It is possible I chose the closest number. I took transfers with minus.Ahh I see.
Do you recall the RAROC question which had transfers of 1.5%? Think the answer options for % was between 10-26%. This had me stumped as I couldn't get it to work if I took transfers into consideration.
The problem is that it's not really. CET1 is pure equity and it stands for Core Equity Tier 1. Core Tier 1 is not very precise at all, unless it was designed to get people confused (the strategy which seemingly worked well).Core tier 1 capital is pure equity
Yes, even I subtracted as it was a charge. But not sure why the the answer didn't match the options given.It is possible I chose the closest number. I took transfers with minus.
I used (Return on loan + return on ec-el - op cost-transfers)(1-tax rate)/EconYes, even I subtracted as it was a charge. But not sure why the the answer didn't match the options given.
(Return on loan + return on ec-el - op cost- taxes -transfers)/Econ capital is what I used
Do you remember a question about netting benefit?
Hmm not sure, was it one comparing before and after netting?Do you remember a question about netting benefit?
Now I remember that question as well. The answer was POT has extra parameter which I thought indeed is wrong. As usual I do not fully remember the answers in all these qualitative questions. Another answer I think something like for high threshold GET is better option. Also something like at infinity 'it' becomes normal distribution.
There was a hedge fund question relating to biases, I selected measurement bias as it includes many biases. Not sure whether it is correct.
I remember only some questions:
20. Ho - Lee model
I think the starting value was 2.6%, the question was, what is the interest rate in the lowest node after two periods. Lambda 1 and 2 were given as p.a. values (I think 9 and 6), so I divided them by 12.
How do you mean super biased?was quite angry at Garp during the exam. There were definitely 3-5 questions that were super biased wherein 2 answers were correct (qualitative). Otherwise, yeah, much tougher than on any test mock exams, they raised the bar quite much with those Part 2 changes they made
I received one....really trying to be diplomatic in my responses, but feel that GARP have dropped the ball in the last 12 monthsI got stumped on that. Umm...yeah, was it divide by 12 or the sqrt of 12? Gosh i blanked on that one (sigh)
Also who else got a feedback e-mail requests from GARP. I'm probably gonna lay it on them pretty rough I think as im still mulling it over how I thought about the exam overall.
Yeah I think the POT has an extra parameter, I think that's the one I chose, although I was iffy on the other option.
What was the other options? I don't think I chose measurement bias. I think I chose the one that had 'early selection bias'? Forgot exactly. But that's the one I chose.
You are referring to same questionI think q was abt an analyst going through a database of returns. What were the limitations? Or is that a different q?
I remember I chose measurement bias but I am not sure it was a correct answer, I went fast through that question.You are referring to same question
This question was about lowest node. So it was just r0+(lambda1+lambda2)/12-2sigma/sqrt(12)I think the starting value was 2.6%, the question was, what is the interest rate in the lowest node after two periods. Lambda 1 and 2 were given as p.a. values (I think 9 and 6), so I divided them by 12.