Actively Help each other and Clear FRM
Forming study groups is a very effective strategy for enhancing learning. This is because groups share unique insights and learn from each other. Group members can also teach confusing concepts they understand to other group members.
Anyone having sample papers for FRM 1?, please share. TIA
hi
If interested in creating FRM part 1 Nov 2017 study group just drop me a message. Most of people know about calculator ,material n lots.
Group members can also teach confusing concepts they understand to other group members
Book 2 GARP
Chapter -2- Probabilities
PROBLEMS
1. You are invested in two hedge funds. The probability that hedge fund Alpha
generates positive returns in any given year is 60%. The probability that hedge
fund Omega generates positive returns in any given year is 70%. Assume the
returns are independent. What is the probability that both funds generate
positive returns in a given year? What is the probability that both funds lose
money?
2. Corporation ABC issues $100 million of bonds. The bonds are rated BBB. The
probability that the rating on the bonds is upgraded within the year is 8%.
The probability of a downgrade is 4%. What is the probability that the rating
remains unchanged?
3. Stock XYZ has a 20% chance of losing more than 10% in a given month.
There is also a 30% probability that XYZ gains more than 10%. What is the
probability that stock XYZ either loses more than 10% or gains more than
10%?
4. There is a 30% chance that oil prices will increase over the next six months. If
oil prices increase, there is a 60% chance that the stock market will be down.
What is the probability that oil prices increase and the stock market is down
over the next six months?
Any one want to check answers? please DM me...thanks
Answers
1) probability that both funds generate
positive returns-0.42
probability that both funds lose
money- 0.58
2)
Answer 2) Prob of unchange is 88%
3)probability that stock XYZ either loses more than 10% or gains more than
10%= 50%
4)probability that oil prices increase and the stock market is downover the next six months
=0.18%
Answer 8)What is the probability that
both bonds default-0.09
What is the probability that only one bond defaults- 0.3
What is the probability that neither bond defaults=0.4
9)What is the probability that the bond defaults
(D rating) over one year-0.2
What is the probability that the bond defaults over two
years= 0.04
Answer 10)What is the
unconditional probability that the manager is up next year=50%
all d best for exam
all d best
Would appreciate if anyone can share bionic turtle with me
Can someone please provide me material for FRM-1 Nov 2017?
hi, anyone in Chennai, Siruseri // Navalur area pursuing Nov 2017 exam. Pls reply to me...Thanks.