Which reminds me for Active/Tracking risk, the numerator should be squared and the whole fraction square rooted. My mistake
Single Monthly Mortality for an auto ABS
SMM=Absolute Prepmt speed or ABS / 1-[ABS * (m-1)]
What if find useful is to try and understand all i can understand from reading the materials.
As i solve questions through the text book and Pro, some how there is a sense in which the questions are directed at certain formuale more than others; some formulae are more fundamental than others like the price multiples for eg. I then resolve to memorise those. as for the others like Black-Scholes, I ‘use the hang inwardrobe approach…….. grab them by the neck during the crucal final weeks.
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No thanks, I don't want to increase my probability of passing.