Have you had a look at the specimen paper? What do you think about the questions compared with the Q&A bank and assignments?
As I'm still going through some of the questions in the Q&A bank, I can only give a limited opinion - hopefully in the next week or so I can give a better critique!! I think the Q&A bank questions are far more harder than the specimen paper. The specimen paper seems more realistic in terms of what an ST subject should be like - you need to apply your knowledge learnt from reading the subject. Having said that, I also think some of the quantitative questions in the Q&A bank are slightly unrealistic: why examine 'CT' type questions in ST9? I think it would have made sense to ensure a CT6 pass to get the CERA qualification due to the time series element being in it - it doesn't make much sense being examined on time series in both CT6 and ST9.....It seems like the Q&A bank quantitative questions are testing your knowledge of the technical methodology rather than the application of it - the Specimen paper seems like the converse. How are you finding it??
I am not sure I thought it was more application and common sense. But I wasn't expecting any proof questions! I thought the syllabus mentions that we are suppose to apply the proof in McNeil - not know them for exams.
click here! PS bear in mind that the specimen paper was written before the new guidance on what is/is not expected of students in the exam
Specimen Exam, Q4 (ii) Hi Question 4 asks what is the most significant risk impacting the bank of hte CDO. The answer says this is reputational risk in the event the CDO doesn't perform. I would have thought it is pricing risk, in that the profit built into the product doesn't eventuate because 1) the fees are too low 2) the value of the BB bonds falls due to market conditions, resulting in lower than expected fee income for the bank The question doesn't specify how the Bank has built it's fees into the product, however there must be a margin, otherwise the bank wouldn't bother. What do others think? Cheers Georgina
