Free GARP FRM-Part-1 Exam Questions

Suppose a bond with a par value of 1000 has coupon payments of 10% per annum and a yield to maturity of5%. If the bond has 4 years to maturity, what is the price of the bond?

Regarding the conditions for model selection criteria to demonstrate consistency, which of the following statements is true?I. The most consistent selection criteria with the greatest penalty factor for degrees of freedom is unbiased mean squared error.II. If we consider the fact that the true model may be much more complicated than the models under consideration, then the Akaike information criterion (AIC) measure should be examined.

An analyst is choosing between two machine learning models. Which of the following datasets will the analyst most likely use to make the determination of which model to select?

As a research analyst, you're analyzing the probability that the prices of dollar will go below 72 after theupcoming budget. Suppose that the prices of dollar are uniformly distributed with a floor at Rs. 70 and a ceiling atRs. 75 imposed by the government, then what is the probability that the prices of gold will be set below 72?

A risk analyst at an asset management company is assessing the past performance of an internally managed equity fund. The analyst obtains the following information on the market and the fund over the last year:• Treynor performance index for the fund: 8.00%• Return of the market portfolio: 5.60%• Beta of the fund: 0.65• Risk-free rate of interest: 1.75%Based on the information above, what is the Jensen’s alpha for the equity fund over the same period?