How To Pass FRM Exam Exams such as the Financial Risk Manager (FRM) and Chartered Financial Analyst (CFA) are distinct from traditional academic exams. Their complexity and focus on real-world application demand a specialized approach to ensure success. Table of Content: Understanding the Difference Common mistakes by FRM/CFA students Importance of the Right Approach Strategic … Read more
Backtesting VaR Introduction Backtesting techniques serve as a robust method for validating the accuracy of Value at Risk (VaR) models. Within this formal statistical framework, the objective is to assess whether the realized losses align with the anticipated losses. This is accomplished through a systematic examination of the historical VaR forecasts in comparison to the … Read more
$$Expected\;Shortfall\;=\;\frac1\alpha\;\ast\;{\textstyle\sum_{x=0}^\alpha}\;\;(x^{th}\;loss\;\ast\;Probability\;of\;x^{th}\;loss)$$ Table of Content: Understanding Value at Risk (VaR) Introduction to Expected Shortfall (ES) Calculation of Expected Shortfall Subadditivity Property of ES Comparison with VaR ES vs. VaR: Applicability and Assumptions Understanding Value at Risk (VaR) Definition: VaR represents the minimum percent loss, typically the 5th percentile return. It indicates the worst-case quantile return … Read more
How to be Successful Unlock the keys to success with our guide on ‘How to be Successful.’ Discover actionable strategies, cultivate a growth mindset, and navigate challenges with confidence. This concise resource offers practical tips, empowering you to set and achieve meaningful goals. Explore the mindset, habits, and skills that pave the way for success, … Read more
Leadership skills to succeed in corporate world Introduction Embark on a journey through the leadership landscape, where a team faces real-world challenges and their leader emerges as a beacon of L.E.A.D.E.R.S.H.I.P. These vivid stories illuminate the qualities of L.E.A.D.E.R.S.H.I.P. Each narrative is a testament to a leader who listens, empathizes, supports, and actively shapes a … Read more
When should I early exercise American call? Introduction: Early exercise of a call option refers to the act of exercising the option before its expiration date. A call option gives the holder the right, but not the obligation, to buy a specific quantity of an underlying asset at a predetermined price (strike price) before or … Read more
Sociological and Psychological Perspective of Gender Introduction In the realm of education, understanding the intricate interplay between gender, sociology, and psychology is pivotal for aspiring educators. As B.Ed first-year students embark on this enlightening academic journey, exploring the multifaceted dimensions of gender becomes not only an intellectual pursuit but a crucial step towards creating inclusive … Read more
Japan-Nikkei in sight of record high About Nikkei Stock Index The Nikkei 225, often simply referred to as the Nikkei, is a prominent stock market index in Japan, widely regarded as a key indicator of the country’s economic performance. Introduced in 1950 by the Nihon Keizai Shimbun (Nikkei) newspaper, the index comprises 225 leading companies … Read more
Basics of Normal Distribution Introduction: In the realm of statistics and probability theory, one concept stands out as a cornerstone for understanding the distribution of data – the Normal Distribution. Whether you’re dealing with financial data, analyzing educational outcomes, or exploring the intricacies of natural phenomena, the normal distribution is a fundamental concept that underpins … Read more
Mean and Standard Deviation of Grouped Data In statistics, we have studied the classification of data into a grouped and ungrouped frequency distribution. These data can be pictorially represented using different graphs such as bar graphs, frequency polygons and histograms and so on. Also, we know that the three measures of central tendencies are mean, … Read more
