No, B is not the ans because, Alternate hypothesis not considers all possible value of parameter, Alternate & Null both mutually considers all possible values.
No, B is not the ans because, Alternate hypothesis not considers all possible value of parameter,
Alternate & Null both mutually considers all possible values.
So they are asking that given the Stressful scenario between year 12 to 16 what was the situation of ERP at that time? so in answer of that, as we can see The Equity risk premium at that scenario is not Normal and Investor compensated low because of the given scenario, but if this would not have beeRead more
So they are asking that given the Stressful scenario between year 12 to 16 what was the situation of ERP at that time?
so in answer of that, as we can see
The Equity risk premium at that scenario is not Normal and Investor compensated low because of the given scenario, but if this would not have been the case, environment was normal at that time
so the ERP of those 5 year phase was Biased Downwards bcz of the given scenario.
Yes the answer is 3.73%, First we have to find exp credit spread which is, 0.02x0.60 + 0.30x0.90 + 4.80x1.10 + 85.73x1.50 + 6.95x3.40 + 1.75x6.50 + 0.45x9.50 = 173.43 divide it by 100 to get % = 1.7344% Now, Exp change in return= ( Actual Spread - Exp Spread ) x MD = (1.50-1.7344) x 7.54 = -1.767Read more
B) Higher bcz Domestic currency is trading at premium, So as per the Int rate parity, Foreign country’s Interest rate should be higher in money market to make the Quote No arbitrage, and if it is not then one can carry out arbitrage.
B) Higher
bcz Domestic currency is trading at premium, So as per the Int rate parity, Foreign country’s Interest rate should be higher in money market to make the Quote No arbitrage, and if it is not then one can carry out arbitrage.
it is upto your understanding of Ethics in Level 1, if the basics of level 1 are very strong thn you can Directly start Questions, and with the Intuition you can carry on. But My personal Advise is to watch at least Incremental portion of Level 2, the last topic " Application of Code and Standard "Read more
it is upto your understanding of Ethics in Level 1, if the basics of level 1 are very strong thn you can Directly start Questions, and with the Intuition you can carry on.
But My personal Advise is to watch at least Incremental portion of Level 2, the last topic ” Application of Code and Standard ” you can watch to Brush up the concepts for better hedge.
Yes both Credit Score and Credit Ratings Reflects PD & LGD but, Main Focus in Credit Ratings is LGD, because the Rating agencies considers LGD by means of Notching, which adjust the issuer rating to reflect the priority of claims in the Capital Structure. while LGD is not that impRead more
Yes both Credit Score and Credit Ratings Reflects PD & LGD but,
Main Focus in Credit Ratings is LGD, because the Rating agencies considers LGD by means ofNotching, which adjust the issuer rating to reflect the priority of claims in the Capital Structure.
while LGD is not that important for Credit Score, for Credit Score PD is Main Focus.
Hypothesis Testing
No, B is not the ans because, Alternate hypothesis not considers all possible value of parameter, Alternate & Null both mutually considers all possible values.
No, B is not the ans because, Alternate hypothesis not considers all possible value of parameter,
Alternate & Null both mutually considers all possible values.
See lessCost of capital-adv concepts
So they are asking that given the Stressful scenario between year 12 to 16 what was the situation of ERP at that time? so in answer of that, as we can see The Equity risk premium at that scenario is not Normal and Investor compensated low because of the given scenario, but if this would not have beeRead more
So they are asking that given the Stressful scenario between year 12 to 16 what was the situation of ERP at that time?
so in answer of that, as we can see
The Equity risk premium at that scenario is not Normal and Investor compensated low because of the given scenario, but if this would not have been the case, environment was normal at that time
so the ERP of those 5 year phase was Biased Downwards bcz of the given scenario.
hope it helps..!!
See lessis this type of sum testable becuase the solution itself is about 1 page if yes than give me a shortcut to solve this
Yes the answer is 3.73%, First we have to find exp credit spread which is, 0.02x0.60 + 0.30x0.90 + 4.80x1.10 + 85.73x1.50 + 6.95x3.40 + 1.75x6.50 + 0.45x9.50 = 173.43 divide it by 100 to get % = 1.7344% Now, Exp change in return= ( Actual Spread - Exp Spread ) x MD = (1.50-1.7344) x 7.54 = -1.767Read more
Yes the answer is 3.73%,
First we have to find exp credit spread which is,
0.02×0.60 + 0.30×0.90 + 4.80×1.10 + 85.73×1.50 + 6.95×3.40 + 1.75×6.50 + 0.45×9.50 = 173.43
divide it by 100 to get % = 1.7344%
Now, Exp change in return= ( Actual Spread – Exp Spread ) x MD
= (1.50-1.7344) x 7.54
= -1.7671
Now Next Year’s exp return = Current YTM + Expected Change in TYM
So we have, 5.50 + ( -1.7671)
= 3.7329
Hope it Helps!
Currency Exchange Rate
B) Higher bcz Domestic currency is trading at premium, So as per the Int rate parity, Foreign country’s Interest rate should be higher in money market to make the Quote No arbitrage, and if it is not then one can carry out arbitrage.
B) Higher
bcz Domestic currency is trading at premium, So as per the Int rate parity, Foreign country’s Interest rate should be higher in money market to make the Quote No arbitrage, and if it is not then one can carry out arbitrage.
See lessGeneral query in Ethics
it is upto your understanding of Ethics in Level 1, if the basics of level 1 are very strong thn you can Directly start Questions, and with the Intuition you can carry on. But My personal Advise is to watch at least Incremental portion of Level 2, the last topic " Application of Code and Standard "Read more
it is upto your understanding of Ethics in Level 1, if the basics of level 1 are very strong thn you can Directly start Questions, and with the Intuition you can carry on.
But My personal Advise is to watch at least Incremental portion of Level 2, the last topic ” Application of Code and Standard ” you can watch to Brush up the concepts for better hedge.
See lessAppraisal Based Index
Thanks a lot for clarification.
Thanks a lot for clarification.
See lessCredit Amalysis model.
Yes both Credit Score and Credit Ratings Reflects PD & LGD but, Main Focus in Credit Ratings is LGD, because the Rating agencies considers LGD by means of Notching, which adjust the issuer rating to reflect the priority of claims in the Capital Structure. while LGD is not that impRead more
Yes both Credit Score and Credit Ratings Reflects PD & LGD but,
Main Focus in Credit Ratings is LGD, because the Rating agencies considers LGD by means of Notching, which adjust the issuer rating to reflect the priority of claims in the Capital Structure.
while LGD is not that important for Credit Score, for Credit Score PD is Main Focus.
Questions on Backtesting and Simulation
Yes, the questions are there in Core readings you can check the same
Yes, the questions are there in Core readings you can check the same
See lessDerivative option
Yes, this chapter is no longer in CFA level 2 curriculum.
Yes, this chapter is no longer in CFA level 2 curriculum.
See lessEurodollar futures options used for hedging
ooh yes, i got it thanks Naman for clarifying.
ooh yes, i got it thanks Naman for clarifying.
See less