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My drawing is TERRIBLE but if I remember correctly C was within the frontier and B was outside to the left a bit. The new frontier with all 3 assets should move to the left a bit so B in the attached (you have to forgive the shodiness of the graph) should be the answer (IMO).

The thing that irritated me most about the London exams is the fact that the exam was not in the most central place which meant waking up extra early for most candidates to trek to the venue. Only to be greeted by a late start. That might not seem like much of an issue but those extra 30 mins of...

LOL. My choice was less reluctant but it does say in the notes that Drysdale clearly used false reporting to gain access to the funds - thats why I guess false reporting could be an option as well for D-dale. For the binomial dwn prob question I thought the options were 42%,48%, 40-somthing%...

I agree that you could read into fictitous and fraudulent accnting n reporting into all 3 but you could just as much read leverage into all 3. The word leverage is not specifically used but for AIB it is stated that Rusnak's positions were not small positions as expected but LARGE ones. For...

The AIB, Drysdale and Barings question was, in my mind, clearly High leverage. The Drysdale guys had £20mil capital and invested £300m (borrowed from Chase). Nick Leeson and John Rusnak also had extremely high leverage positions which led to losses. The COC question did give some context...

Guys on the GARP COC question the analyst did say he had little knowledge of the markets he was requested to build the model for as well as saying he couldnt promise when he could complete the model. Looks like he did his part and didnt violate COC to me. Regression graph had a clear pattern...

Backwardation - I agree about the option one. I was mixing up short calendar spread with long Butterfly profile (remnants of the Saturday's fried-brain-syndrome maybe?). I'm interested in seeing if other guys can remember a few other questions. Does anyone remember if there was a question on...

Hi All Just to touch on a few points that have been made. It is possible that I did put in a few questions from FRM part 2 because I took that exam as well. Question about volatility - A long straddle doesnt have the same payoff as a short calendar spread. Also, I'm 100% certain the question...

Hi All In the interests of cobbling together everything that has come before this post, I've compiled a list of the questions I remember along with the other bits n bobs others have remembered. So here goes: 1) 2 Step-American Put question (strike 40 I think). What is the price after 6...