PRM Exam 3. Are the questions quantitative?

[Anonymous]

Hi Risk Prep community!

I’m writing the “Best Practices” exam (nr. 3) in a few days. My background is in math, but I have forgotten a lot! I wrote exam 1 successfully, and will write 2&4 next period.

My question is whether the actual exam is as quantitative (probabilities, hedge ratios, GARCH model definitions etc) as the database questions here at Risk Prep? I would expect these questions on exam 2, not 3.

Thanks!

[Anonymous]

Any other advice for the exam is of course also welcome

[Anonymous]

Wrote it 2 times. It is more conceptual in nature (the one based on the old and not new syllabus to be revealed in the next few months). Quantitative questions include Var, Credit Var, Joint Probability, Joint Correlation, Expected Loss, Distance to Default, Knowledge of Black Scholes, Questions on Poisson Distribution, etc….Conceptual ones are those found in the syllabus I suppose. Mind you that some of the questions get recycled and as other forums demonstrate, the supplementary papers (on Liquidity on The Financial Crisis) are used as well. Riskprep being an invaluable resource of course. The administrator may remove this post if posting questions from the PRM is a violation.

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