Exam was too lengthy, i was only able to complete around 90 questions, too much stress on finer details. there were questions on calculating mean and standard deviation - seriously?? Does anyone do that in real world with so many sophisticated tools around, so u can imagine the kind of details...
Assume the annual returns of Fund A are normally distributed with a mean and standard deviation of 30%. The annual returns of Fund B are also normally distributed, but with a mean and standard deviation of 40%. The returns of both funds are independent of each other. What is the mean and...
Also, there was a question about CEO being offered a bonus, either he can take the lump sum at the end of the first year or he can take it in 2 cashflows, 1st one after 6 months and remaining at the end of the year, I calculated 3-4 times but couldn't get the answer for this.
Exactly this question baffled me, I did the calculation 3-4 times, and couldn't get the answer, I even thought GARP made a mistake and did not print the correct answer :)
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