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Exam Feedback May 2021 Part 2 Exam Feedback

LucreziaB

Member
Subscriber
@yao94 You cannot use the FRM designation until GARP has approved your work experience. Once approved, you will receive a notification from GARP stating that you have your FRM certification.
Nicole, I remember a while back someone shared language from GARP that candidates can use to indicate they passed the test and are just waiting on work experience verification...basically that it is only a matter of time but they can’t officially use the designation just yet. I tried to find it again but was unable to. Might be helpful to sticky somewhere...and if it is already stickied, my sincere apologies
 

yao94

New Member
@yao94 You cannot use the FRM designation until GARP has approved your work experience. Once approved, you will receive a notification from GARP stating that you have your FRM certification.
So i passed both exams AND have over 2 years work experience but still have to wait month until GARP will approce my work experience?
 

Nicole Seaman

Director of FRM Operations
Staff member
Subscriber
So i passed both exams AND have over 2 years work experience but still have to wait month until GARP will approce my work experience?
@yao94 Yes, that is GARP's policy. Work experience must be approved before you can use the designation. You can state that you've passed both exams, but you cannot use the FRM designation until GARP has finished their work experience verification.
 

David Harper CFA FRM

David Harper CFA FRM
Staff member
Subscriber
Pass rate ?
Unknown as of yet (nor is the score required to pass----aka, minimum passing score, MPS--even remotely knowable ex ante, as has been much discussed, and this MPS can only be approximately inferred ex post).

Historical averages are ~46% for P1 and ~56% for P2; will update chart when GARP releases the information https://www.bionicturtle.com/forum/threads/what-is-the-pass-rate-for-the-frm.10093/post-80406 ie.,
Below is the updated pass rate chart (cc @Nicole Seaman ). Really brief observations:
  • This is now a 10-year sample (20 exams; starting with May 2010 when the FRM split into two parts)!
  • The Part 1 pass rate of 45.9% happens to be coincident with its long-term average
  • The Part 2 pass rate of 58.6% dropped from May's local peak of 60.5%. Last May's gap of 18.7% (i.e., 60.5% - 41.8% = 18.7%) was the largest gap in the exam's history. This November's gap was only 12.7% (i.e., 58.6% - 45.9% = 12.7%) and is nearer to the long-run gap of 10.6%. Historically, we've said that the P2 pass rate is about 10% higher than the P1 pass rate, so we're getting back to that.
 
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LucreziaB

Member
Subscriber
Unknown as of yet (nor is the score required to pass----aka, minimum passing score, MPS--even remotely knowable ex ante, as has been much discussed, and this MPS can only be approximately inferred ex post).

Historical averages are ~46% for P1 and ~56% for P2; will update chart when GARP releases the information https://www.bionicturtle.com/forum/threads/what-is-the-pass-rate-for-the-frm.10093/post-80406 ie.,
Can the MPS be inferred at all? We really don’t know what GARP does with the questions after the fact.
 

lushukai

Active Member
Subscriber
Hi @LucreziaB ,

I think its pretty hard to infer the MPS, as it really depends on the distribution of scores that year. Assuming central limit theorem (due to a large number of test takers and a normally distributed set of scores), you'd have to find the mean and move by 4.0% as the long-run mean passing rate for part1 is about 46% as mentioned.

Ideally, I would work with a sample of scores and a certain confidence level, working till a confidence level that I can reject (from a hypothesis test) to deduce the MPS. Of course, this comes with a range of error... I'd most probably work with a t-distribution and n = 30 (minimum) scores.
 
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