Financial Exam Help 123

Category: Free

  • Key Rate Duration

    —

    by

    Bill Campbell
    in

    In computing modified (or effective) duration for a portfolio of securities, we change the par interest rate (the yield to maturity) at every maturity by some small amount up and down (±Δy), and determine the percentage price change in the portfolio for 1% change in yield.  In essence, we add ±Δy to the entire par…

  • Valuing Derivatives

    —

    by

    Bill Campbell
    in

    Valuing derivatives – forwards, futures, FRAs, and swaps – is much the same as pricing them.  The value of a derivative is the amount that one party would have to pay the other if the derivative were to expire today; it depends on the price of the underlying today compared to the price at the…

  • Covered Interest Rate Parity (IRP) – Pricing Currency Forwards

    —

    by

    Bill Campbell
    in

    Pricing currency forward contracts – determining the appropriate future exchange rate to use – is relatively straightforward; it is based on the risk-free interest rates for the currencies involved, and the no-arbitrage condition (i.e., the forward exchange rate should make arbitrage impossible).  Because the elimination of arbitrage means that the forward exchange rate has to…

  • IS/LM: Deriving Aggregate Demand

    —

    by

    Bill Campbell
    in

    There are four articles on IS/LM: Synopsis Part 1: the IS curve Part 2: the LM curve Part 3: combining the IS and LM curves

  • Level III – Equity Portfolio Management

    —

    by

    Bill Campbell
    in

    I’m still working on Level III Equity Portfolio Management articles; as I finish them I’ll list them here.  If you’d like to see specific articles on Level III Equity Portfolio Management, just ask. [menu name = “Level III Equity Portfolio Management Articles”]

  • Level III – GIPS®

    —

    by

    Bill Campbell
    in

    I’m still working on Level III GIPS® articles; as I finish them I’ll list them here.  If you’d like to see specific articles on Level III GIPS®, just ask. [menu name = “Level III GIPS® Articles”]

  • Level III – Evaluation and Attribution

    —

    by

    Bill Campbell
    in

    Here are some articles on Level III Evaluation and Attribution. If you’d like to see specific articles on Level III Evaluation and Attribution, just ask. [menu name = “Level III Evaluation and Attribution Articles”]

  • Level III – Trade Execution, Monitoring, and Rebalancing

    —

    by

    Bill Campbell
    in

    Here are some articles on Level III Trade Execution, Monitoring, and Rebalancing.  If you’d like to see specific articles on Level III Trade Execution, Monitoring, and Rebalancing, just ask. [menu name = “Level III Execution, Monitoring, and Rebalancing Articles”]

  • Level III – Derivatives

    —

    by

    Bill Campbell
    in

    Here are some articles on Level III Derivatives.  If you’d like to see specific articles on Level III Derivatives, just ask. [menu name = “Level III Derivatives Articles”]

  • Level III – Risk Management

    —

    by

    Bill Campbell
    in

    I’m still working on Level III Risk Management articles; as I finish them I’ll list them here.  If you’d like to see specific articles on Level III Risk Management, just ask. [menu name = “Level III Risk Management Articles”]