- one about forward price no arbitrage I remember it was $109 based on (S exe r + storage - conv t) <= F <= ( S exe r + storage t ) 108.8<=F<=110. ( not sure about the exact figures) The answer we got after doing the calculation was a little bit above 108.x and the max was close to 110 therefore the no arbitrage price should be between both, the only answer given that meet this was the 109

Hi Chris, I believe they do let you know which quartile you scored in the topics that you tested (either 4 or 5, depending on which part you sat for). Thanks, Suzanne

Well .. it was like 109.13 for me .. so I Chose 109.. Also I hope question used the word 'CLOSEST'.. and since the options were all integer.. so it made sense to me to chose the closest..but i cant say with 100% surety on that ...

It probably did not use the word closest, but there is no reason for concern; GARP, it would seem, has some difficulties understanding significant digits and precision. They have also demonstrated in the past that their questions/answers are clearly not error free.

There was a question about choosing correct - a) Duration is additive ... b) Stop-loss ensures loss is limited .. c) ? ... d ) ? Were the options same ?? I was confused in these 2 options

i think questions were really good question on ewma to calculate sd based on previous return & previous daily volatility...even i was knowing it answer was not coming question on longrun varance of garch model which one has the highest long run variancee =w/1-a-b what was the answer of probability question about probability of picking subprime mortgage then question about unexpexted loss what was the answer question on present value of dividend these questions were really intriguinggg i had almost attempted 80 t0 85 questions but i dont know how many of them were correctttt various theory questionsss which u had ticked based on judgment at that timeee

i thinkk there were 60 theory question and 40 numericall some off my friends who are frm said even u score 50% of questions correct u are throughhh we should try to list all the theoryy questionsss so that we can check how many of them are correct 1.

i thought in that question they are asking about the highest long run varianceee not about the weight of vl i dont remember it it was weight or highest vl

Yes, they were asking about VL , not gamma. Don't remember for sure but think they were asking about volatility and not variance, so sqrt(VL)....but def not gamma.

I beg to differ here... I remember with certainity that the question in my booklet asked the smallest weight of long-run variance among the 4 choices, so the answer was the 1 with max (alpha+beta).... gamma = (1-alpha-beta)

Certainly the question was on highest longrun variance not the smallest be it weight or longrun variance i dont remenber but what i remember it it was highest lon run variance nor weight of thatttt... god knows

@ila - Thats why I said "question in my booklet " .. asking long-run variance is a standard FRM question ...by looking at the question even i was tempted to find it quickly w/(1-a-b) and mark the answer.. but I paused and re-read TWICE ... so 'hopefully' i did not read something that was not even written there A small Correction - As per the 1st post on this thread on PAGE 1 -- Plz see 3. GARCH model: gives four options and asks you to choose the one with the heaviest weight on long-term average So we had to find one with minimum alpha+beta

but also i read it two or three times before solvinggg may be about wieight i didnt read it in the question sooo as PER FRM paper is concerned questions were like much more calculative apart from the formulas uu remember like all the questions even about knowing the concept the calculation part was very strong and required good calculation so weight problem requires less calculation than about calculating long run variance .other members are also saying the sameee... any way these are the questions which can make u pass or failll hope it is longrun variance nor about weightttt. if other members have idea about that please respond

yes.. i have found 1 in the 1st post itself.. which was the 1 listing all questions he remembered .... and u hav found 1 who is definitely going to be the rank 1 in this group (aleksander) all the best

sqrt (w/1-a-b) = sqrt(VL) I'll bet anyone $100 it was the long term volatility and not the factor loading (gamma)

Ok.. Aleksander ...if that gets us to the real question then why anyone.... you have a bet with me man