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Exam Feedback FRM Part 2 (May 2015) Exam Feedback
- Thread starter hamu4ok
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- may 2015 p2-exam-feedback
In Frankfurt we had a clock and I think its very bad that some sites don't. I would be pissed too. Also the proctor specificially said, that we can write in the booklets as much as we want to, it just won't be graded.
I was surprised by the lack of calculations. Some of the topics that took a lot of room in the readings were barely mentioned e.g. Merton model. I have a general good feeling about my results, but there were so many questions that I was only partly sure about, that I can't be 100% confident.
There was a question about 12 PC for a equity long position and the consequence of replacing some of it with other stock. Did somebody solve that?
I was surprised by the lack of calculations. Some of the topics that took a lot of room in the readings were barely mentioned e.g. Merton model. I have a general good feeling about my results, but there were so many questions that I was only partly sure about, that I can't be 100% confident.
There was a question about 12 PC for a equity long position and the consequence of replacing some of it with other stock. Did somebody solve that?
I found the exam pretty hard. I agree with ami44 that a lot of the material was not mentioned such as the Merton model, no SAR, not much on securitization and not much on IR models from Tuckman. A lot of tricky qualitative questions with no clear cut answers. Full coverage (I think possibly 8 questions) on current issues (albeit these questions were not difficult). Out of 80 questions, I think I am sure on 45, was between 2 answers on 34 and 1 was a wild guess. Doesn't sound great, but not too bad either. I'll have to wait and see.
among the answers
will decrease diversified var; decrease RAROC; decrease Sharpe Ratio; have 14 PC to account for 85% of variance
I think the fact that watches weren't allowed and there was no clock in the room was not too frustrating as I felt there was plenty of time to go through the questions. I did have to go to the toilette after the first hour and although I lost 5-10 minutes there, it didn't harm. All that on the contrary to Part I, where the time was just enough for 100 questions and there was no time to waste whatsoever.
I think we all had a different numbering. But i came to the conclusion, that it was contrary to the old questions. I choose light tails as an answer and the old question if i remember correctly had heavy tails as an answer. I might be wrong though. What was your answer?
I chose heavy tails, but also hesitated between light or heavy.
I chose heavy tails too and if I remember the shape correctly and seeing the practice exam now, it was wrong. ami44 is correct.
Exactly that one. I choose the first, because i thought whatever decreaes the RAROC also decreases the sharpe ratio and why 14 PCs should be necessary and 13 wouldn't be enough, was not clear to me. But that was wild guessing.
I believe your solution is correct. I think though that the the spread was 420 basis points, therefore hazard rate 0.07 and right answer is 13%. I think the rest of the answers were significantly smaller percentages (i.e. less than 8%). Can you remember? (As your answer gives 14.2%)
yes it was 420 and lambda = 7%
Hi,
The exam was toooooooo theoretical for me with only 5 numerical questions! I was surprised!
I will probably take the exam in November so, any advice is welcome to be prepared that time! I completed the Schweser, 70% of the mock exam, average of 65% of Q bank and between 70 and 80% for the 2 mock exams from the book. I also had 16 right answers from the garp mock exam. I did all the drill topics from bionicturtle, but it was not enough because I did/do not master the concepts..
Good luck!
The exam was toooooooo theoretical for me with only 5 numerical questions! I was surprised!
I will probably take the exam in November so, any advice is welcome to be prepared that time! I completed the Schweser, 70% of the mock exam, average of 65% of Q bank and between 70 and 80% for the 2 mock exams from the book. I also had 16 right answers from the garp mock exam. I did all the drill topics from bionicturtle, but it was not enough because I did/do not master the concepts..
Good luck!
Looked like collaterilized interest rate swap (with a threshold) to me.
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