Jameel’s Two and Three-Dimensional Stressed Closed Form Models are Indeed IFRS 9 Complaint Models

In the paper entitled “IFRS 9 Measurement of Financial Instruments 2018: Jameel’s Non-Normal Brownian Motion Models are Indeed IFRS 9 Complaint Models”, the author was able to incorporated a forward-looking information {WJB(t)} satisfied Jameel’s Criterion and Geometric average of only positive Economic forecasts of the future Macroeconomic parameters {(μA) and (σA)} using Jameel’s Contractional-Expansional Stress Methods and Jameel’s substitutions {(μA ± σA WJB(t))} , μA is PSSITIVE INFINITESIMA,, σA ≥ 1 into Geometric Brownian Motion, Biagin, Cox-Ingersoll-Ross, Srnstein-Uhlenbeck process, Vasicek, Black-Karasinki, Chen, Kalotay-Williams-Fabozzi, ,ongstaff-Schwatz, Ho-,ee, Hull and White, and Black-Derman-Toy Models for Pricing Stocks, Bitcoin, Indexes, ETFs, and ,everaged ETFs, Bonds, Interest Rate Movements, Caps, Floors, European Swaptions, and Bond Sptions. However, in this paper, the author has attempted to further stress the research models by REP,ACING the forward-looking information {WJB(t)} with the ,INEAR CSMBINATISNS of the forward-looking information(s): (a) {(μA ± σA WJB1(t) ± σA WJB2(t))} , μA is PSSITIVE INFINITESIMA,, σA ≥ 1 , WJB1(t) is a ,SG-,SGISTIC (3P) and WJB2(t) is a CAUCHY; (b) {(μA ± σA WJB1(t) ± σA WJB2(t) ± σA WJB3(t))} , μA is PSSITIVE INFINITESIMA,, σA ≥ 1 , WJB1(t) is a ,SG-,SGISTIC (3P), WJB2(t) is a CAUCHY and WJB3(t) is a BURR (4P). The paper tested the performances of TWS and THREE-DIMENSISNA,TYPES of the proposed Jameel’s stressed closed form solutions with the aid of Chevron Corporation (CVX) Stock data extracted from yahoo finance, time series from 2014 – 1991. The results were fascinatingly interesting, impressive, viable and reliable, sophisticated, and complaint with IFRS 9 since they incorporated MSRE forward-looking information(s) and Economic forecasts of the future macroeconomic parameters thereby minimizing the differences between market prices and models prices.

Finally, the paper round up with the test of performances of the proposed 2 and 3-dimentional stressed closed form models using Chevron Corporation (CVX) Stock data extracted from yahoo finance, time series from 2014 -1991.

Linear Combination
In Mathematics, a Linear Combination is an expression constructed from a set of terms by multiplying each term by a constant and adding the results.A Linear Combination of    is given by  +  .

Jameel's Criterion:
Under this criterion, we run the goodness of fits test such that: i.We accept if the Average of the ranks of Kolmogorov Smirnor,Anderson Darling and Chi-squared is less than or equal to Three (3) ii.We must choose the Probability Distribution follows by the data ITSELF regardless of its Rankings iii.If there is tie, we include both the Probability Distributions in the selection iv.At least Two (2) Probability Distributions must be included in the selection v.We select the most occur Probability Distribution as the qualify candidate in each case of test of goodness of fit.

Discussion
The Author set the Log-Logistic (3P) parameter  to be 1 and Burr (4P) parameters  = 1,  = 1,  = 1,  = 1   = 2 thus collapsed to almost Normal.With HIGH VALUES of , , , , , and , the proposed TWO and THREE DIMENSISNA, Jameel's Stressed Closed Prices TYPES will effectively approximates the REA, PRICES or the difference between the MODEL PRICES and REAL PRICES will be very NEGLIGIBLE or even possibly ZERO at many points in time  as according to Proposed Jameel's Assets Approximation Theorem (JAAT).
More so, if we could be able to Runs the Goodness of Fit Tests using Jameel's Criterion axiom known such as the RANKS of Kolmogorov Smirnov (KS) Test, Anderson-Darling Test, Jarque and Bera (JB) Test, Shapiro Wilk (SW) Test, Cramer-Von Mises Test, Pearson Test, Lilliefors Corrected K-S Test, D'AgostinoSkewness Test, Anscombe-Glynn Kurtosis Test, D'Agostino-Pearson Omnibus are all UNITY (1) of the underlying Stock Returns then the proposed TWS and THREE DIMENSISNA, Jameel's Stressed Closed Prices TYPES will coincide at finitely many points with the REAL PRICES.Also, as according to the study conducted by Jamilu (2015) where he considered Eleven (11) out of Fifty ( 50

Figure 2 .
Figure 2. Jameel's Transformational Diagram for IFRS 9 Compliance ) Jameel's Stressed Closed Form Solutions considering Stocks Geometric Brownian Model, the Author considered Chevron Corporation (CVX) Stock data extracted from yahoo finance using Time Series from 2014 -1991.Thus, the data distribution Mean equal 0.000326, Standard Deviation Published by IDEAS SPREAD equal 0.015761, the Annual drift of the year preceding 2014 (2013) equal 0.000466 and the Annual Volatility of the year preceding 2014 (2013) equal 0.008325.Hence, µ  = 0 Figure 3.
) World's Biggest Public Companies by FORBES as of 2015 Ranking regardless of the platform in which they are listed, Number of the Research Companies, Time Series (Short or Long), Old or Recently listed Companies using the time series from 2014 -2009 with the aim of finding the Best Fitted Fat -Tailed Stocks Probability Distributions using Jameel's Criterion.Jamilu (2015) using Jameel's Criterion obtained Log-logistic (3P) as the First, Cauchy as Second and Burr (4P) as the Fourth, however, with ever changing of Information and Communication Technology, Natural Disasters, Terrorism, Political and Economic Risks, Strikes and other latent Risk Factors, one may uses Jameel's Criterion to obtain different Sets of NON-NORMAL, FAT-TAILED PROBABILITY DISTRIBUTIONS RANKING according to Jameel's Criterion to calculate different stressed closed form prices of different DIMENSIONS for IFRS 9 Compliance.Furthermore, that we could TEST µ  as ARITHMETIC Means of only positive Arithmetic Means of the Underlying Asset Return and Returns of the future economic forecasts of macroeconomic parameters, otherwise should remains GEOMETRIC MEANS as defined and used in the paper.