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In my opinion GARP sometimes writes their questions in a way that only a deep understanding of the concepts will get you to the correct answer (i.e the part II question concerning QQ plot with the fat tails), sometimes they will give you REALLY similar answers and only a tiny change in the...

Considering that the theoretical questions in the exam mixed up a lot of concepts and AIM's at the same time, perhaps for the topic review questions in BT, it would also be helpful to design some questions which are not aimed at just 1 concept, but rather require associating key ideas from...

I chose that the purchased dataset (commercial / investment bank) should have more EDPM than the one experienced by the purcharser bank (retail bank)...

I answered overcollateralization, since the other answers were more like "features" of a securitization, rather than "credit enhancement", which sould be additional protection

I think the answer was US bonds. I followed these steps: 1) Get VaR of portfolio, before any additional exposures 2) Get VaR of US Bonds, given STDEV and exposure amount. 3) Calculate aggregate VaR using the square root formula, using the correlation given. The output was an aggregate Var below...

Concerning economic capital models, I also answered that one application was to determine maximum liability costs (interest rate) that could be assumed. The other answer was that it helped in setting regulatory capital, which did not make sense to me since that should be IRB models...

Yes, it was way lower than the initial 3%, 1,9% if I remember correctly.

Also answered that one

For the SMA question, I answered that the main advantage was that no "internal modelling" was needed, which reduced model Risk...

Yep, me too

I think it was 1,09%, since you had to calculate the Annualized Default Rate out of the PD given by the hazard rate.