Exam Feedback November 2018 Part 2 Exam Feedback

[Nicole Seaman]

We hope that everyone did well on the FRM Part 2 exam on Saturday! We would love to hear any feedback that you have about the exam. How did it go? Did you encounter unexpected questions? Thank you in advance for any feedback you can provide!

 

[kfarchoukh]

Hello,


please note that what wasn't expected is the number of questions related to concepts and not calculations.
When we compare the exam to the one shared by GARP at registration, you will find that it's totally different.
it's the first time I apply for the Level II. is this something expected?

 

[Yairw]

Hello,


please note that what wasn't expected is the number of questions related to concepts and not calculations.
When we compare the exam to the one shared by GARP at registration, you will find that it's totally different.
it's the first time I apply for the Level II. is this something expected?

The same thing happened for me in May level 1.
But this time on level 2 the questions were very difficult...

 

[abbaskhaled]

The same thing happened for me in May level 1.
But this time on level 2 the questions were very difficult...

Indeed the exam was very difficult and unexpected! anyone remember anything about the questions and the answers?

 

[shailthakker]

Indeed the exam was very difficult and unexpected! anyone remember anything about the questions and the answers?

How about the asset allocation calculation, what was the answer in that?

 

[rahulkp28]

Hi,

The paper was unlike any other test papers I have taken including the GARP Practice Mock. Very much theory intensive and from topics which were least expected. The options were also very confusing and I had to choose by way of eliminating the y options but it was very difficult to choose from 2 options after I eliminated the other two. I felt credit risk was difficult with lot of questions from CDS, Credit Linked notes. Operational Risk was also mostly theory with very few numericals. I remember 1 question from LVaR, RARAOC and couple of questions from incremental VaR (investment risk). Market risk was average difficulty level. Overall the paper was very difficult.

 

[Yairw]

Indeed the exam was very difficult and unexpected! anyone remember anything about the questions and the answers?

I remember a few: There were 3 questions with graphs, about QQ plot, PFE and volatility smiles.

 

[shailthakker]

I remember a few: There were 3 questions with graphs, about QQ plot, PFE and volatility smiles.

The quantile plot had heavier tail on both sides

 

[haziqnazri]

One question that struck me hard was the capital allocation decision when the stress test might cause a breach of limits for the treasury department that is believed to have superiority to other banks' treasury dept. I was confused between B) re-allocate capital from other non-volatile (less risky) department or C) go to the board to check whether if the breach is in line with RAS.


Anyone have any idea on this?


There's also a lot of questions on calculating PD from credit spread and calculate Annualised Default rate from credit spread

 

[banu.naidu123]

The paper was difficult, but 10~ questions or so seems to be very easy and straight answer type.

Theory to Calculate questions ratio was like 80:20 ,which I saw that coming. Still

 

[jaivipin]

I found paper was super lengthy. As others mentioned, paper was full of theory. Each and every therotical question I found very challenging. Math questions were comparatively very few but really easier.

I could not complete the exam on time because of theoretical questions.

I can not even guess how many I corrected.

Another problem for me I could NOT see lot of correct answers for ‘A’ choice. I had mostly B’ and equally may be ‘C’ and ‘D’ . ‘A’ I had less than 10. That is my another worry.

Thanks

 

[koga]

For me its my first attempt and it proved very difficult indeed. I agree with @Banu on the ratio of Theory to Calculations. I had invested a lot in the calculations and the formulas. But Biornic Turtle questioning level is very close, thanks David.

 

[firsova]

Agree on the common impression of part2 containing too many theory questions among which I saw lots of questions related to credit risk.

 

[Rosa Rodríguez]

Hello,

I completely agree with u guys. I expected more calculations and it was full of theoretical, large and challenging questions. I had enough time to finish the exam but i would need like 15 minutes more to review everything. Despite of, i had more time than the previous level.

 

[abbaskhaled]

QQ plot was Fat tails And the Volatility was a Frown ... right ?

 

[jaivipin]

QQ plot was Fat tails And the Volatility was a Frown ... right ?

Yes I chose the same.

 

[shailthakker]

QQ plot was Fat tails And the Volatility was a Frown ... right ?

Yabsolutely

 

[shailthakker]

Was the asset allocation -0.3?

 

[jaivipin]

And one knows the answer of one profit loss question . I think question was number 15. Total percentage risk or something . 4 choices I think were -.2, .02 , .6 and .8

 

[[email protected]]

Yes I chose the same.

Yes I chose Frown too.... but QQ plot had options like Fat tails above both means, above lower mean, above higher mean etc... I chose fat tails above both means