Key Performance Measures (FRM Part 1, Part 2)
Here, we look at key measures or indicators used to measure the performance of portfolios specifically Sharpe Ratio, Treyner’s Measure and Jensen’s Alpha.
Category: Swatches
Approximate Method for Pricing ATM Options (FRM Part 1)
In this swatch, we look at a quick and easy way of finding the price and implied volatility for an at-the-money (ATM) option.
Credit Risk: Expected and Unexpected Losses (FRM Part 1)
In this short video, we take a look at a very simple credit risk formulation that models default as a one-step Bernoulli trial.
Hypothesis Testing: p-value Approach (FRM Part 1)
The p-value approach is an approach for specifying decision rules that make use of probabilities instead of critical values.
Adjusting Option Terms for Stock Dividends (FRM Part 1)
Here, we take a look at how option contracts are adjusted for stock dividends and stock splits.
Foreign Exchange Risk: Simple Formulation (FRM Part 1)
Here is a quick and simple formulation for gaining insights into foreign exchange risk and hedging it.
Modeling Cycles: Quick Reference (FRM Part 1)
Here is a quick reference sheet for formulation and properties of various models used for modeling cycles.