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Passed level 2 with 1 1 1 2 1

I got the same message

I passed level 1 in December last year. I found the exam to be relatively easy because I was over-prepared. It was the first exam I "targeted." I learnt about FRM and other programs AFTER I started studying for CFA. Out of all the certifications, the CFA designation is no doubt the most...

The CFA exam is made up of sections much like the FRM exam. However, the syllabus covers a lot more ground in each exam. As you may have heard, CFA touches every aspect of financial analysis, not just risk management. They are independent to a certain extent. However, you may benefit from...

The answer was 31.5 I don't remember the question as precisely as I did on the day of the exam. But, using the starting LIBOR, the payouts were -40 and +8.5

http://forum.bionicturtle.com/threads/the-philosophy-of-bionic-turtle-logos.892/#post-3270

Yes. It is not a simple subtraction. We use the survival probabilities.

Sharpe ratio, for hedge funds, overstates return even when there is no bias. This is because standard deviation is not the appropriate risk measure for most hedge funds. I feel it is overstated performance, simply meaning, the hedge fund industry as a whole seems to return MORE on average.

I feel the same. For hedge funds, sharpe ratio has little value because it does not take into account the asymmetric return distribution.

I didn't even read the option. I actually found the other options incorrect, that is why I marked crossholdings.

Your logic is correct. However, I have a feeling that they asked for risk-neutral PROBABILITY OF DEFAULT and not risk-neutral mean loss rate.

That answer was definitely cross-holding. The other options would have reduced tier 1 capital. (eg. deferred tax liabilities and good will)

It was simply the 9. We had to select the bond value at the lower 5% of the rating index. I think the rating was BB was at a cumulative 6% and was the answer

Precisely. People make mistakes. We are flipping out over 1 question. And, historically, part 2 pass rates have been high. I don't think it will be a problem. If you had the presence of mind to be able to get 16% AND 20% means that you read everything, a little well maybe. Let's celebrate our...

It seems that way because you are talking to people who COME TO A FORUM to discuss the paper immediately after their exam. All of us were over-prepared. I know people who just study 2-3 days for the exam and expect to pass. 1 person I know left 20 questions. The pass rate will increase...

Don't worry about it. Last time, discussing part 1 on this forum, I figured that I marked 3 answers wrong FOR SURE. I still got top quartile in all sections. I'm guessing that top quartile is 4-5 mistakes per section. Relax!

Precisely. We are SURE that the merger will be complete. On the other hand, the market is not. So, they discount the value of the acquiring firm (because they usually pay premium for the shares) , and increment the value of the firm being targeted (but not completely) to reflect the chance...

Thought so. Thank you for the clarification, David.

I still think it is 20%. Risk neutral mean loss rate = risk neutral probability of default i'm guessing? http://forum.bionicturtle.com/threads/risk-neutral-mean-loss-rate.1443/

When I think about it again..I think you could be correct. If risk-free rate would be 0, the default rate would have to be 20%. Since the risk-free rate is 5%, we have to compare 80 to 100/(1 + 0.05) which is 95.2 something 80/95 = 84% So, in this case, risk-free default rate and the...