Raising number to the power of fraction

ashishsinha
Good Student
Posts: 12
Joined: Mon Jul 01, 2013 5:45 pm

Raising number to the power of fraction

Postby ashishsinha » 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 raise 90 (probability of non-default to the power of 1/4. However being raised to such value it does not give me the right answer i.e., 97.4%. How to raise a number to the power of a fraction in TI BA II Plus Professional Calculator

praveen.skasc
Posts: 1
Joined: Thu Aug 29, 2013 1:20 am

Raising number to the power of fraction

Postby praveen.skasc » Thu Aug 29, 2013 1:24 am

Hi Ashish,

Use the same y raised x button as normal. Probably you could have tired directly 90 raised to .25 which is 3.08.... Use 0.90 raised to .25; the answer is .974


Return to “FRM Part I”



cron

Disclaimer

Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to abuse@edupristine.com and we will rectify it.