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The model depends on the scaling factor and the long run mean. For this question the long run mean was above the short rate so the curve was upward sloping. https://i2.wp.com/www.r-bloggers.com/wp-content/uploads/2010/04/vasicekYieldCurves.png?ssl=1

IFRS 9- I did not know this one - if NPL for IFRS was an option that’s right - I didn’t put that though. AML - I thought this was straight forward - nothing made sense but the beneficiary. SMA - didn’t have a clue I put the one about the loss model. As for the other questions 1- random...

I can’t remember everything in detail but the questions I spent along time on were all cross chapter answer types of questions and there was a bunch of them! For example there were 4 answers - one would be related to DVA, one would be related to RAROC, one would be related to a Basel policy and...

What is GARPs rules on talking about the exam? We had to sign something about not talking about receiving information about the exam before starting - and now I just realized I never signed! My proctors were very specific about what to do and they never said to sign the front of our exam. I...

I remember it being written different . That ES (p1 + p2) <= p1 + p2. Probably read it wrong though. Although I don’t think var(p1 + p2) >= p1 + p2 makes sense. Take two continuous distributions and add the variance with negative correlation and your inequality fails.

This was really helpful. Perhaps in the note you could change it to [if three] PV + Coupon Payment? The 0.25 was confusing.