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During my preparation, I've scored pretty well (70%+), whether on the BT mock exams or the Schweser practice exams but also on the GARP practice questions. Also it always took me less time to do them (Kaplan 2014 Final Review exam, I scored 80% in 2h40). So I felt pretty confident. I found the...

The cash flows in a 3-tiered securitization can be broken out into the inflows from collateral and the outflows to the investors. The terminal cash flows in the final year are the last interest payment plus principal and revovery of defaulted assets. Suppose the original loan pool included 50...

This LCR is still very unclear to me. If a custom deposits $1 million in my bank. Let's assume it is stable. => the cash outflows increase by 3% draw down * $1 million = $30,000 ? However if it is a short-term deposit for one month, the draw down rate is 100% => cash outflows increase by $1 mn...

During working experience, I've seen different approaches to job titles. One employer has a Risk Control department and calls it's staff: risk analyst and senior risk analyst on the market risk side; and credit risk analyst, credit risk manager, senior credit risk manager on the credit risk...

Hi David, I miserably failed when taking the Practice Exam 2014 (25 questions, download from GARP library) 12/25..... altough I scored above 70% when doing all BT Mock exams. Do the BT Mock exam need an update or do they really reflect the exam level? I might just had a bad day, but I am a bit...

1.C 2.C 3.A 4.C 5.C Bonus 4: T_DV01_max = 1/delta_y * ln [(y + delta_y) / y] where y is the yield 5% and delta_y the increment 1bp

1.C 2.A 3.C 4.B 5.D

Thanks a lot David. For question 3, my understanding is : straddle's 95% 1-day VaR = straddle's delta * stock 95% 1-day VaR straddle's delta = +0.7 - 0.3 = 0.4 stock 95% 1-day VaR = z_95% * stock's volatility * stock price = 1.645 * 1% *$100 Where do you get the 3% from?

Hi Melanie, David, I am struggling with question 3. I can't get the right answer. Could you please give some hints/details? For question 5, is this correct? We can approximate the binomial with the normal distribution (for backtesting purpose). Then cutoff = z_99% * SQRT[ p*(1-p)*n] + p*n =...