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A common criticism of GARP and FRM I’ve heard is that the source text is a collection of financial textbooks with various different authors that use different terminology or contradict each either. A lot of comparisons are also made to the CFA Institute’s text which is self contained. It seems...

I wish this forum had a quote button. @Amarnadh D From what I read there should be no bias on the recency of the experience, only the quality of the experience. Financial risk is broad and operational risk management certainly is a subset of that risk. Maybe post a draft 4-5 sentences you...

From what I read from past threads, the work verfication process follows FIFO queue, so you might as well prepare your statement to submit ASAP after results are released. I believe it is 4-5 sentences on how you use financial risk in your job on daily basis.

The comments are interesting on the ZeroHedge articles. I suppose I am fatigued from the incessant doomsday reports, so it would take some extraordinary evidence to convince me. It does seem interesting though.

I took CFA L1 it in June 2019 right after FRM 1 in May; passed both. I also found CFA L1 on the easier side, but it did have more content than FRM. CFA L1 does have a lot of questions (240) so each questions seems worth less. In CFA L2 I believe total questions is 120 and they present them in...

I believe official release is January 2nd. Getting 45-50 out of 80 for minimum pass sounds reasonable.

Do you mean die or dice? Empirical by definition is experimental, i.e. what is observed in the real world. The probability of rolling a 3 on a six sided die would be 1/6 assuming it’s a fair die, but you can experimentally roll it 100 times and see 3, 18 times, giving you an empirical...

Sample mean is an unbiased estimator for the population mean, so you divide by N and not N-1. Was the question perhaps about sample variance or sample standard deviation?

OK, should be everyone since I doubt they even graded the exams yet or decided on cutoff. I got email too.

What do you mean? They emailed you something?

I wouldn't put it under an educational degree like master's because it's not that. Once you have certification, maybe have a certifications section in your CV. You can also add FRM to your name, e.g. Peter Burke, FRM (where I made up last name -- actually it's from White Collar). If you use...

Just tried it and got answer of 60.65, was that a choice? I tried a “wrong” approach and got 167.06. How are you getting 113? option price = e^(-r_f*t) [p*f_u + (1-p)*f_d] where: r_f = risk free rate t = time to maturity p = risk-neutral probability of up jump f_u = value of option for up...

On the QQ Plot, I put the choice mentioned in p.1 of this thread which read something like: "the tails and central mass of the distribution exhibit different slopes". Slope less than 1 (or different than 1) does not necessarily imply normal distribution is not valid. All a slope different than...

I think they are right to use the formula, but the phrasing of the question seemed a little strange. The source: https://static.norges-bank.no/contentassets/432aa1c401a243f9b08a3f3aecd4c71d/working_paper_3_17.pdf (P.12 in article) So I think (100/50)^(3/2) ~ 2.8 is valid; these were choices I...

Mean Reversion was 68% implied by regression. Autocorrelation = 1-0.68=0.32. Note autocorrelation measures degree of correlation to past values. Stronger mean reversion implies lower autocorrelation. Source is Messiner chapter 2 of correlation risk modeling.

FWIW, part 2 is getting a significant overhaul in 2020. They plan to reduce weights of the 3 big risks by 5% and introduce new section worth 15% called “Liquidity and Treasury Risk”.

Do you know which ccp reading mentioned that formula? I was curious about that question as well. Do you know the logic behind why 3/2 power?

Yes, I got that answer as well. Current Revenue was 7%, which gave pre-tax RAROC of 4.5/30 = 15%, dropping revenue to 6% pushed numerator to 2.5%, which gave pre-tax RAROC as 2.5/30 = 8.33%. This was below their 11% minimum. All the other adjustments had pre-tax RAROC > 11%.

They check everyone I think. I and everyone around me had IDs checked while taking the exam both in May and November. So you weren't singled out. That's why they ask you to leave out your ID during the exam. If you have to go to the bathroom they take both your exam paper and ID in case you...

It was interesting. I was not surprised by any question, but there was a good amount of reading. It seemed easy to lose track of time if you got stuck on the numerical problems. My 2 cents: 1) Current Issues is free points (yes, there is free lunch). I think in total the readings for current...