Exam Feedback May 2017 Part 2 Exam Feedback

[vistag]

but if the correlation is low meaning people are not motivated to move their deposits then there will be no impact on LCR.
secondly, LCR is a short term measure and no correlation of last two years means things are static.

LCR is a stress test measure,so we cannot use the 2 years low interest rate environment and no correlation at its facevalue. The question says there is movement but in last two years there is no correlation. Since LCR is a stress measure we cannot use 0 correlation in a benign environment as a reason for LCR not impacting is my thesis. If we use 0 correlation as basis it as wrong as the mistake made by risk analysts during 2008 crisis in constant correlation analysis in risk estimation of mbs tranches

 

[bpdulog]

yeyyy... so, may be I did mark it right ! Anyways, I tried to put myself in that situation, if I had been paid low rates for a whole lot while and suddenly other banks are offering a higher rate, will I be motivated enuf to move my deposits or not..

Interesting, I did not read the question the same way. My thought process was that the depositor may have been lured by higher rates from competitors, but chose to stay at the same bank, so these deposits were pretty "sticky." Hence, when rates rose these deposits were unaffected. Given the time constraint, there was no time to ponder the underlying drivers. You pretty much just had to go with your first line of thought, and if it seemed reasonable, move forward to the next question.

 

[cj9101]

I hv seen ppl passing with 22344 also..

wow... is that possible?
that means he got almost half of the exam...

 

[Keshav]

Hi all,

Basis history the average passing rate has been around 55% candidates clearing part 2. Now expecting on the minimum cutt off score i feel though the exam had medium level of difficulty i believe #40 would be the fair bet if garp plans to maintain 55% passing rate..just my guess....bcz i remembered in level 1 i was not feeling great as i expecting 60+ out of 100 but scored 1121..

How do you know your score? they just tell you the quartile.

 

[ashish_pandey]

How do you know your score? they just tell you the quartile.

I said i was expecting...

 

[FM22]

Is there any 1 who repeated frm l2 this time. Was it difficult frm last time.

 

[FrmL2_Aspirant]

as per feedback from other candidates, May and Nov'16 was much more difficult than this time

 

[cj9101]

as per feedback from other candidates, May and Nov'16 was much more difficult than this time

Do you know what was the cuttoff?

 

[FM22]

What's the plan for Nov 17 paper.?.?
One she start study now or shall wait for July 5th .... The result date?

 

[kevolution]

Estimate of the raw cutoff scores:

This is just my estimate.

These are the parameters. Pass rate for Pt 1=45%, for Pt , 55%.

GARP, in the past, had mentioned in its website (not sure if still valid) , that they take the top 5% and base t h e cutoff mark on that score.

On a 100-qn test, assume 95th percentile is 90 correct questions (realistic).

Let m=mean, s= std dev

Assuming normal dist, (90- m)/s=1.64
Now, in most standard tests, like SAT, GRE, etc, s = m/5.

Example: in SAT, if the mean is 500, 600 is 1 std dev.

Let P = passing score w h ere the pass rates are 45% for Pt 1 and 55% for Pt, we can now solve for P.

I solved this and came up with:

Raw pass score for Pt 1 = 69.5 (out of 100)
Raw pass score for Pt 2 = 52.8 (out of 80)

Just my estimate folks.

Good luck to all.

Mm... I doubt this is correct. I passed Part 1 with Quartile 2s and I knew maybe only half the questions (some even may not be right). 1/4 educated guesses and 1/4 blind guesses.. so unless I somehow guessed every question correct, my raw score would not likely have been >65.

I always thought that they would look at the distributions as a whole and roughly pass 50-60% of the test takers based on the last clustering of scores before the cutoff.

 

[pikachuu]

For PI, I think I got 65+ and passed with Q1s. I do not think SAT or CFA results can be some good proxies for FRM exams. Just as with any model, the results are only as good as the inputs. Any assumption is just assumption.

 

[cj9101]

For PI, I think I got 65+ and passed with Q1s. I do not think SAT or CFA results can be some good proxies for FRM exams. Just as with any model, the results are only as good as the inputs. Any assumption is just assumption.

for all Q1?

 

[ilovemuffins]

stop with your search for the cut off, cj9101. I really think it's getting obsessive. many have already told you that all are just their own estimation and assumptions.

 

[arun.27]

yeyyy... so, may be I did mark it right ! Anyways, I tried to put myself in that situation, if I had been paid low rates for a whole lot while and suddenly other banks are offering a higher rate, will I be motivated enuf to move my deposits or not..

Was it term deposit or demand deposit (Demand deposit I guess). Demand deposits have always been sticky, irrespective of the interest rate regime, that's why Basel has allocated 95% and 90% for stable and less stable deposits respectively in NSFR ASF. Additional info saying no correlation only makes the case stronger.

 

[cj9101]

When will the exam result comes out?

 

[KA1991]

When will the exam result comes out?

July 4th

 

[cj9101]

Is 45 out of 80 really a possible passing number?

 

[Roddefeller]

Is 45 out of 80 really a possible passing number?

Yes, it's possible, e.g. if the cutoff is at 44 out of 80. If the cutoff is at 46 out of 80 it will be difficult.

 

[arun.27]

%t

July 4th

5th July or the 4th?

 

[vivek.reddy92]

%t

5th July or the 4th?

The email I got said July 5th