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FRM (Level 2) -May 2016 Exam Experience!!!!

8 Jul 2016

FRM (Level 2) -May 2016 Exam Experience!!!!


FRM exam is not a cake-walk. This exam is quite different from our college exams. FRM exam needs an analytical mind besides reading material. Solving problems and getting answers are fair enough. But I found most of the questions in this exam require deep understanding of the concepts. Answer choices will be so closed that it would be difficult for students to judge which answer is correct.

I started my preparation somewhere last week of November through reading Schweser books. These books cover all topics but not too detailed and in-depth. I was working and used to get time to read those books just on weekends. I finished the reading by first week of March but I was not fully satisfied with those books because I knew the level of exam as I cleared the Level 1 before. Through solving GARP and Schweser practice exam questions, I realized that I don’t have deep understanding of concepts and couldn’t think clear while solving questions.

One of my friend suggested Risky Call study material but I was worried whether I should pay to buy the study material even though amount was not so high. I bought the study material and realized that the material was really helping me to get clarity on concepts. I could visualise all concepts together. Moreover, the links of videos in study material- which shows real world example- helped me to improve my thinking ability.

In last 15 days, I was just trying to remember all the concepts and ways to solve numerical in mind.

I was not fully prepared for an exam but I had confidence that I can do because I love finance.

Exam Day

I reached the exam centre at 1:15 PM. There were not so many students standing outside the center. By looking at the students I said “Thanks God” At least here students are not flipping the pages before an exam. Exam started at sharp 2 PM.  Questions were not straightforward as expected; it required a lot of thinking before picking an option but risky call’s study material somewhat developed my thinking ability. Moreover, the large number of numerical questions surprised me because I heard that the level 2 exam asked mostly theoretical or application based but that was not the case this time. Solving numerical questions were taking a lot of time because answers were not coming same to the options given in question. When you find difficulty to solve the question, it’s better to leave it, go forward and then come back if time permits. I could not able to attempt all 80 questions due to lack of time and the clock said 6. Time to submit answer scripts! After the exam, I calmed down and told myself that I did my job; I don’t know what the result would be; just wait and watch.

Finally, I passed the FRM- level 2.

Exam Questions tested on the following concepts:

Distance to default, VAR portfolio, CVAR, Marginal VAR, FRTB, NSFR, Illiquid assets, Liquidity adjusted VAR, Binomial tree, Forward rate, Netting factor, Generalized pareto distribution, frequency, severity, Stress scenario housing and GDP, Libor-OIS, WCDR, QQ Plot, CVA, Hurdle rate, Market maker, Half-life of Vasicek, Market risk charge, London whale, Cyber-security, Optimal allocation, Expected shortfall, Bond valuation, Wrong way risk, RAROC, Duration mapping, Margin step up, Look back period, Wrong way risk, Prepayment mortgages, PSA, CDS, Ho-lee drift, Put and call delta, Central banking lending and regulation, COCO, Tracking error and Information ratio.

All the best FRM exam aspirants!!

Thanks to Risky Call Team!!


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