Exam Feedback November 2020 Part 2 Exam Feedback

[Nicole Seaman]

We hope that everyone did well on the FRM Part 2 exam on Saturday! We would love to hear any feedback that you have about the exam. How did it go? Did you encounter unexpected questions? How was the experience with all of the new COVID guidelines? Thank you in advance for any feedback you can provide!

Update: The pass rate for the Part 2 November exam is 59%

 

[mattheweidinger]

Did anyone take the exam in Montreal? If yes, can you please comment on how the exam was administered?

 

[lhelfe199]

Anyone found some information on when the exam results will be out?
Wondering if they have to wait until the postponed exam locations are also done in January, or if there will be a valuation based on only the ones conducted on 21st of November.

 

[Nicole Seaman]

Anyone found some information on when the exam results will be out?
Wondering if they have to wait until the postponed exam locations are also done in January, or if there will be a valuation based on only the ones conducted on 21st of November.

@lhelfe199

The November 2020 exam results will be sent via email on January 1, 2021. GARP provides all important dates on their FAQ page here: https://www.garp.org/#!/frm/frequently-asked-questions.

 

[Albertikos]

Hello,

The exam was very tricky with a lot of questions qualitative.

Questions that i remember:

1- One in which both sides are exposed to wrong way risk
2- Calculation cox. 2,89 answer
3- Calculation ho-lee. think answer was 55 pb.
4- DtD (LN (MV/FV)/desv)
5- BCVA - 410000 answer
6- One with PD*-PD*EAD*LGD ... think was 8,3 the answer
7- stress var
8 - libor (answer was binding ... ?¿?
9 - one that the answer was long coupon and short variable rate
10- Unexpected loss.
11- RAROC
12- ARAROC
13- one that you have to select directly doing the Return - CAPM return. Select the one ith highest alpha
14- collateral. select the one with the threshold small and margin perior small (the left one on the table provided)


Someone can remember more?

 

[niteshaidasani]

How did everyone find the exam? I thought it was much harder than either the BT or the GARP mock exams with lots of unnecessary red herrings. Even questions that should have been easy were asked in such a way to make them annoyingly difficult. For example, there was a question about calculating CCP exposure, which is usually asked in the form of 3 circles labelled A, B and C, and arrows connecting these 3 circles. In the exam, this question had no diagram and instead they used phrases like "A has a long position with respect to B". I can't remember the exact phrasing but I found it very confusing trying to understand which way the arrow should be pointing - from A to B or from B to A. I was a bit rushed for time but that's most likely my fault. I still managed to get through 77 questions and then just guessed the least 3. I got more than 70% in each of the 3 practice mock exams under exam conditions and put more than 6 months of effort in preparing for this exam, so on the whole I feel a little bit disappointed. Fingers crossed I did better than I thought!

 

[Albertikos]

How did everyone find the exam? I thought it was much harder than either the BT or the GARP mock exams with lots of unnecessary red herrings. Even questions that should have been easy were asked in such a way to make them annoyingly difficult. For example, there was a question about calculating CCP exposure, which is usually asked in the form of 3 circles labelled A, B and C, and arrows connecting these 3 circles. In the exam, this question had no diagram and instead they used phrases like "A has a long position with respect to B". I can't remember the exact phrasing but I found it very confusing trying to understand which way the arrow should be pointing - from A to B or from B to A. I was a bit rushed for time but that's most likely my fault. I still managed to get through 77 questions and then just guessed the least 3. I got more than 70% in each of the 3 practice mock exams under exam conditions and put more than 6 months of effort in preparing for this exam, so on the whole I feel a little bit disappointed. Fingers crossed I did better than I thought!

i think that you have to sum up the total position .... and only one of the 3 was negative! i choose the one that was negative.

 

[niteshaidasani]

i think that you have to sum up the total position .... and only one of the 3 was negative! i choose the one that was negative.

I think I chose that the CCP had no exposure to party A, which happened to be choice A.

 

[Albertikos]

I think I chose that the CCP had no exposure to party A, which happened to be choice A.

two were positive and one negative, or veceversa. I chose the one that was "alone"

 

[bld_kr]

two were positive and one negative, or veceversa. I chose the one that was "alone"

You mean "exposure c blabla" instead "total net exposure blabla"? I choose that

 

[Albertikos]

You mean "exposure c blabla" instead "total net exposure blabla"? I choose that

if you sum a has exposure to b - 3
if you sum a has exposure to c - 3
if you sum c has exposure to a -2

for example 3+3-2 = 4 --- i do like that in the exam

 

[bld_kr]

Isn't there a answer that the manager invest a good portion of their own wealth? I Don't remember exactly, but i saw the book.
And what is the answer about pf construction technique about screen, stratification, etc?

 

[marcreaidi]

How did u solve for the unexpected loss without a standard deviation for loss ?

 

[Feola]

How did u solve for the unexpected loss without a standard deviation for loss ?

They mentioned it was a binomial distribution, so I used PD*(1-PD) for the PD variance. The loss std dv I think was given.

 

[Albertikos]

How did u solve for the unexpected loss without a standard deviation for loss ?

that one... pd*1-pd - dont remember the answer that i put? any one remember?

 

[marcreaidi]

Thanks , I also did not know how to calculate the adjusted duration gap , i calculated the DA and DL based on a weighted average ( DA - L/A x DL) but the answer i gor was not available choices.

 

[Albertikos]

Thanks , I also did not know how to calculate the adjusted duration gap , i calculated the DA and DL based on a weighted average ( DA - L/A x DL) but the answer i gor was not available choices.

here i have a 25% opportunity jaja

 

[Feola]

Thanks , I also did not know how to calculate the adjusted duration gap , i calculated the DA and DL based on a weighted average ( DA - L/A x DL) but the answer i gor was not available choices.

Yes, i think that one was truncated on the answers. I did the same and I remember there was an answer with the truncated value.

 

[mattheweidinger]

They mentioned it was a binomial distribution, so I used PD*(1-PD) for the PD variance. The loss std dv I think was given.

My god, that's exactly the kind of thing I would expect from them..!!!

 

[ucaksbu]

Yes, i think that one was truncated on the answers. I did the same and I remember there was an answer with the truncated value.

That‘s just so annoying - I figured that was the formula, but the numbers didn‘t match (1.68 rounded down to 1.6), whereas there was a number thaz matched Duration of Assets - Assets / Liabilities * Duration of Liabilities, so I talked myself into that being the right answer. So stupid that they have wrongly rounded answers in the exam