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There was one question about lesson learnt for period 2007-2013 on commercial paper. I think I chose that option when investors are exiting the CP and ABCP, not sure if it is right?! Another question asked what will reduce systemic risk of global CCP, I chose require collateral which is...

The questions on CoCo are unfair as there is no where in the vignettes that it used the abbreviate term CoCo or describes the term, it is in short for Contingent Convertible and it is in the GARP AIM but then no practice question on any sources of the GARP reference books or notes have these...

Yes I hope the pass mark will not be too high, anyone can do 50% with full certainty on this exam is admirable! The exam test a whole lot amount of knowledge in 4 hours and I feel GARP should not add tricks and traps and confusing things such as long reading to make it even worse, in reality we...

Yes that's exactly right, it was an example in the GARP note

Anyone know what is the answer for the question about the percent of contribution of the asset manager by allocation of assets. There are 2 negative answer -0.69 and -0.3 and 2 positive answers, I got crazy by that qns, seem easy but no option is close to my answer!

Notional amount is 400. The question said that the correlation in table 2 is understated so which mean in reality the correlation is higher which lead to higher realized correlation. So bank as a buyer of the correlation swap will receive higher than 0.4m which is what it will receive if...

Found similar qns in a Chinese forum (unfortunately cannot post here as it is all in chinese). This is an extremely tricky qns, you need to count every billateral netting and reduce by the lower number X own Y 5 and Y own X 3 then net reduction through CPP is 3. Sum all these we got 7. Then due...

I am stuck with this question too, I was thinking if 5% of loss on 25 loans (1% recovery rate) then that should be time 1.645 but the answer does not match!

Btw only about 3-4 questions are similar to the Practice Exam by Bionic Turtle and about 4-5 questions are similar to the Practice Exam by GARP. This really caught me off guard as most of the questions seem like come from no where!

Here are the list of things tested as I remember: +Liquidity Duration + CCP (Heavily tested) + ES + Hedge Fund strategies (very hard question, list the disadvantage of strategies) + CoCo (3 questions) + Performance Attribution (very tricky one with asset allocation alpha) + Illiquid asset return...

holy cow, the Part 2 exam is the toughest exam ever, even though I passed level 3 CFA, this exam is way harder than than even the CFA level 2 and level 3. A lot of questions are item set with VERY long reading but only a small part of that is required to answer the questions. Many concepts was...

Could someone explain what is Parsimony and Nontriviality requirement in credit scoring model means?

Could some one explain to me how the N(d1) and N(d2) is computed in this question below? Let firm value (V) equal $1 billion with face value of debt (F) equal to $800 million. The debt is zero-coupon and matures in four years (T = 4.0). The riskless rate is 5.0%. The estimate of the volatility...

Could someone help me with this question: Q: The Bureau of Labor Statistics has just reported an unexpected short-term increase in high-priced luxury automobiles. What is the most likely anticipated impact on a mean-reverting model of interest rates? A. The economic information is long-lived...

Could someone explains and give some examples on these types of liquidity risk? I am not clear from reading the notes on the difference between the two. Thanks

I would appreciate if someone could explain in layman terms what is the Delta-normal method. Also could someone explain how the following 2 positions are equivalent: 1. A 1 year forward contract to purchase pounds for dollar 2. A combination of 3 positions: a) A short position in a US...