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# Exam FeedbackMay 2017 Part 2 Exam Feedback

#### arun.27

##### New Member
I went for the same with the same logic
Not sure if I remember the question right. Why will a soy farmer be counterpart to short ( i.e taking a long position)

#### FrmL2_Aspirant

##### Member
I had not read about it.. but applied a little physics , by unsmoothing, u will add the noise back and may have uneven data, not sure if it is correct..

#### ashish_pandey

##### Member
I had not read about it.. but applied a little physics , by unsmoothing, u will add the noise back and may have uneven data, not sure if it is correct..
Thats correct..i dont remember the exact ques but this would increase volatility but expected value will not change

#### chopin

##### New Member
According to Schweser,
"Unsmoothing returns affects risk and
return estimates, and could have a dramatic effect on returns" . I remember one question that one option available was said: "Unsmoothing volility affects only risk" and I select it. Is it wrong? Please could anyone clarify? Thanks!

#### bpdulog

##### Active Member
According to Schweser,
"Unsmoothing returns affects risk and
return estimates, and could have a dramatic effect on returns" . I remember one question that one option available was said: "Unsmoothing volility affects only risk" and I select it. Is it wrong? Please could anyone clarify? Thanks!
I don't think it said only risk, but I think there was one that said only returns and it was not correct

#### Part 2 Student

##### New Member
There was a question about hedge fund returns with a formula that looks like Pt - Pt-1 = 0.6781 -0.3722Pt-1 (don't remember the exact parameters)...which answer is correct?

#### necofrer

##### New Member
I picked the one with the long term mean. Just equal to zero and solve for P

#### FM22

##### Member
Are you referring to the one - that was questioning about the diversification benefit?
The one with diversification benefit - I calculated the individual var (A+B+C) and Diversified Var with given Portfolio SD. Difference between both is the benefit.
I also did the same ✌

#### FM22

##### Member
There was a question about hedge fund returns with a formula that looks like Pt - Pt-1 = 0.6781 -0.3722Pt-1 (don't remember the exact parameters)...which answer is correct?
I select 0.3722 for the answer to find mean reverting parameter

#### FM22

##### Member
Can we please shed some light on Bitcoin questions?? Does using bitcoins by retail merchants decrease the cost for retail merchants??

#### ball86

##### New Member
-How was a question about graph with CVA and fed rate ,and ERM micro question?

#### cj9101

##### Member
I was referring last year FRM material and missed reading about Bit coins . But from the general understanding of the whole distributed ledger system for bitcoins, I always thought that one of the major advantages would be about easy KYC , better Anti money laundering managements because of the transparency the whole system would provide. Everyone has the access to the transactions happening , which I though should mean easier traceability. Am I miss something big here ?
I also picked this answer but most of them says it is wrong... Our logic looks good right?

#### FM22

##### Member
I also picked this answer but most of them says it is wrong... Our logic looks good right?
In bitcoins kyc is more difficult as any one can open an account with Bitcoin. So this answer seems incorrect

#### FM22

##### Member
-How was a question about graph with CVA and fed rate ,and ERM micro question?
Can you plz elaborate ERM question. Cannot recall..?

#### ABC_2017

##### New Member
There were two questions regarding Bitcoins.... In one of the questions they asked about the benefit of retail merchant if they start accepting Bitcoins?
one of the benefit in the choices was " Less cost for retail merchants" i chose this answer. as bitcoins are less expensive then other payment solutions I guess
do u remember the options.

The more the questions are being discussed, the more it seems impossible for me.

#### necofrer

##### New Member
CVA and fed fund rate...I picked the one like 1/x function.

#### cj9101

##### Member
In bitcoins kyc is more difficult as any one can open an account with Bitcoin. So this answer seems incorrect
B
But still it is easy to trace transactiom

#### ball86

##### New Member
Can you plz elaborate ERM question. Cannot recall..?
kind of which one is correct about ERM micro? I answer line manager estimate or something each project, another option is make it centralize