So, it's over! Any thoughts? I thought that the questions were interesting, and asked for some thinking as expected in an SA paper. Q1 was very long (13 parts!) but a well prepared candidate should be ok with this type of question I think. The CF part was lengthy as it required workings to calculate the debt and loan repayments. Leasing part put me off a little bit, given the material in the text. Q2...interesting again, with lots of parts to think about and discuss. But to be honest, I don't really know how my performance was...sometimes you think that you've understood what is being asked, but when you look at the answer it's completely different. It's my third attempt and just hoping to be third time lucky! Colin - Where do you think the passmark will be for this paper? Close to 40 or 50? Or more (!)? And what are your thoughts on this paper? Thanks El Gringo
So, this confirms that we are only a handful sitting for this paper! Colin - any comments please? Thanks
Comments April 2012 Hi Sorry - couldnt comment on the exam as I didnt sit it and therefore dont get a copy of the paper. Have now had a look at the paper. As you say,Q1 is broken down into 13 parts and each of them is quite clear and targeted. Part (viii) is a cashflow forecast which could have gone a number of ways depending on the assumptions made, but hopefully will be marked accordingly. Q2 seems OK too, targeting mergers and acquisitions. Altogether a very passable paper, and hopefully a nice high pass rate when it comes out. I dont have an insight into the pass marks, but I believe the profession is going to try and publish this in future, starting with the April 2012 exams. So we will see.
Thanks! Hi Colin Got the news this morning and I've (finally) passed this paper! Thanks a lot for the advice during the tutorials and on this forum. Cheers El Gringo
For question 1 parts (iii) and (iv) it was not clear what risks are considered as business risks and financial risks respectively, or could have any well explained risks earned marks? For example I had Credit risk and Operational risk for part (iv).
I dont think the examiner required you to separate the risks into two silos here. You are right that there is a fair overlap between investment and business risks.
Q1 part (ix) Is not the maturity gap Rate insensitive assets less rate insensitive liabilities? Since both the loans are fixed rate, should not the maturity gap be 354488.77 - 500000??
