Exam Feedback November 2018 Part 1 Exam Feedback

cmfrtblynmb209

New Member
How did you do the question on Bayes related to ratings? the probability that both BB and AAA defaulted, something like that... i calculated bayes for both and then did the sum of probabilities. I found that probability on one of the answers, but i'm pretty sure it was not the good way to do it.

Find the probability that the defaulted bond was rated C given that there was a default, then 1-p(C given D). You should have come up with the same answer, just took the long way home.
 

Anibal86

New Member
There is one question about sharpe ratio
it gives standard Deviation
Covariance=0.0009
Expected return =12%
Expected return =8%
Value 40000
Value 60000
Risk free rate=2.5%
I just coludn't find the crrect answer.Please help me!
I think it was the option A, can't remember the exact value, but you have to calculate the average mean and the variance for the portfolio, to get Sharpe ratio,

Hope it helps
 

gprisby

Active Member
I choose that answer as well because it couldn't be bootstrapping imo. It was a small sample and there was no historic data which were used again for new data. The other two answer doesn't make sense. But with this answer I am not sure and i couldn't fully remember the question:confused:

I remember putting bootstrapping for the answer. Others didn't make sense to me, can't remember the question though.
 

peterlptl

New Member
The exam was fair, not super easy though. Especially when it comes to numerical calcultions; I still cannot figure out how two people in my exam room finished doing 100 questions and left in 2.5 hours!!! So unreal.
 

cmfrtblynmb209

New Member
I felt that the exam was pretty easy. I was able to complete it in 3 hours and 10 mins.

Somewhat agree. Thought it was extremely fair and not overly difficult if you knew the material and concepts well - not just memorized formulas. Personally, I think that this is how the test should be written since in practice you're never, for example, calculating N(d1) by hand. I felt it fairly and effectively tested deeper comprehension. I went extremely slowly, took a nice long break, and finished 15 seconds after they announced that you couldn't leave the room anymore.

Guess I should have taken a shorter break...
 

ami126

New Member
Somewhat agree. Thought it was extremely fair and not overly difficult if you knew the material and concepts well - not just memorized formulas. Personally, I think that this is how the test should be written since in practice you're never, for example, calculating N(d1) by hand. I felt it fairly and effectively tested deeper comprehension. I went extremely slowly, took a nice long break, and finished 15 seconds after they announced that you couldn't leave the room anymore.

Guess I should have taken a shorter break...
Very true, I thought of taking a break myself but I didn't for this very reason, I didn't want to stay the extra 30mins
 

gprisby

Active Member
Describe the bootstrapping method and its advantage over Monte Carlo simulation.


Bootstrapping is related to simulation, but with one crucial difference: with simulation, the data are constructed completely artificially whereas bootstrapping is used to obtain a description of the properties of empirical estimators by using the sample data points themselves, and it involves sampling repeatedly with replacement from the actual data.
 

cmfrtblynmb209

New Member
too many concept questions regarding ERM,CRO,CCP. Much harder for me since the English is not my first language...

I agree with you 100% that ESL candidates were likely disadvantaged by the nature of the questions. I'm not sure that makes it a bad or poorly written test, but I absolutely understand your frustration with it. I thought to myself several times during and after the test that being a native English speaker was likely a larger advantage on this test version than previous iterations based on the heavily qualitative nature.
 

Razi

Member
Comparing this thread to the similar ones for the previous years it seems that the paper was generally easier to tackle this year especially the quant section. Usually people comment how they were able to attempt only 70 questions and guessed the rest or that the time was short or they are bound to fail and still ended up passing. Unfortunately in an exam which is marked on the basis of relative performance of the candidates this is nothing to be happy about! Simply means the cutoff will be higher :(
 

Ankys

New Member
Anyone remembered a question about the information ratios with a chart with (T/k) on abscissa? Even now, I don't really know what was the right answer.
 

tirerasalim

New Member
Subscriber
Felt the exam was gonna be really hard going in and came out surprised that it was very fair, almost like a wasted opportunity if I fail. Feeling confident about the math questions but feel like my downfall could be the theory questions although I made some good guesses.
good luck to all.
 

BartW

New Member
Anyone remembered a question about the information ratios with a chart with (T/k) on abscissa? Even now, I don't really know what was the right answer.

I think you mean the question about the penalty factor. I thought it was answer B, the Aikaiki information criterium.
 
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