What's new

# Exam FeedbackNovember 2018 Part 2 Exam Feedback

#### faisalfshaikh40

##### 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.

#### Navneet02

##### New Member
2 easy qsns on ES calc, and 1 on EL
One ES question: needs to be averaged by 9, where Var was equally sliced

#### max8126

##### 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"

#### [email protected]

##### Member
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

#### shailthakker

##### Member
yes... you have a sharp memory...
Thanks! And I put ccp risk as the answer. The options were that, sponsor risk, market risk and concentration risk

#### [email protected]

##### Member
Thanks! And I put ccp risk as the answer. The options were that, sponsor risk, market risk and concentration risk
Yup me too...

#### jkowalonek

##### New Member
Yes , it was , trick was second year marginal pd
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?

#### shailthakker

##### 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?
yup exactly

#### Navneet02

##### 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

#### jkowalonek

##### New Member
yup exactly
Good deal - a lot easier than the Mock Exams (for once one of the questions was actually easier!)

##### New Member
there was something about the VaR mapping which method overstate the risk?

##### New Member
I answered the Senior tranche will be protected by the waterfall

##### New Member
there was an answer about retuning to the senior management to increase the limits or something like that !?

#### [email protected]

##### Member
there was something about the VaR mapping which method overstate the risk?
i answered for upward moving curve VaR with CF mapping will be less than VaR with Principal mapping

Subscriber

#### Ailion

##### New Member
What about the SMM and CPR?
I don't know why but I choose D
Anyone can remember the total value? or formula of it?

##### New Member
SMM = 1 – (1 – CPR)1/12 somthing around 9.17 --> answer C

#### ympetit

##### 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.

Replies
328
Views
58K
Replies
57
Views
11K
Replies
44
Views
8K
Replies
84
Views
16K
Replies
158
Views
30K