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Exam Feedback November 2018 Part 2 Exam Feedback


New Member
I found 50 % paper relatively solvable, which includes all the numerical questions, which were on par difficulty with the GARP 2018 Mock. The other 50% were difficult theory questions, which were pretty hard to solve. Dont think the mock had similar questions, where the questions has 4 sentences from 4 different chapters, and then options each representing the chapter of the 4 sentences.


New Member
answer was 0.8 - you multiply the benchmark allocation vs. the benchmark return and subtract from asset manager allocation vs. achieved return.
I believe the question asked about "asset allocation", which means you assume benchmark return and multiply that with the difference in allocation weights
achieve returns are used in "selection"
Does anybody remember these two questions:

1. VaR mapping where IR curve movement was given and asked what which mapping would be suitable

2. Don/t remeber the qstn but optin were: CP risk, Liqidity risk, Funding risk, Economy risk


New Member
I thought this was too easy? I just multipled 1-rr x pd x discount factor x EE for each year then added the two years together. They gave us all the info right?
Nope that’s what they tricked. PD for second year should be difference from 1st and 2nd. It’s marginal PD


New Member
Agreed. Solved for the SMM from monthly prepayment, outstanding balance, and scheduled principal payment (prepayment/(Bal - principal) Then, converted to a CPR. Answer c.