FRM Level 2, Nov 2012: Expected cutoff /passing score ( out of 80)

N

nageshtheone

Member
Hi all Part 2 takers,

Congratulations on surviving the four hours. I found them extremely stressful and demanding. Im not good at memorizing stuff, hence found the Part 1 exam easier than this one.( cleared in May 2012).

When I asked different people about the possible cutoff, I get opposite views. Some say that the Part 2 cutoff is usually low. Some say that the November Part 2 cutoffs are higher than May, because many CFA and management guys appear.

It would be great if you could share your thoughts on the possible absolute passing score (out of 80).

Regs
Nagesh
 
S

ShaktiRathore

Well-Known Member
Subscriber
Putting the benchmark at 70% out of total score of 80 we get 70% of 80=56. Hence to be on safer side you would need at-least 56/80 to pass the exam.But depending on the difficulty of the exam you can expect a downside of at most 10-15% which makes the passing score 85-90% of the total benchmark passing score 56 which is (85% of 56)-(90% of 56)=47.6- 50.4=47-51 which should be where the passing score must lie. I have made the adjustment of 10-15% and you can make this more or less based on the difficulty of the exam. I f you think the exam was relatively difficult than make the adjustment as 10-20% if you think it was on easier side than make it 5-15%. Its like valuation of securities you want to determine the exact value of security but it all depends on how accurate your assumptions are.
Based on internet research i came to know that historically if i am not incorrect than the average passing score has never been greater than 70% of the total marks.So if you are falling in the range 47-51 you can hope to pass.

thanks
 
S

[email protected]

New Member
Hi, I gave the FRM L2 and am v poor at memorizinig the rules especially the BASEL tier, groups, MVAR rules etc and have high chances to miss it this time.

I did a lot many wrong in the exam, due to my poor memory, I think given the difficulty the passing score will be 70% accuracy or 56 questions right. My score to be around 50%.

The exam was easy and predictable, I think after doing study 2 times more, espcially of BASEL I will have good chances.

Here is plan on how to study while regiving:
  1. BASEL Norms need a lot of understanding than memorizing. The issue is that you cannot memorize all the things but if you understand it, then life becomes easy.
  2. Liquidity and other requirements needs to be linked with a banks BlanceSheet.
  3. VAR and how to adjust it for Market risk, multipliers, Max formulas, and all variations of play with VAR for all 3 risk is an imp aspect.
  4. Wrong way and right way risk is an imp area.Complex questions on where it would be and where it would not be.
  5. Neeting is an imp concept especially withe the CVA computations, addition of third party makes things intresting, I am not sure but that way the middle party goes out of final 2 parties have exposure in the example.
  6. The way to pass the exam is to do Operations risk BASEL as I think that the part had a lot more weightage than others, although I think I feel that ways because of the toughness of OR.
  7. Part 4 (investment & current issues) is not a tough thing, questions are easy.
  8. Part 1 of Market risk is all about playing with VAR for market risk using BASEL. F(Var, ...) F2 (VAR...), these kind of issues create trouble. Especially when they say a new rule comes into play which needs intuition and logical understanding of implementation.
  9. Part 2 is also the same, learning to play with VAR adjustments. For credit risk we need to focus more in requirements. Credit risk is how bank would cover the loss due to loans, and the capital requirements.

Anyone can pass it with Schweser.

best of luck!
 
M

-MaNi-

Member
[email protected] said:
Hi, I gave the FRM L2 and am v poor at memorizinig the rules especially the BASEL tier, groups, MVAR rules etc.
I did a lot many wrong in the exam, due to my poor memory, I think given the difficulty the passing score will be 70% accuracy or 56 questions right.
The exam was easy and predictable, I think after doing study 2 times more, espcially of BASEL I will have good chances.

Here is plan on how to study while regiving:
  1. BASEL Norms need a lot of understanding than memorizing.
  2. Liquidity and other requirements needs to be linked with a banks BS.
  3. VAR and how to adjust it for Market risk, multipliers, Max formulas, and all variations of play with VAR for all 3 risk is an imp aspect.
  4. Wrong way and right way risk is an imp area.
  5. Neeting is an imp concept especially withe the CVA computations.
  6. The way to pass the exam is to do Operations risk BASEL as i think that the part had a lot more weightage than others, although i think i feel it because of the toughness.
  7. Part 4 is not a tough thing, questions are easy.
  8. Part 1 of Market risk is all about playing with VAR for market risk using BASEL.
  9. Part 2 is also the same, learning to play with VAR adjustments. For credit risk we need to focus more in requirements.


Anyone can pass it with Schweser.

best of luck!
Click to expand...

Blasphemy! We do not speak such words here! :eek:
 
sleepybird

sleepybird

Active Member
I'm using my level 1 experience here. I took level 1 in May and and my feeling wasn't great at that time - i counted rhe number of questions i wasn't sure of he answers and my gut feeling told me I would score ~60%, close to the mean score I got from the practice exams I had done for L1. And guess what? I passed L1 with 1st quartile. This tells me the passing score for FRM is low, much lower than CFA, which is also consistent with the higher passing rate than the CFA.
 
varun34by02

varun34by02

Member
sleepybird said:
I'm using my level 1 experience here. I took level 1 in May and and my feeling wasn't great at that time - i counted rhe number of questions i wasn't sure of he answers and my gut feeling told me I would score ~60%, close to the mean score I got from the practice exams I had done for L1. And guess what? I passed L1 with 1st quartile. This tells me the passing score for FRM is low, much lower than CFA, which is also consistent with the higher passing rate than the CFA.
Click to expand...

FRM - I May 2012 was among the toughest part 1 has been. That led to low pass scores. Still only 47% passed. Does CFA have 47% pass rate ? I thought its more.
 
S

ShaktiRathore

Well-Known Member
Subscriber
Generally the pass rate for FRM part II is on the higher side at around 55% while for part I its a little lower at around 45%. But it does not mean that passing the part II is easier than passing the part I. Hope to see all of you pass.

thanks
 
T

troubleshooter

Active Member
This is based on my personal experience of taking L2 in May 2012. I most certainly got 20 wrong. For the remaining 60, I can say with great confidence that I got 56 right. I thought I had 50-50 chance at passing. When the results came out, I was pleasantly surprised to see my self in the top quadrant in everything. So this might be overly optimistic but passing score is way lower than 70%. I think it's somehwere between low 50s to hight 50s %...
 
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