T
the luncheon meat
Guest
i chose 8 without neeting, and 0 for netting CCP, all becos i dun rmemeber how to do
Jiew Kwang
Member
Hi guys, I've just taken the Part 1 exams last week. I wonder if anyone can share the difficulty and spread of questions in level 2?
For instance, i found level 1 to be ~70% math, 30% qualitative. Does anyone remember roughly if this is consistent with Part 2 as well? Also, after taking the Part 2 exams, what strategy would you advice me on how to approach level 2 exams in a more exam effective manner? Would love to hear your views!
Thanks and regards,
jiew kwang
For instance, i found level 1 to be ~70% math, 30% qualitative. Does anyone remember roughly if this is consistent with Part 2 as well? Also, after taking the Part 2 exams, what strategy would you advice me on how to approach level 2 exams in a more exam effective manner? Would love to hear your views!
Thanks and regards,
jiew kwang
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New Member
I calced on the netting question 8 w/o CCP and 3 (or 4, i don’t remember) with CCP
I believe with CCP it should be zero as thts the whole idea of having a CCP. As per definition CCP is responsible for making investors whole, though it does not happen due to margin, netting and other similar mechanisms.
I believe with CCP it should be zero as thts the whole idea of having a CCP. As per definition CCP is responsible for making investors whole, though it does not happen due to margin, netting and other similar mechanisms.
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@ Manish..
Understand your point of view but the question was how much was due to "C". So, if there is something due to "C", that should be made good by the CCP.
Understand your point of view but the question was how much was due to "C". So, if there is something due to "C", that should be made good by the CCP.
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@ Manish..
Understand your point of view but the question was how much was due to "C". So, if there is something due to "C", that should be made good by the CCP.
Understand your point of view but the question was how much was due to "C". So, if there is something due to "C", that should be made good by the CCP.
Question was ctpy credit exposure. C is due 8 no matter what. Vs. a CCP the ctpy credit exposure is considered zero by definition.
You know, i didn't feel too bad coming out of the exam, but the more questions people go over, the more questions it seems like i missed.
As for the making, I would say no more than 10-15% of the level 2 exam required anything past very basic math. It was not quantitative at all, much more qualitative.
As for the making, I would say no more than 10-15% of the level 2 exam required anything past very basic math. It was not quantitative at all, much more qualitative.
Jiew Kwang
Member
@braxxus: Thanks for sharing the information. I myself having just taken the part 1 exams, discussed questions over the forum and found that i have made a couple mistakes here and there..
What would you have done differently in your preparation on hindsight? Anything you felt you should have revised more? I just had a glance of the part 2 and found that the maths was messy and the qualitative aspects were lengthy! Seems like i have to strategize a bit if I were to take it together with cfa..
regards,
jiew kwang
What would you have done differently in your preparation on hindsight? Anything you felt you should have revised more? I just had a glance of the part 2 and found that the maths was messy and the qualitative aspects were lengthy! Seems like i have to strategize a bit if I were to take it together with cfa..
regards,
jiew kwang
I studied completely from Bionic Turtle this time around, so I did not read any of the texts. I would have taken the November exam instead of this one is the only thing I would have done differently. Not all of the questions are done in time for this first exam, so I was not fully prepared in certain areas. The math in level 2 was not bad at all and if you read fast, the exam does not take very long. There is not nearly as much pressure as for Level 1. I guess I would have read the texts, but I didn't want to spend the extra money on them. If I fail, then I will purchase them.
I truly believe that the Level II is easier than any of the CFA exams, but the Level I is MUCH harder than any of them. The hard part is passing Level 1.
I truly believe that the Level II is easier than any of the CFA exams, but the Level I is MUCH harder than any of them. The hard part is passing Level 1.
T
the luncheon meat
Guest
ya regarding the CCP netting cp exposure of 0 or 3, i really dk .. i hope it's 0
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I dont think its zero with netting. I dont remember the exact figures but the concept of netting is to net the receivables of the counterparty with the payments and is not at all always zero.
Yossarian
Member
Does anyone remember the question where analyst gives a formula for the Liquidity cost considering exogenous risk and then two statements were given
i) Analyst is ignoring risk i.e. effct on LC due to its own trade
I cant recall the 2nd statement...
It was asked which is/are right/wrong..
i) Analyst is ignoring risk i.e. effct on LC due to its own trade
I cant recall the 2nd statement...
It was asked which is/are right/wrong..
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I agree with nadk08...the concept of CCP doesnt take away liability of CCP, but ensures the CP/CM gets the due.
Probably only the question paper setter can tell us the right ans and think no point in debating over this.
Would be better if some1 comes up with diff question
Probably only the question paper setter can tell us the right ans and think no point in debating over this.
Would be better if some1 comes up with diff question
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Vincent and manish, thanks for your answers. I did not have that topic covered.
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Does anyone remember the question where analyst gives a formula for the Liquidity cost considering exogenous risk and then two statements were given
i) Analyst is ignoring risk i.e. effct on LC due to its own trade
I cant recall the 2nd statement...
It was asked which is/are right/wrong..
i) Analyst is ignoring risk i.e. effct on LC due to its own trade
I cant recall the 2nd statement...
It was asked which is/are right/wrong..
I think second option was " spread can change during stress time" or something like that.
Yossarian
Member
Yes thats correct...
now what you people think the answer was ..I think this is exactly the questions where GARP make sure that FRM L2 is not as easy as we think because as far as I remember the question said the the analyst considered stress time...
now what you people think the answer was ..I think this is exactly the questions where GARP make sure that FRM L2 is not as easy as we think because as far as I remember the question said the the analyst considered stress time...
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New Member
Yes thats correct...
now what you people think the answer was ..I think this is exactly the questions where GARP make sure that FRM L2 is not as easy as we think because as far as I remember the question said the the analyst considered stress time...
now what you people think the answer was ..I think this is exactly the questions where GARP make sure that FRM L2 is not as easy as we think because as far as I remember the question said the the analyst considered stress time...
One thing I noticed - it was (u+sigma) and not (u+ k. sigma). not sure if that makes the difference so i marked both correct.
I agree now it does not look as easy after discussing questions. there is some trick in almost every question.
T
the luncheon meat
Guest
i make only comment is right, and the other is wrong, as the spread is endengous and this is already explicitly impelemented by the formula mu and sigma .... else it would be only constant spread isn't it?
with regards to the spread confidence, i though abt it and concluded it could be just '1'.
with regards to the spread confidence, i though abt it and concluded it could be just '1'.
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New Member
i make only comment is right, and the other is wrong, as the spread is endengous and this is already explicitly impelemented by the formula mu and sigma .... else it would be only constant spread isn't it?
with regards to the spread confidence, i though abt it and concluded it could be just '1'.
with regards to the spread confidence, i though abt it and concluded it could be just '1'.
My logic was that K is the factor that can be changed to reflect market conditions etc. so in case of stress you can increase K to get more LC. If analyst has already decided that K=1 then he doesn't have the flexibility of increasing LC if market condition changes.
But as someone said only paper setter can answer these questions.
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