We hope that everyone did well on the exam! We would love to hear any feedback that you have. How did it go? Did you encounter unexpected questions? Thank you in advance for any feedback you can provide!
Exam Feedback November 2016 Part 1 Exam Feedback
- Thread starter Nicole Seaman
- Start date
AlecMardirian
New Member
Same feedback as most of people had for the may 2016 exam. Wayy to hard, many unexpected questions and too tight on time. Expecting around ~55 hoping that would be enough to clear it.
Worth to mention, i ve studied (schweser) for around 450 hours and averaged 75->85 on GARP and schweser exams.
Worth to mention, i ve studied (schweser) for around 450 hours and averaged 75->85 on GARP and schweser exams.
Last edited:
Kasturi Chakrabarty
New Member
Hi same, I don't even know if studying made a difference. It was very hard. I think my brain switched off after 2.5 hrs into the exam !
king_bren777
New Member
Harumph! so yes a couple of curve balls. I blew up on my time management. a lot less of call put parity and bsm than expected.
A lot more fx and ul questions.
Oddball currencies. Inr. A South American. jpy.
Lot less var.
A lot more of expected shortfall.
My spotting ish bit me on the bum. A bit more practice across more of the key topics would have had me more comfortable.
There was gamma delta hedge question that threw me because they did not say what the position was? just gave deltas and gamma of two Options?
A commodity forward with convenience yield that asked at which point would pay to hold more inventory. I could not get my head around that one. in my mind it would be when the cy exceeds the rf and storage. none of the prices given tied to that.
Rate my chances as very slim to praying for a miracle.
There was a Brexit fx question which had me chuckling. Do we get Trump ones next Year!
And thanks to BT. Without them I would rate my chances as zero. Was speaking to another candidate on his second exam afterwards who was stumped by the ul question and not knowing how to calculate variance on the Pd. Wow. Poor guy. David drums that one into all of us.
A lot more fx and ul questions.
Oddball currencies. Inr. A South American. jpy.
Lot less var.
A lot more of expected shortfall.
My spotting ish bit me on the bum. A bit more practice across more of the key topics would have had me more comfortable.
There was gamma delta hedge question that threw me because they did not say what the position was? just gave deltas and gamma of two Options?
A commodity forward with convenience yield that asked at which point would pay to hold more inventory. I could not get my head around that one. in my mind it would be when the cy exceeds the rf and storage. none of the prices given tied to that.
Rate my chances as very slim to praying for a miracle.
There was a Brexit fx question which had me chuckling. Do we get Trump ones next Year!
And thanks to BT. Without them I would rate my chances as zero. Was speaking to another candidate on his second exam afterwards who was stumped by the ul question and not knowing how to calculate variance on the Pd. Wow. Poor guy. David drums that one into all of us.
trivzca
New Member
Harumph! so yes a couple of curve balls. I blew up on my time management. a lot less of call put parity and bsm than expected.
A lot more fx and ul questions.
Oddball currencies. Inr. A South American. jpy.
Lot less var.
A lot more of expected shortfall.
My spotting ish bit me on the bum. A bit more practice across more of the key topics would have had me more comfortable.
There was gamma delta hedge question that threw me because they did not say what the position was? just gave deltas and gamma of two Options?
A commodity forward with convenience yield that asked at which point would pay to hold more inventory. I could not get my head around that one. in my mind it would be when the cy exceeds the rf and storage. none of the prices given tied to that.
Rate my chances as very slim to praying for a miracle.
There was a Brexit fx question which had me chuckling. Do we get Trump ones next Year!
And thanks to BT. Without them I would rate my chances as zero. Was speaking to another candidate on his second exam afterwards who was stumped by the ul question and not knowing how to calculate variance on the Pd. Wow. Poor guy. David drums that one into all of us.
Hi.. I'm still not able to figure out on how to calculate variance on PD ?? Can you point me to the relevant section/question in BT? thanks
AlecMardirian
New Member
Must be PxQ : Pd(1-pd)
gbengress1
New Member
In truth the exam was tough but was never up to the level of the May exam. How do u guys solve the autocorrelation problem?
frm_desperation
New Member
Harumph! so yes a couple of curve balls. I blew up on my time management. a lot less of call put parity and bsm than expected.
A lot more fx and ul questions.
Oddball currencies. Inr. A South American. jpy.
Lot less var.
A lot more of expected shortfall.
My spotting ish bit me on the bum. A bit more practice across more of the key topics would have had me more comfortable.
There was gamma delta hedge question that threw me because they did not say what the position was? just gave deltas and gamma of two Options?
A commodity forward with convenience yield that asked at which point would pay to hold more inventory. I could not get my head around that one. in my mind it would be when the cy exceeds the rf and storage. none of the prices given tied to that.
Rate my chances as very slim to praying for a miracle.
There was a Brexit fx question which had me chuckling. Do we get Trump ones next Year!
And thanks to BT. Without them I would rate my chances as zero. Was speaking to another candidate on his second exam afterwards who was stumped by the ul question and not knowing how to calculate variance on the Pd. Wow. Poor guy. David drums that one into all of us.
To maintain delta hedge = no of calls( delta new-delta old)
= 100 x (.....)
I think the answer should be 3002 or 3200 or something like that. forgot the options
frm_desperation
New Member
currency questions were easy : e.g. F(Eur/INR) = S(Eur/INR) e^(domestic rate- foreign rate)T ; T in years
convenience yield needs to be reduced from the ratein the Forward equation.
Struggled on the theory questions: BASEL; lame country risk question made me commit a stupid mistake., emerging market question as well. STUPID me!!!
WHAT WAS AKIKE Information Criterion?
convenience yield needs to be reduced from the ratein the Forward equation.
Struggled on the theory questions: BASEL; lame country risk question made me commit a stupid mistake., emerging market question as well. STUPID me!!!
WHAT WAS AKIKE Information Criterion?
Kryptonite
New Member
currency questions were easy : e.g. F(Eur/INR) = S(Eur/INR) e^(domestic rate- foreign rate)T ; T in years
convenience yield needs to be reduced from the ratein the Forward equation.
Struggled on the theory questions: BASEL; lame country risk question made me commit a stupid mistake., emerging market question as well. STUPID me!!!
WHAT WAS AKIKE Information Criterion?
The Answer was option B - the graph given was the Penalty factor for s^2, AIC and SIC.
Kryptonite
New Member
On a side note, does FRM administer the same question paper throughout the globe? Curious if there could have been some arbitrage opportunity (information arbitrage
) for people taking the exam later in the day.
) for people taking the exam later in the day.frm_desperation
New Member
Apologies but Shout out to all the guys who wrote at Wembley London. One of the worst organized exams I've ever seen. test started 34 minutes late. made to stand outside in freezing cold, ill equipped proctors who collected our answer sheets so irresponsibly as to make us cringe. All the best for the results.
Not feeling too good about the paper. There were 15 questions that I had to guess, and 15 questions I was unsure of about my answer.... Is 60% enough to pass??? Sigh.
This is my second time sitting for part 1. Failed the first time after only relying on Schwezer. This time around I did questions from BT, but still not confident of passing at all! Feeling very discouraged right now.
(
This is my second time sitting for part 1. Failed the first time after only relying on Schwezer. This time around I did questions from BT, but still not confident of passing at all! Feeling very discouraged right now.
(gbengress1
New Member
How do you guys solve autocorrelation at displacement 2
king_bren777
New Member
OMG it is you.
Sorry. Page 47 of the QA Notes 1 - Reading 13 - Miller. If it any consolation it threw me and I went off to answer other questions and then came back to it later when I remembered how to do it. Can you imagine not being with BT though. We really would be cooked!
king_bren777
New Member
Yes. But the question did not state whether you were long or short. I just gave up and assumed we were long the delta and the combined delta was 1.2 we need to sell more of the underlying. Sell 3200. Also to hedge gamma you would need to buy or sell options and then delta hedge. None of the answers mentioned selling or buying options.
king_bren777
New Member
convenience yield needs to be reduced from the ratein the Forward equation.
The higher the CY the lower the forward price will be because it will swamp the the rf and storage costs. The curve will be then be in backwardation. Then it would make sense to increase inventory because in a back if you long the underlying you lend it out and earn the carry. In my mind the answer was to increase the CY until it swamped the RF and Storage cost and ended up with a lower implied forward.
Who knows !
Struggled on the theory questions: BASEL; lame country risk question made me commit a stupid mistake., emerging market question as well. STUPID me!!!
Ditto. Was completely thrown by the PPP question because it was like sooooooooooooooooooooo basic I was not bothered to cover it. Sigh. Lesson learned.
WHAT WAS AKIKE Information Criterion?[/QUOTE]
The higher the CY the lower the forward price will be because it will swamp the the rf and storage costs. The curve will be then be in backwardation. Then it would make sense to increase inventory because in a back if you long the underlying you lend it out and earn the carry. In my mind the answer was to increase the CY until it swamped the RF and Storage cost and ended up with a lower implied forward.
Who knows !
Struggled on the theory questions: BASEL; lame country risk question made me commit a stupid mistake., emerging market question as well. STUPID me!!!
Ditto. Was completely thrown by the PPP question because it was like sooooooooooooooooooooo basic I was not bothered to cover it. Sigh. Lesson learned.
WHAT WAS AKIKE Information Criterion?
[/QUOTE]AlecMardirian
New Member
If my memory serves me well , it was an ar(1) process so the first period autocorrelation is = to the coefficient , i m not sure though
gbengress1
New Member
What they gave us was not a function, they only gave series of numbers and we were told to find the autocorrelation. Similar question came out in may
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