Quality of GAARP questions

[caramel]

Hi David

It seems kind of scary, from GAARP practice exams at the way some questions are framed , eg in 2012 practice , I am left guessing if the investor has taken a long or short position as nothing is mentioned I assumed long . I hope I dont see the same stuff on 17th Nov , considering I will already be under intense exam pressure.

 

[ShaktiRathore]

Hi caramel
Can i know for which frm part you are sitting.Relax and chill as i think there would not be such awkward wrong Questions on the exam day. I have sat for the last frm exams and i have not seen such mistakes barring one or two Qs which might stand out as exceptions. Nevertheless even if there are some wrong Qs stuff than all the candidates will be judged based on right Qs only and you will get reward for the wrong Q. FRM is a professional exam conducted by a professional body GARP and i don't think by laying down such wrong Qs GARP would want to jeopardize the ingenuity of the FRM exam. Its an global exam of great repute conducted worldwide in over 100 countries with risk professionals and other finance geeks giving it so such mistakes would not be tolerated by these people. It would be really disappointing to see wrong stuff in the exam. GARP please maintain the ingenuity and authenticity of exam please don't disappoint us the exam takers like Caramel ....

thanks

 

[David Harper CFA FRM]

Hi caramel,

I have expressed to GARP, on several occasions and in no uncertain terms, that the quality standard of the PRACTICE exams (including 2012 and 2011) is too low. I have even said, because I do truly believe, that I worry it "has the potential to damage the reputation of the FRM" in the long-run, to the extent potential candidates judge the published questions. In response to this concern (I can only imagine I am not alone, although I am likely the most vocal), GARP is going to get advance input on the draft 2013 practice exams (although these questions are subject to a Confidentiality Agreement). With respect to the PRACTICE questions, then, I am encouraged by GARP's desire to raise the standard and greatly relieved that we will get a chance to contribute to some assumption and definitional precision, especially.

But I agree with ShaktiRathore. I do not think either the AIMs (which, by design, are not a 1:1 map, so their occasional imprecision is "built-in") nor the practice questions deserve to be confused with the actual exam. I think there are three points, from my perspective:

1. GARP has a different process around, resource of, and scrutiny of the actual exam. To Shakti's point above
2. Any candidate can submit questions for appeal, as I understand. If you do encounter an unfair/imprecise question, please know GARP will receive any such "appeal" and review carefully. GARP has said that in the unlikely event a question is found to be flawed, it will be discarded from the result. Due to the large sample, it is my mere impression that on each exam, a large number of candidates will appeal one or two or X questions, in a pattern. So, who knows, I am just making this up, maybe one will get tossed out due to overwhelming pattern?
3. Finally, the exam is graded on a curve. Ultimately, I think this also supports Shakti's point. The FRM is not like the SAT, but the SAT (as i understand) is not realistic. The FRM sources from practitioners, too, not only the textbook. Importantly, a perfect score is probably impossible. In my years of supporting the FRM, it seems to me that candidates who have basically studied and done the practice, almost always end up passing. So, I really would advise neglecting a view on a absolute scoring standard (as it does not exist ex ante) and rest assured that the "upper batch" of basically prepared candidates will pass, and all of them will miss many questions in the process with imperfect scores. I hope that helps,