Nov 2013 FRM Level 1 feedback

[Adelaide]

Yes, I also saw such arguments in J.Hull chapters. In fact, these two choices were confusing! I'm not confident that I have marked the answer in respect to Libor quotation in major currencies. But more likely, I think I have marked the final one.

Regarding the proxy advantage of overnight swap index over Libor, recently some investors and analytics considered or argued it to be as proxy especially during the recent crisis. So, as a whole OIS is not recognized to be as proxy. As a consequence, LIBOR is widely used proxy for valuation and pricing.

really confusing answers.....

 

[Sabit Rahimov]

Does anyone remember whether there was a question on BSM assumptions?

The question in respect to BSM assumption was unlikely.. But for the CAPM assumtion, there was something..

 

[a.lesnar]

The question in respect to BSM assumption was unlikely.. But for the CAPM assumtion, there was something..

thank you: actually I do not remember exactly that question.
On the LIBOR question, however, I have answered like you, so that LIBOR is calculated and expressed with respect to different currencies: this is a very feasible solution that is confirmed by all statistics and also by official sources

 

[Adelaide]

actually I've purchased GARP books and checked on the weekend - it is stated that OIS is a better proxy of the risk free rate and nothing wrt to tthe 5 currencies...

 

[a.lesnar]

actually I've purchased GARP books and checked on the weekend - it is stated that OIS is a better proxy of the risk free rate and nothing wrt to tthe 5 currencies...

well I do not remember precisely the options but I really can tell you that even if you go on the WSJ website or FT or whatsoever you will see that the LIBOR is quoted for different currencies
So at least that option could not be taken as false, because actually the LIBOR really trades in more than one currency

 

[Sabit Rahimov]

I also don't remember the other options except for libor quotes in different currencies. Yes, one of the options was indicated statement regarding the OIS and Libor, but I'm not sure that option indicates precisely the proxy advantage of OIS over the Libor. Even it would be incorrect statement.

 

[Sabit Rahimov]

there was a question that asked which of the following is the unit of measurement of variance. ) what was your options? In fact it was easy so much...

 

[a.lesnar]

man I do not remember but may be it was a question on the coefficient of variation?

 

[Sabit Rahimov]

man I do not remember but may be it was a question on the coefficient of variation?

Coefficient of variation is unitless! there were different units of measurement.... but one option was with square of the unit (%^2), that is was my option. all other were without square.

 

[a.lesnar]

Coefficient of variation is unitless! there were different units of measurement.... but one option was with square of the unit (%^2), that is was my option. all other were without square.

well I was just trying to guess, I really have no idea of that question
Can you please kindly remember some options, but most importantly what was the question about?

 

[a.lesnar]

I remember there was one question on R square, I do not remember all words unfortunately but I remember there was a reference on a R square value of 0.75
I fully understand that this value is not very close to 1, but do you believe that a regression with an R square at 0.75 can be significant?
Thank you

 

[rua]

waiting the test result is very nervous

 

[Stunner]

Hi, can anyone email me the schweser notes pdfs for FRM Levels 1 and 2, 2013 on my mail id, [email protected]? Would be really grateful for any help. Thanks in advance!

 

[rua]

Hi everybody,

I saw in the other topics BT's members talked about FRM results, I find that term "quartile". What does "Quartile" mean?

If I have the "2nd quartile" mean that I have 26%-50% correct answers comparing to the total questions in the exam or I have the 26th-50th correct answers comparing to other candidate's results?

 

[monsieuruzairo3]

Hi@rua
Quartile score basically indicates your result in a quadrant in the X-Y axis. If you score first quartile in say Quantitative analysis, it means you are in the first quadrant(rightmost-topmost) which means you are in the top 25% of the total canidates (you are in top 25, if 100 candidates gave the Quant analysis section). Similarly for other sections you will receive a quartile score indicating which quadrant you lie in. If you score second quartile it means you are between 25-50%(excluding 25 but including 50).

 

[krenate]

Hi guys, I have passed, I am so happy...Happy New Year!