Page 132:
In the Interest Rate Risk vs. Liquidity Risk paragraph, the direction of interest rate risk is misstated. It should read: "When a bank funds long-term assets with shorter-term liabilities, it increases its exposure to interest rate risk and increases its funding liquidity risk. Conversely, if a bank matches long-term assets with long-term liabilities, it lowers funding liquidity risk and generally reduces interest rate risk due to a smaller repricing/duration mismatch." (2/16/2026)
Page 19:
The last sentence before LO 13.f should say: "Compared to a given distribution, the outcomes of a distribution with a lower interquartile range are more concentrated around the median (i.e., the center of the distribution), just as they are for a distribution with a lower standard deviation (around the mean).” (2/16/2026)
Page 144:
In Cook's distance equation, k is equal to the number of parameters, which includes the independent variables and the intercept. (2/16/2026)
Page 145:
In Step 2, the Trial 14 y value (all data) should be 2.27 (not 2.77) and the Trial 15 y value (all data) should be 1.90 (not 2.90). The computed sum of squared differences should then be 0.4095, and the residual variance should have been 0.1771. Therefore, Cook's distance is computed as: 0.4095 / (2 * 0.1771) = 1.16. (1/13/2026)
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