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It is mentioned in the text, p.64 that M1 and M2 is equilibrium model. Ho-Lee is a class of arbitrage-free model. All 3 are recombining tree model. The mean reverting model of Vasiscek is probably a mix of 2 depends on how the parameters are chosen/calibrated but not discussed anywhere in the...

I passed part 1 with 2-1-1-1. No email yet. Thanks BT

I think there is some biases here as Finance has advanced quite a lot since then in term of complexity. Can't compare the pass rate of 60s-90s period directly with says 95-today.

I think it would be a good idea to check the management discussion part in the annual report to see if there is any comment. It could be real improvement, could be just aggressive management assumption. Bryon

I remember these 2 questions now. The key is to identify to whom the option has value to and to +/- option cost to arrive at plain vanilla bond price. Then it's just the usual duration/convexity formula. I think I only get to the exact answer on only 1 part. The poisson distribution question is...

If you are asking about the duration of a callable bond, my answer was between 10-15 years. I stand by my initial answer having check the references. Considering the negative convexity at lower yield, duration is smaller at lower yield. The one example quoted from FRM has a condition: callable...

Honestly, I can't remember what the question asked nor my answer. Anyway, it's over.

I'm tempted to do the same but I think I'll just focus on CFA level 3 and will do FRM2 Nov next year. The biggest obstacle for me would be the amount of memorisation required for FRM2. I did not spend that much time studying for FRM1 after my CFA 2 this June, less than 100hrs I would say.

This can't be right. For VAR, the sum can be larger than its parts i.e VAR is not sub-additive.

CFA level 1 pass rate has been around 38-40% recently, 42% for level 2 last June

Yeah, please report. I'll do the same. First they stopped me by saying you can't bring in a second calculator. Only after I confronted them that they changed their mind. Second, the guy at the checking desk have no ideas about calculators, keep looking at a printed photo page for clues. I...

You guys can remember lots of question! I can't recall much now. The Z-table were used in, like, 2-3 questions. I also don't think 70% is the cut-0ff point. Can't be that high. Imo, the individual questions are on par with level 2 CFA in term of difficulty for the more involved ones. Passing...

I'd like to write to GARP to give them feedback on the exam experience, notably the proctors at my center. Do they have a dedicated email address for this? Thanks

I took the test in Paris. I must say that the administrators had no idea about GARP policies. They took away all the pencil sharpeners.

Sounds like a good strategy, Shakti. I'll keep that in mind. Thanks

I was referring to a schweser practice test question. In fact, there is another question where we are asked to rank betas given business lines.

Hi, If it could be of any help, there is a section on Spearman rank correlation testing in CFA level 1 quant book. You can find the procedure, t-test formula and distribution table to test correlation. In short, let X and Y 2 series to be tested. 1. Rank X from largest to smallest, assign rank...

Just to add that you can actually test intercept/coefficients against other values not just zero. So the standard t-stat formula for testing the mean remains the same. s/sqrt(n) is also consistent with standard error SE notation.

Hi David, I have a question on part 4 under Operational Risk (Hull). Do we need to memorize the beta for each business lines under the standardized approach? There are eight! I've seen a question like this without betas given. Thanks Bryon

So ,on average, we have 2.4 minutes for each question (240/100). I'm struggling to finish BT mocks within this time. I'm wondering how's it like in the real exam. Do we have easier questions to allow for more involved ones? I don't think I can finish 100 questions with 4 hours at this level of...