58 pm

The security on which the ADR is based in American deposit share which trades in firm domestic market What does this sentence meas?/// Can u briefly explain American deposit share????? Some firms i AdR are registed in SEC BUT SO...

1 |
137 |

Mon Nov 03, 2014 3:54 pm

1.Depositary recipts It represent ownership i foreign firms ad are traded in market of other countries what would b the currency denomination ???/ For ex- If Indian company is listed in japan.here currency denomination would b in ...

1 |
101 |

Mon Nov 03, 2014 8:35 am

In collable common shares it is given it allows the firm to reduce its dividend payment without changing its per share dividend How per share dividend wont b change when dividend payment is reudced

2 |
211 |

Mon Nov 03, 2014 6:08 am

In market risk what is MTM and how MTM record losses when yield increases above at par by 10% and vice versa. What is the relation

1 |
114 |

Mon Nov 03, 2014 5:51 am

how to calculate yield as per discount basis and add on basis.and what is the formula for PV calculation in both the methods?

1 |
166 |

Sun Nov 02, 2014 6:40 pm

Put option on the shares benefits the shareholder because it effectively place a floor under share value. What does it mean placing a floor value

1 |
147 |

Sun Nov 02, 2014 6:31 pm

In schswer pg 260 it is given if holder has 30% of firm share could choose 3 of 10 directors in cumulative voting but could not elect any director in statutory voting why cant he elect in statutory????//

1 |
117 |

Sun Nov 02, 2014 6:29 pm

explain statutory voting with example. For example if shareholder gas 100 share and 3 directors to b elected then in statutory how shares would be divided to elect directors. Can he proportionately divide his share to all the 3 ...

1 |
141 |

Sun Nov 02, 2014 12:28 pm

I had little difficulty understanding the following.Can somebody please explain. 1.Efficient Frontier 2.Capital Allocation Line 3.Security Market Line

1 |
159 |

Sun Nov 02, 2014 10:11 am

FIXED INCOME INDICES Large UNIVERSE OF SECURITY= As unlike stocks bond matures and must b replaced with fixed income indexes.As a result turnover is high in fixes income index.. What does this sentence means?

1 |
110 |

Sun Nov 02, 2014 10:06 am

What is multi market index with fundamental weighting and style index?? In multi market index it is given it prevents a country with previously high stock returns from being over weighted in multi market index what does this sent...

1 |
133 |

Sun Nov 02, 2014 8:01 am

Floor adjusted market capitalization weighted index Here proportion are based on value of each firms share that are available to investors to the total market value of the share of index stock that are available to investors Expla...

1 |
108 |

Sun Nov 02, 2014 7:57 am

In market capitalization weighted index A market capitalization weighted index can b matched with a portfolio in which the vale of each security position in the portfolio is the same proportion of the total value as the proportion...

1 |
118 |

Sat Nov 01, 2014 6:01 pm

Price weighted index In schswer it is given A portfolio that has an equal number of share in each of constituent stocks will have price return same that will match the returns of price weighted index... Here equal number of share...

1 |
108 |

Sat Nov 01, 2014 4:50 pm

For a stock, which of the following is least likely a random variable? Its: A) stock symbol. B) current ratio. C) most recent closing price. pls help with appropriate explanation. Regards, Nidhi

2 |
164 |

Sat Nov 01, 2014 4:03 pm

Under Malz's single-factor credit model, a(T) = beta*m + SQRT(1-beta^2)*epsilon, a firm has a beta of 0.40 and an unconditional default probability of 3.0%. If we enter a modest economic downturn, such that the value of (m) = -1.0...

1 |
118 |

Sat Nov 01, 2014 11:32 am

What is the VAR CONFIDENCE INTERVAL for three types of risk IS MKT=95 and CR and OR =99 am i correct???

2 |
253 |

Sat Nov 01, 2014 8:27 am

I cant get a clear hang of it..to my understanding point upfront is an amt paid at the beginning of the contract..like an initial margin.. is my understanding correct or am i missing something

1 |
99 |

Sat Nov 01, 2014 7:40 am

Do we need to pass all 10 subjects to clear CFA Level 1. I know Ethics is important. Is there any subject in which we can get below 50% and still clear CFA level 1. What is the minimum passing score for all subjects? Also is ther...

1 |
195 |

Fri Oct 31, 2014 8:09 am

I wanted to know is it wise to opt for PRM III paper as first exam . Also, pls let me know does the online recordings / videos that has been provided is good enough to prepare for the exam as I am yet to enroll myself with the PRI...

1 |
155 |

Thu Oct 30, 2014 7:01 pm

Sam, an analyst at Alpha Catalyst fund, finds out the following statistics based on historical data. Only 20% of subsidiaries of Alpha Catalyst are in the ‘Elite list’ published by their newsletter. The rest of subsidiaries ar...

1 |
234 |

1 |
140 |

Thu Oct 30, 2014 3:41 pm

Consider a simple two firm credit portfolio with the following probabilities given: Firm 1 defaults over time horizon t, f1= 0.30 Firm 2 defaults over time horizon t, f2= 0.25 Joint probability that both firms will default over ti...

1 |
106 |

Thu Oct 30, 2014 3:33 pm

anbu.edu Sat Oct 18, 2014 1:46 pm In the Merton model, with only debt and equity in the capital structure, the value of debt will increase in value if the: I. interest rate declines. II. volatility of firm value increases. III. va...

3 |
154 |

Thu Oct 30, 2014 3:23 pm

For a bank, what should be the economic capital so that we can avert 95% of the time the unexpected loss? Assume the unexpected loss follows the function F(x)= e^(( x6)^ 2/36) . Select one: a. 15 million $ b. 11 Million $ c. 12 Mi...

1 |
103 |

Thu Oct 30, 2014 8:07 am

Any body here, who has done cpa or pursuing CPA, lets have discussion on this. How is FM helpful in CPA.

1 |
115 |

Thu Oct 30, 2014 7:13 am

Zero variance portfolio can b constructed if the correlation coefficient between asset is -1. Can u explain this sentence with diagram

3 |
196 |

Tue Oct 28, 2014 10:08 am

Airthemetic mean return has statistical property of being an unbiased estimator of the true means of the underlying distribution of returns.. What does this sentence means?????/

1 |
100 |

Tue Oct 28, 2014 9:23 am

Reason for less capital gains liability in ETFS as compared to open ended funds????

3 |
148 |

Tue Oct 28, 2014 9:10 am

Q=1 Describe Tax implication of CLOSED ENDED FUNDS,OPEN ENDED FUNDS AND ETFS? Q=2 Do closed ended funds charge brokerage fees or management fees?? Q=3 Although closed ended funds are sold out in secondary market but they are in...

3 |
173 |

Mon Oct 27, 2014 11:05 pm

Given the 1 year transition matrix below,what is the probability that a company that is currently B rated default over will default over a given 2-year period. Initial period state Next period State ...

1 |
119 |

Mon Oct 27, 2014 3:01 pm

For two comparable US callable corporate bonds, which have the same credit rating, maturity and liquidity rate, the following data is available – A B nominal spread ...

1 |
105 |

Mon Oct 27, 2014 2:59 pm

In scheswer it is given modern portfolio results in equilibrium expected returns for securities and portfolio that are linear function of each security or portfolio market risk. What does equilibrium expected return and linear fu...

1 |
116 |

2 |
121 |

Mon Oct 27, 2014 2:13 pm

How diversification decrease the volatility of return in portfolio?????????/

1 |
108 |

Sun Oct 26, 2014 12:57 pm

Q5 of common probability distributions CFA institue book pg 529 : Should the probability of success be taken as "what was observed, i.e. 4/7" or "what is claimed by the newsletter i.e. 70 percent" ? And why ?

1 |
139 |

Sat Oct 25, 2014 5:56 pm

In the Internal Models Approach, an exception occurs when an actual P&L results exceeds the VaR forecast. How many times may this occur before the model falls into the penalty "Red Zone"? Select one: a. 4 times a yea...

1 |
109 |

Sat Oct 25, 2014 5:41 pm

Which of the following is NOT a source of model risk? Select one: a. Minimal rounding errors from algorithms. b. Nonsynchronous data. c. Widespread implementation of models across business units. d. Failure to recalibrate models ...

1 |
105 |

Fri Oct 24, 2014 8:11 am

67 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 estimat...

1 |
121 |

Fri Oct 24, 2014 8:00 am

A hedge fund has invested fund worth USD 1 Million in shares .The weekly return of the share has volatility of 1%. The bid ask Spread is averaged at 0.20. What is 95% liquidity adjusted daily VaR for this position using constant s...

2 |
136 |

Thu Oct 23, 2014 6:31 pm

Which of these statements is most closely associated with ‘Ring Fencing’? Select one: a. It is useful when a high quality firm is looking to enter into a low quality project b. A subsidiary can be allowed to gain a higher cred...

1 |
123 |

Thu Oct 23, 2014 11:04 am

Which of the following is the transaction cost? Select one: a. Cost of moving Portfolio allocation. b. Cost of adjusting active risk aversion. c. Cost of active portfolio management d. None of these. Feedback The correct answer is...

1 |
119 |

Thu Oct 23, 2014 11:03 am

Which of the following is similar to Sharpe ratio: Select one: a. M2 measure b. Treynor measure c. Jensen’s alpha d. None of above Feedback The correct answer is B. Treynor measure is similar to Sharpe ratio, It uses beta instea...

1 |
116 |

Wed Oct 22, 2014 5:59 pm

Sam, an analyst at Alpha Catalyst fund, finds out the following statistics based on historical data. Only 20% of subsidiaries of Alpha Catalyst are in the ‘Elite list’ published by their newsletter. The rest of subsidiaries ar...

1 |
99 |

Tue Oct 21, 2014 8:35 pm

Stock index future A long stock index futures position o s$p index 500 futures at 1051 would show a gain of 1750 in traders account if he index were 1058 at settlement date (250*7=1750). Why did they multiplied with ?

1 |
114 |

Tue Oct 21, 2014 8:31 pm

What does this means?? Treasury bills are quoted as percent and fraction of 1%(measured in 1/32) of face value

2 |
134 |

Tue Oct 21, 2014 7:00 pm

scheswer 166 page What does this sentence means? The margin percentage, The percentage of security value that is owned, vary over the time ad must be maintained at some minimum percentage of market value

1 |
127 |

Tue Oct 21, 2014 6:51 pm

In scheswer page 167 it is given In security market cash deposited is paid to the seller of the security.with the balance of the purchase provide by the broker. This is why unpaid balance is a loan, with interest charged on buyer...

1 |
107 |

Mon Oct 20, 2014 12:51 pm

Acme Bank has entered into two trades with its counterparty and wants to analyze the potential benefits of netting. To do this, it will model several scenarios to produce mark-tomarket (MtM) values for each trade. Their model cont...

1 |
129 |

Sun Oct 19, 2014 10:42 am

Gregory gives the following approximation for expected exposure (EE) when the mark-tomarket (MtM) is characterized by a normal distribution with zero mean:Assume an exposure is normally distributed with zero mean and volatility of...

1 |
134 |

Fri Oct 17, 2014 3:34 pm

Can anyone explain in excel sheet how exposure at default is calculated for collateral's, equity, derivative and OTC trades like swaps and bonds.

1 |
190 |

Fri Oct 17, 2014 10:09 am

In which of the following positions is the value at risk (VaR) most likely to exceed the liquidity at risk (LaR)? a) Short-term exposure on a portfolio of long European-style options b) Long-term exposure on a portfolio of short E...

1 |
117 |

Fri Oct 17, 2014 5:02 am

Can anyone share excel sheet of calculation of VAR for any asset class by using Monte Carlo Simulation Method.

4 |
206 |

Thu Oct 16, 2014 4:54 pm

Why proceeding in the question below are in CFF and not in CFO Nomad Company issued $1,000,000 face value 2-year zero coupon bonds on December 31, 20X2 to yield 8% interest. Bond proceeds were $857,339. In 20X3 Nomad recorded in...

1 |
155 |

Thu Oct 16, 2014 12:02 pm

I want to know how to convert discrete variable into continuous variable correctly and secondly will it be good to convert for regression model or any other model. what will be the effect on model? if someone can correctly explai...

1 |
142 |

Wed Oct 15, 2014 6:05 pm

In the Merton model, with only debt and equity in the capital structure, the value of debt will decrease and the value of equity will increase if the: I. interest rate increases. II. volatility of firm value increases. III. value ...

3 |
178 |

Wed Oct 15, 2014 12:50 pm

In schsewer it is given Future contract are said to have zero value at the tym of entering into the contarct How it is zero value? Bcoz we know when we enter into a contract we share some part of intial margin

1 |
140 |

Tue Oct 14, 2014 7:17 pm

Payment to the Long at Expiry= Notional*(Rate at Settlement - FRA Rate) (days/360)/1 (Rate at Settlement days/360) In this rate at settlement would be T9 OR T3 If at T9= 4% T6= 6% T1= 5% FRA RATE IS 5.5%

1 |
138 |

Tue Oct 14, 2014 6:32 pm

In forward rate agreement at T1 when buyer asked for loan 3 months from now for 6 months at 5,5% At ti libor is 5% but at t3 libor increases to 6% In this case how to calculate profit for long position at T9 when at T9 libor is ...

1 |
137 |

Tue Oct 14, 2014 6:30 pm

In forward rate agreement at T1 when buyer asked for loan 3 months from now for 6 months at 5,5% At ti libor is 5% but at t3 libor increases to 6% In this case how to calculate profit for long position at T9 when at T9 libor is ...

1 |
131 |

Mon Oct 13, 2014 3:14 am

The value of the covered call is value of the underlying plus the value of short call. In case the short call is exercised, the asset will have to be delivered , then why do we add the value of the underlying in determining the va...

1 |
154 |

Sun Oct 12, 2014 3:29 pm

If there is a cash flow on underlying asset, why is its present value subtracted from the price of the underlying in finding out the lower bounds ... ?

1 |
158 |

Sun Oct 12, 2014 1:44 pm

Lower bound for american call : Max(0, S-X/(1+r)^t) The doubt is that american option can be exercised immediately, then why are we discounting X ? Why is it simply not S-X ?

1 |
147 |

Sun Oct 12, 2014 11:02 am

What if the Company Handbook does not provide any information about the amount up to which the gifts can be accepted. Then if the price of gift is too low like Rs10. Then do we inform the supervisor before accepting the gift and w...

1 |
150 |

Sun Oct 12, 2014 7:40 am

Difference between annualized effective yield and annualized add on yield

1 |
160 |

Sun Oct 12, 2014 7:37 am

Difference between equivalent add on yield and effective add on yield. Plz clear dis doubt with example What is difference between bond equivalent yield and bond annualized yield

1 |
160 |

1 |
361 |

Tue Oct 07, 2014 5:54 pm

Wat does this means??????? Money duration of per 100 of bonds par value

3 |
377 |

Tue Oct 07, 2014 3:47 pm

In schweser it is given betwwen coupon dates Maclauy duration of bond decreases with passage of time and goes back significantly at each coupon dates what does this line means

1 |
298 |

Tue Oct 07, 2014 3:23 pm

Difference between modified amnd nacmacaulay duration

1 |
319 |

Tue Oct 07, 2014 3:18 pm

In schweser it is given that modified duration is a linear extimate of relation between bond price and ytm?????? What does linear extimate means? What is an exact difference between modified duration and approximate modified dura...

1 |
326 |

Mon Oct 06, 2014 6:04 pm

Principal-only strips are: A) sold at par. B) sold at a considerable discount to par. C) sold at a considerable premium to par. D) could be sold at a discount or a premium, depending on economic conditions. Your answer: C was inco...

1 |
285 |

Mon Oct 06, 2014 5:17 pm

COUPON PAYMENT ARE REINVESTED AT MARKET RATE OR YTM

1 |
289 |

Mon Oct 06, 2014 8:00 am

What is amortization of premium and discount???????

1 |
270 |

Mon Oct 06, 2014 7:59 am

ABC corp is quoted with a YTM of 4% on a semi-annual bond basis. What yields should be used to compare it with a quarterly pay bond and an annual pay bond. Concept Not getting. How to solve?????? 1 + YTM1 / n ) ^ n = (1 + Y...

3 |
298 |

Sat Oct 04, 2014 4:22 am

Which of the following sources of model risk results from making a mistake in implementing the model? I. Implementation risk. II. Calibration error. III. Programming errors. IV. Data problems. A) I, II, and III only. B) I, III, an...

1 |
278 |

Sat Oct 04, 2014 4:20 am

Which of the following sources of model risk suggest a poor match of the model to the risk? I. Incorrect model specification. II. Incorrect model application. III. Implementation risk. IV. Programming errors. A) I and II only. B) ...

1 |
251 |

Thu Oct 02, 2014 7:42 am

Which of the following statements does NOT adequately describe economic capital? I. It is always less than regulatory capital. II. It differs depending on the type of borrower, independent of borrower risk. III. It must be conside...

1 |
291 |

Mon Sep 29, 2014 10:38 am

Hi, Please suggest which formula should be used. Example if In Time : 8:10 IST Out Time: 18:20 IST Shift Timing : 9:00 Hrs Formula We can use: =Mod(Out Time-In Time,1) but it gives only positive Hrs means if a person have more t...

1 |
294 |

Tue Sep 23, 2014 4:08 am

My another query is that if we have two columns i.e. Number Column 1 - 10X20 Column 2 - Question: Calculation in column 2 should be 200, means 'X' convert in to '*' Regards, Shishir

1 |
346 |

Tue Sep 23, 2014 4:02 am

how i convert numbers in to word in excel. Exp: 51,48,241.00 this amount if i have to write in words i.e. fifty one lakh forty eight thousand two hundred forty one only Please suggest. Regards, Shishir

3 |
375 |

Sat Sep 20, 2014 2:07 pm

Hello, As the exam is coming near, I would like to know which topic is important in FRM level 2. There are 75 topics for 80 questions, it would be a great help if someone can guide me to important topics so that I can prioritize m...

1 |
326 |

Fri Sep 19, 2014 4:36 am

A global macro hedge fund has a large position in natural gas contracts. The fund manager has calculated the 1- day value at risk (VaR) of the position. However, given the magnitude of the position it is most likely that any liqui...

1 |
314 |

Thu Sep 18, 2014 12:50 am

Dear Forum, Need some clarification regarding duration. (A) Macaulay Duration Macaulay duration measures the average time that would be taken to receive the cashflows from the invested bond. It is the weighted average term to ...

2 |
429 |

Wed Sep 17, 2014 8:03 am

Which of the following statements about economic capital is (are) TRUE? I. The economic capital system provides an appropriate level of capital to meet most potential disasters. II. The economic capital system ensures that the fir...

1 |
303 |

Tue Sep 16, 2014 7:24 am

Using the single factor model, a firm’s conditional default distribution is calculated with mean and standard deviation equal to -0.438 and 0.683 respectively. What is the market return for that firm? Select one: a. 0.6 b. -0.6 ...

1 |
353 |

Tue Sep 16, 2014 7:23 am

Which of these statements is most closely associated with ‘Ring Fencing’? Select one: a. It is useful when a high quality firm is looking to enter into a low quality project b. A subsidiary can be allowed to gain a higher cred...

1 |
346 |

Tue Sep 16, 2014 5:51 am

12)Which of the following is not a termination provision Select one: a. Termination events b. Reset agreement c. Trade compression d. Multilateral netting Can C also be right

1 |
352 |

Thu Sep 11, 2014 3:08 pm

Which of the following is NOT an example of overcollateralization as an internal credit enhancement for securitization? I. Direct equity issue. II. Holdback. III. Cash collateral account. IV. Excess spread. A) IV only. B) I only. ...

1 |
347 |

Tue Sep 09, 2014 11:21 am

123.4 Assume a protection seller enters into a senior basket CDS, which in addition to covering the upper 40% in notional ($20 million) has an aggregate threshold of $10.0 million such that no payouts are triggered until the thres...

1 |
456 |

Mon Sep 08, 2014 11:37 am

Credit value at risk (VaR) incorporates potential losses at a future date at a given probability. Credit VaR is typically defined in terms of unexpected loss as: A) the worst-case portfolio loss at a given confidence level over a ...

1 |
419 |

Mon Sep 08, 2014 6:39 am

Which of the following statements regarding principal-only (PO) and interest-only (IO) strips is (are) CORRECT? I. The IO price is positively related to mortgage rates at low current rates. II. The IO exhibits some negative convex...

1 |
413 |

Mon Sep 08, 2014 6:28 am

Principal-only strips are: A) sold at par. B) sold at a considerable discount to par. C) sold at a considerable premium to par. D) could be sold at a discount or a premium, depending on economic conditions. Your answer: The corre...

1 |
412 |

Sat Sep 06, 2014 6:58 pm

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 Gaussia...

0 |
415 |

2 |
432 |

1 |
498 |

Mon Sep 01, 2014 11:28 am

While going through the questions at the end of each reading, i found some questions aiming to test the exact wordings of the reading . Are the main exams too like that ?

1 |
478 |

Mon Sep 01, 2014 11:26 am

Should we start practicing the questions only once we are absolutely thorough with the readings ?

1 |
472 |

Sat Aug 23, 2014 7:47 pm

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 |
554 |

Sat Aug 23, 2014 7:33 pm

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 |
527 |

Thu Aug 21, 2014 8:49 am

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 |
543 |

Thu Aug 21, 2014 8:45 am

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 |
523 |

Wed Aug 20, 2014 7:56 am

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 |
522 |

Sat Aug 16, 2014 5:20 am

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

1 |
601 |

Thu Aug 14, 2014 8:08 pm

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

1 |
688 |

Tue Aug 12, 2014 8:22 pm

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 position’s beta? A) If the market...

0 |
655 |

Mon Aug 11, 2014 3:03 pm

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 |
697 |

Mon Aug 11, 2014 6:20 am

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

2 |
670 |

Mon Aug 11, 2014 6:14 am

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 |
674 |

Mon Aug 11, 2014 6:04 am

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 |
701 |

Mon Aug 11, 2014 5:24 am

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 |
753 |

Mon Aug 11, 2014 4:54 am

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 |
651 |

Sun Aug 10, 2014 6:28 am

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 |
670 |

Sun Aug 10, 2014 6:22 am

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...

1 |
720 |

Wed Aug 06, 2014 7:40 am

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...

1 |
891 |

Tue Aug 05, 2014 3:40 pm

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 |
635 |

Mon Aug 04, 2014 10:00 am

what is the meaning of CAGR in financial modeling.

1 |
671 |

Mon Aug 04, 2014 7:36 am

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 |
666 |

Sun Aug 03, 2014 5:36 am

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

1 |
1000 |

Fri Aug 01, 2014 2:46 pm

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) ...

1 |
704 |

Mon Jul 28, 2014 11:36 pm

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 |
642 |

Thu Jul 24, 2014 7:01 am

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 |
937 |

Thu Jul 24, 2014 6:59 am

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

1 |
779 |

Mon Jul 21, 2014 9:56 am

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 |
782 |

Sat Jun 28, 2014 2:41 am

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 |
728 |

Fri Jun 27, 2014 6:40 pm

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

1 |
689 |

Thu Jun 26, 2014 7:34 pm

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 |
698 |

Wed Jun 25, 2014 6:56 pm

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

2 |
695 |

Mon Jun 16, 2014 7:12 pm

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 |
736 |

Mon Jun 09, 2014 5:29 pm

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 |
662 |

Sun Jun 08, 2014 3:42 am

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 |
714 |

Sun Jun 08, 2014 3:20 am

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 |
648 |

Thu May 29, 2014 12:37 am

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 |
647 |

Wed May 28, 2014 3:03 pm

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 |
645 |

Mon May 26, 2014 3:00 am

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 |
548 |

Fri May 23, 2014 5:44 am

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 |
496 |

Fri May 23, 2014 5:31 am

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 |
430 |

Sat May 17, 2014 11:59 am

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 |
491 |

Sat May 17, 2014 10:26 am

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 |
482 |

Fri May 16, 2014 3:39 pm

(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 |
433 |

Thu May 15, 2014 1:03 pm

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 |
508 |

Thu May 15, 2014 10:49 am

(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 |
549 |

Thu May 15, 2014 9:47 am

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 |
494 |

Wed May 14, 2014 7:53 am

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 |
515 |

Mon May 12, 2014 8:15 am

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 |
7410 |

Mon May 12, 2014 8:09 am

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 |
507 |

Mon May 12, 2014 8:05 am

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 |
831 |

Mon May 12, 2014 8:02 am

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 |
532 |

Mon May 12, 2014 6:42 am

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 |
1197 |

Mon May 12, 2014 4:11 am

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 |
1756 |

Mon May 12, 2014 4:00 am

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 |
470 |

Sun May 11, 2014 5:26 am

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 |
428 |

Thu May 08, 2014 8:51 am

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 |
408 |

Wed May 07, 2014 7:42 am

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 |
432 |

Tue May 06, 2014 9:44 am

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 |
425 |

Mon May 05, 2014 8:27 am

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 |
512 |

Mon May 05, 2014 8:20 am

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 |
464 |

Mon May 05, 2014 8:16 am

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 |
498 |

Fri May 02, 2014 12:49 pm

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 |
450 |

Fri May 02, 2014 10:18 am

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 |
439 |

Thu May 01, 2014 8:22 pm

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 |
455 |

Thu May 01, 2014 6:38 pm

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 |
479 |

Thu May 01, 2014 1:10 pm

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 |
413 |

Thu May 01, 2014 8:14 am

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 |
436 |

Wed Apr 30, 2014 5:11 pm

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 |
833 |

Wed Apr 30, 2014 11:10 am

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 bond’s liquidity c) Flight to quality d) Addition of e...

1 |
437 |

Wed Apr 30, 2014 11:08 am

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 |
416 |

Wed Apr 30, 2014 11:06 am

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 |
408 |

Wed Apr 30, 2014 6:19 am

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 |
406 |

Wed Apr 30, 2014 5:57 am

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 |
364 |

Mon Apr 28, 2014 5:29 pm

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 |
416 |

Mon Apr 28, 2014 7:19 am

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 |
450 |

Mon Apr 28, 2014 7:12 am

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 |
422 |

Mon Apr 28, 2014 7:00 am

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 |
438 |

Sat Apr 19, 2014 4:06 pm

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 |
421 |

Fri Apr 18, 2014 4:42 am

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 |
447 |

Sun Apr 06, 2014 8:11 am

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 |
419 |

Sat Apr 05, 2014 3:04 pm

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

1 |
447 |

Tue Apr 01, 2014 4:00 am

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

1 |
408 |

Sun Mar 30, 2014 1:29 pm

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

2 |
1093 |

Sun Mar 30, 2014 1:26 pm

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

1 |
375 |

Sun Mar 30, 2014 1:26 pm

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

1 |
375 |

Fri Mar 28, 2014 12:09 pm

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 |
445 |

Wed Mar 26, 2014 1:04 pm

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 |
722 |

Tue Mar 25, 2014 4:49 pm

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 |
976 |

Sat Mar 15, 2014 7:23 pm

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 |
372 |

Sat Mar 15, 2014 11:48 am

PRM-I, Finance Theory ► 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 |
351 |

Tue Mar 11, 2014 11:46 am

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 |
465 |

Mon Mar 10, 2014 10:17 am

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 |
471 |

Sun Mar 09, 2014 11:35 am

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 |
435 |

Sat Mar 08, 2014 7:08 am

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 |
337 |

Sat Mar 08, 2014 7:06 am

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 |
364 |

1 |
293 |

Thu Mar 06, 2014 12:01 pm

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

1 |
327 |

Tue Mar 04, 2014 6:05 pm

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 |
308 |

Sun Mar 02, 2014 11:54 am

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 |
348 |

Sun Mar 02, 2014 8:20 am

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 |
336 |

Sun Mar 02, 2014 7:43 am

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 |
338 |

Sun Mar 02, 2014 5:33 am

Can anybody explain cliquet options with an example.

2 |
299 |

Sat Mar 01, 2014 4:43 pm

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 |
387 |

Mon Feb 24, 2014 6:40 am

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 |
287 |

Tue Feb 18, 2014 8:44 am

(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 |
378 |

Fri Feb 14, 2014 4:59 pm

Three traders, Amit, Balram and Chandok play a game of dice. Whoever throws a "6" 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 |
292 |

Sun Feb 02, 2014 4:32 pm

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 |
316 |

Sun Feb 02, 2014 2:35 pm

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 |
365 |

Sun Feb 02, 2014 2:05 pm

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 |
313 |

Thu Jan 30, 2014 1:31 pm

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 |
299 |

Wed Jan 29, 2014 9:46 am

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 |
396 |

2 |
277 |

Wed Jan 22, 2014 5:30 am

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

2 |
277 |

Sun Jan 12, 2014 12:54 pm

'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 |
338 |

Sat Jan 04, 2014 3:25 pm

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 |
1199 |

Fri Jan 03, 2014 3:42 am

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 |
309 |

Thu Jan 02, 2014 3:41 am

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

2 |
291 |

Sat Dec 28, 2013 3:38 am

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

1 |
258 |

2 |
267 |

Thu Dec 12, 2013 6:56 am

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

2 |
295 |

Tue Dec 03, 2013 9:23 am

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 |
346 |

Fri Nov 29, 2013 7:11 am

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 ‘c’ For any matrix A, Characteristics equation is given by, (A - λI) = 0 S...

2 |
316 |

Thu Nov 28, 2013 5:34 am

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 |
304 |

Thu Nov 28, 2013 4:47 am

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 |
296 |

Wed Nov 27, 2013 3:33 pm

Can anyone explain me how to calculate normalized eigenvector. Thanks

2 |
310 |

Sun Nov 24, 2013 5:05 am

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 |
347 |

Sat Nov 23, 2013 1:38 am

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

2 |
612 |

Fri Nov 22, 2013 3:32 pm

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 |
462 |

Thu Nov 21, 2013 4:49 am

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 |
1277 |

Wed Nov 20, 2013 1:14 am

what could be the cut off for passing the exam?

2 |
541 |

Mon Nov 18, 2013 3:28 pm

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 |
389 |

1 |
294 |

Wed Nov 06, 2013 9:27 am

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 |
330 |

Wed Nov 06, 2013 6:29 am

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 |
290 |

Sat Nov 02, 2013 8:31 pm

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 |
275 |

Sat Nov 02, 2013 7:51 pm

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

3 |
262 |

2 |
256 |

Fri Oct 25, 2013 4:24 pm

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

2 |
260 |

Fri Oct 25, 2013 10:55 am

→what is the difference between cash future price and quoted future price

2 |
260 |

Sun Oct 20, 2013 6:01 pm

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

4 |
444 |

Sat Oct 19, 2013 6:34 am

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 |
681 |

Thu Oct 17, 2013 11:28 am

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 |
341 |

Wed Oct 16, 2013 11:54 am

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 |
250 |

Wed Oct 16, 2013 11:46 am

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 |
276 |

Wed Oct 16, 2013 5:43 am

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 |
257 |

Wed Oct 16, 2013 5:40 am

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 |
246 |

Wed Oct 16, 2013 5:39 am

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 |
258 |

1 |
375 |

Mon Oct 14, 2013 12:33 pm

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 |
239 |

Fri Oct 11, 2013 8:07 am

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 |
715 |

Thu Oct 10, 2013 11:23 am

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

1 |
344 |

Thu Oct 10, 2013 11:03 am

For an uncorrelated portfolio what is the VaR if: •VaR asset A is $10 mn •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 |
226 |

Wed Oct 09, 2013 10:53 am

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 |
224 |

Wed Oct 09, 2013 2:40 am

You are hired as the credit risk manager for a large bank. You find that the bank’s 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 |
247 |

Tue Oct 08, 2013 12:20 pm

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 |
252 |

Tue Oct 08, 2013 11:46 am

A bank cr officer, who has reviewed a loan application, has made the following statement:“On 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 |
302 |

Tue Oct 08, 2013 11:43 am

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 |
218 |

Tue Oct 08, 2013 5:28 am

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 |
233 |

Tue Oct 08, 2013 5:25 am

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

2 |
246 |

Tue Oct 08, 2013 1:46 am

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 |
211 |

Tue Oct 08, 2013 1:42 am

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 |
220 |

Wed Oct 02, 2013 11:57 am

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 & hardly one question from Volatility smiles. So is there is any chance of getting such...

1 |
307 |

Sun Sep 29, 2013 7:24 am

(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 |
252 |

Fri Sep 27, 2013 6:54 am

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 |
413 |

Tue Sep 24, 2013 9:53 am

Are the below formulas for Variance and Covariance true σxy=1/n*Ʃ(X-µx)(Y-µy) =1/nƩXY – (µX*µY) σ^2=1/n*Ʃ(X-µ)^2=1/n*Ʃ(X^2) - µ^2 Please advice on the last part of both formulas in perticular

1 |
267 |

Fri Sep 13, 2013 7:38 am

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 |
836 |

Thu Sep 12, 2013 9:28 am

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 |
304 |

Sun Sep 08, 2013 4:24 pm

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 |
351 |

Sun Sep 08, 2013 7:50 am

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 |
252 |

Sat Aug 31, 2013 1:46 pm

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 |
300 |

Sat Aug 31, 2013 11:59 am

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 |
216 |

Wed Aug 21, 2013 2:09 pm

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 |
285 |

Wed Aug 21, 2013 2:03 pm

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 |
268 |

Tue Aug 20, 2013 9:17 am

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 |
244 |

Fri Aug 16, 2013 9:18 am

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&06

1 |
253 |

Tue Aug 13, 2013 7:28 am

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 |
276 |

Thu Aug 08, 2013 1:39 am

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 |
240 |

Thu Aug 08, 2013 1:12 am

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

1 |
378 |

Mon Jul 29, 2013 1:10 pm

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 |
301 |

Mon Jul 22, 2013 4:16 pm

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 |
268 |

Tue Jul 16, 2013 5:44 pm

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 |
364 |

Tue Jul 16, 2013 5:40 pm

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 |
278 |

Fri Jul 12, 2013 12:07 am

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

1 |
286 |

Fri Jul 12, 2013 12:06 am

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

2 |
390 |

Tue Jul 09, 2013 3:34 am

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

2 |
283 |

Wed Jul 03, 2013 9:01 am

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 |
409 |

Mon Jul 01, 2013 5:53 pm

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

1 |
350 |

Mon Jul 01, 2013 5:49 pm

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

1 |
260 |

Fri Jun 28, 2013 10:04 am

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 |
380 |

Mon Jun 24, 2013 8:01 am

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 |
624 |

Mon Jun 17, 2013 4:15 am

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

1 |
261 |

Thu Jun 13, 2013 8:40 am

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 |
1002 |

Wed May 29, 2013 6:39 pm

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

0 |
190 |

Fri May 24, 2013 6:42 pm

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 |
266 |

Fri May 17, 2013 5:58 pm

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 |
289 |

Wed May 15, 2013 12:22 pm

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 |
319 |

Mon May 13, 2013 9:06 pm

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

0 |
279 |

Sun May 12, 2013 10:00 pm

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 |
328 |

Sun May 12, 2013 9:40 pm

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 |
370 |

Sun May 12, 2013 9:36 pm

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 |
320 |

Sun May 12, 2013 9:35 pm

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 |
396 |

Sun May 12, 2013 9:33 pm

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 |
432 |

Fri May 10, 2013 8:31 am

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 |
328 |

Sun May 05, 2013 1:28 am

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

0 |
414 |

Sat May 04, 2013 4:46 pm

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 |
303 |

Sat May 04, 2013 2:36 pm

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 |
380 |

Fri May 03, 2013 12:10 pm

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

0 |
378 |

Fri May 03, 2013 8:08 am

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 |
527 |

Thu May 02, 2013 4:22 pm

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 |
443 |

Wed May 01, 2013 4:35 pm

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 |
263 |

Tue Apr 30, 2013 7:26 pm

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 |
289 |

Tue Apr 30, 2013 2:28 pm

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 |
634 |

Sun Apr 28, 2013 5:11 pm

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

0 |
246 |

Sat Apr 27, 2013 3:51 pm

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 |
274 |

Thu Apr 25, 2013 7:42 pm

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

1 |
257 |

Thu Apr 25, 2013 7:57 am

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

1 |
415 |

0 |
298 |

Sat Apr 20, 2013 11:18 am

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 |
648 |

Fri Apr 19, 2013 6:16 pm

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 |
306 |

Thu Apr 18, 2013 11:50 pm

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 |
265 |

Thu Apr 18, 2013 11:21 pm

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 |
272 |

Thu Apr 18, 2013 9:30 pm

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 |
246 |

Thu Apr 18, 2013 6:10 pm

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 |
280 |

Thu Apr 18, 2013 5:10 pm

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 |
297 |

Thu Apr 18, 2013 11:43 am

Question-"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 |
369 |

Tue Apr 16, 2013 10:00 am

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 |
309 |

Mon Apr 15, 2013 4:56 pm

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

2 |
333 |

Mon Apr 15, 2013 2:21 pm

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 |
615 |

Tue Apr 09, 2013 4:27 pm

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 |
344 |

Tue Apr 09, 2013 1:05 am

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 |
479 |

Tue Apr 09, 2013 12:58 am

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 |
269 |

Tue Apr 09, 2013 12:54 am

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 |
267 |

Tue Apr 09, 2013 12:50 am

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 |
248 |

Tue Apr 09, 2013 12:39 am

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 |
352 |

Sun Apr 07, 2013 12:37 am

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 |
290 |

Sun Apr 07, 2013 12:36 am

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 |
245 |

Sun Apr 07, 2013 12:35 am

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 |
253 |

Sun Apr 07, 2013 12:34 am

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 |
319 |

Fri Apr 05, 2013 6:56 pm

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

0 |
283 |

Thu Apr 04, 2013 3:29 pm

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

1 |
252 |

Thu Apr 04, 2013 1:01 pm

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 |
271 |

Wed Apr 03, 2013 5:05 pm

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 |
300 |

Wed Apr 03, 2013 5:03 pm

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

0 |
150 |

Mon Apr 01, 2013 4:31 am

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 |
398 |

Fri Mar 29, 2013 11:45 am

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 |
352 |

Mon Mar 25, 2013 12:48 am

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 |
314 |

Mon Mar 25, 2013 12:39 am

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 |
230 |

Sun Mar 24, 2013 2:36 pm

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 |
264 |

Sun Mar 24, 2013 2:01 pm

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 |
256 |

Sun Mar 24, 2013 1:59 pm

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 |
255 |

Sat Mar 23, 2013 8:38 pm

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

0 |
529 |

Fri Mar 22, 2013 1:16 am

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

1 |
237 |

Thu Mar 21, 2013 10:48 pm

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 |
254 |

Thu Mar 21, 2013 10:22 pm

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 |
248 |

Thu Mar 21, 2013 2:01 am

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 |
271 |

Wed Mar 20, 2013 4:36 pm

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 |
265 |

Wed Mar 20, 2013 3:55 pm

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

1 |
238 |

Wed Mar 20, 2013 1:39 am

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

1 |
252 |

Wed Mar 20, 2013 1:32 am

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 |
247 |

Wed Mar 20, 2013 1:27 am

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

0 |
229 |

Tue Mar 19, 2013 4:20 pm

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

1 |
230 |

Tue Mar 19, 2013 3:38 pm

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 |
229 |

Mon Mar 18, 2013 11:20 pm

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 |
632 |

Sun Mar 17, 2013 9:02 pm

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

1 |
449 |

Sat Mar 16, 2013 7:49 pm

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 |
688 |

Sat Mar 16, 2013 6:05 am

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 |
294 |

Sat Mar 16, 2013 5:59 am

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 |
215 |