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1. ### November 2018 Part 1 Exam Feedback

I'd call the ability to bypass logical security measures and access hidden data by simply changing the date on your phone a pretty weak cybersecurity measure. Admittedly not a ton of risk in this particular case, but it wouldn't make me feel good about, for example, keeping a credit card number...
2. ### November 2018 Part 1 Exam Feedback

I guess we DO get one reading on it now...
3. ### November 2018 Part 1 Exam Feedback

I can't believe that that trick works. What a terrible website. I guess cybersecurity isn't a core part of the curriculum... Passed, 1111.
4. ### November 2018 Part 1 Exam Feedback

I see your point. I've been thinking about this question for a while post-test, and I think you may be right - could be a case where either Poisson or Binomial will get you there (more or less) as long as you set up the problem correctly. I remember that using Poisson I didn't get an exact...
5. ### November 2018 Part 1 Exam Feedback

Actually, I think that you can assume that lambda = 60*.05. Each one-day VaR is, by definition and convention, an independent event. So every day (independent event with potential outcomes [break, no break]), there is a 5% chance of the 1-day VaR being exceeded. If you were to take a 100 day...
6. ### November 2018 Part 1 Exam Feedback

Correct re: the FX question. As I recall they were net short the currency.
7. ### November 2018 Part 1 Exam Feedback

I'd estimate maybe 100 hours. Could be more, but nowhere near your 250-300. To be fair, I have a career background (10+ years) in financial risk management, including ERM, VaR concepts, MBS and structured products, etc.
8. ### November 2018 Part 1 Exam Feedback

I recall the most logical answer being something along the lines of the credit spread could change without a change in the underlying (Treasury, LIBOR, etc) rate.
9. ### November 2018 Part 1 Exam Feedback

My memory isn't completely clear on the question at hand, but there was one apparently straightforward duration/convexity price change question that gave you both D and C. However, the C that was given was negative. I have no doubt that they would have had a dummy answer there to catch anyone...
10. ### November 2018 Part 1 Exam Feedback

Impressive recall.
11. ### November 2018 Part 1 Exam Feedback

There is no defined threshold, and nobody but GARP knows the exact methodology. David has discussed this a number of times on different threads in the forum. It seems that in some way, GARP scales off of some view of the 5th quantile of test takers. So something about the top 5% of test...
12. ### November 2018 Part 1 Exam Feedback

I only vaguely recall the first question you're referencing. I thought it asked about the difference/increase in EL, in which case you'd clearly have had to calculate EL for both loan values and compare. The second I recall more distinctly, and I believe it was the variance that you were asked...
13. ### November 2018 Part 1 Exam Feedback

Definitely having a few of those doubts myself! I suppose most of us are.
14. ### November 2018 Part 1 Exam Feedback

That's correct - as long as you converted the portfolio variance to standard deviation for the Sharpe Ratio calculation. Wouldn't be surprised if they had a dummy answer that skipped that step.
15. ### November 2018 Part 1 Exam Feedback

That's unfortunately the incorrect formula. Your exponent should be 12, not (1/12), as BartW pointed out.
16. ### November 2018 Part 1 Exam Feedback

I don't remember the answer to the CPR/SMM question, but it was a straightforward conversion with an exact match answer. There was some extraneous information given in the question, so if you're positive you had the formula correct, you may have mistakenly used incorrect figures or incorporated...
17. ### November 2018 Part 1 Exam Feedback

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...
18. ### November 2018 Part 1 Exam Feedback

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...
19. ### November 2018 Part 1 Exam Feedback

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.