AFM*** ACCA Paper AFM June 2019 Exam was.. Instant Poll and comments ***

louiseabigail: I think you will pass. Very few students will pass AFM.

The June paper is in the past papers on the ACCA website. It says Sample March/June but is just the June paper, quite interesting looking back and reading the questions without the time pressure.

Has anyone attempted to solve the paper yet?

I attempted the NPV question again last night and although I done the same as in the exam, I got a different NPV result, ($2k), so there is most certainly a calculation error there. Having gone over the question paper again I think I am looking at a score of between 45 and 55 (so, at least somewhere in the middle would do!). Always seems like such a long wait, if anything, just seriously hoping I haven't failed by a mark or two. The time pressure is really too much in these exams, affects your ability to think straight and concentrate fully.

Has anyone noticed, they have included page 24 on the back of the exam......the marking scheme for questions 2 and 3??

I attempted the NPV and got negative $1.614m which I think is in line with what I got in the exam. Once the Black Scholes Model is applied I think I got a positive £800k in the exam. I haven't really bothered to recalculate this part of the question or the rest of the exam. Yes I did notice the mark allocation on page '24' for questions 2 & 3, interesting to see and help with judgement of potential outcome. I believe I have achieved between 30 and 35 based on the mark allocation for Section B so only needing 20ish marks from Section A. Fingers crossed!! An estimated score of 45 to 55 does seem like you might scrape a pass, this paper seems to have lots of marks that you can pick up if workings are neat and the examiner can see where you are going with something, even if you make a calculation error.

With a score of 30-35 you should be ok for a pass....I struggled for time when it came to question 3 and just didn't have time to think, I lost a lot of marks there on stuff I knew how to do because of it. A lot of my effort went into question 1, with the marking scheme looks like I'm running around 25 for questions 2 and 3! Question 1 I think I let myself down with the two 10 mark parts and suddenly thinking that when it came to the call and put option calculations, that I didn't use a minus when calculating the "e" figure - not sure how that will affect my marks. Its going to be close for me..... got to love the wait ha!

Yes time management was an issue, I also had little time for question 3. It took a long time to work out what the examiner was asking when it came to the Black Scholes elements of the question. I would think that not using the minus for e would only lose you one mark for a calculation error and as long as your advice in the report used your own figure then you get all other credit for that question. I spent so much time on question 1 that I just ignored the 10 mark question on ethics and moved on. The wait is really awful, I found it was easier last time as I knew I had failed. Is this your last exam?

Fingers crossed for us both! No, its not my last, I still have ATX and SBR to do....which I wanted to try and sit both in September, So I would really like to just get passed this AFM exam Is it your last one?

Yes this is my last one, Ethics, PER and 36 Months completed so it's the last hurdle. I can't speak from personal experience of ATX but from other I have spoken to ATX is really quite a difficult paper, not too sure I would want to sit it with SBR which is also quite difficult, I sat it whilst it was P2 and found it tough.

The study book for ATX is a ridiculous size, so I am trying to just plough through it. (I don't really give myself a break between exams) As I have found with AFM, you need a bit of luck in the exams, so even if I just 100% concentrate on ATX for September, there is no guarantee I will pass when the exams come along. So, I am sort of going to try and "attempt" them both in September. The next 6 weeks could change that. Once my AFM results come in and I can see how I am progressing through ATX I shall re-evaluate my plans, I hate that we have to book the exams so early, wish they could be booked nearer the time! Best of luck with this last exam, I am in the same boat (PER, Ethics and 36 Months complete, so just want the exams done with. It's been an intense 2 years! lol), so I can imagine the wait on the very final exam

I definitely couldn't have got through without taking a break. I definitely agree that sometimes a little luck comes into it as everyone has the topics they don't really struggle with. Yes it would be good if you could just confirm you want to sit an exam and then tell them which one nearer the time. Good luck with your result and with studying for the other two :)

So, was anyone able to re-solve the exam paper fully or partially now that it has been out for a few days?

I have just had a look at the paper again as I await the result, hoping to get an idea of the possible answers. I have calculated an initial NPV of -$1,614,194. When the option to sell (Put Option) is included using D1, D2 and ND1 and ND2 provided, I calculate that the option is worth $2,409,124. When this is combined with the NPV the project is worth $794,930. I am not certain about my NPV calculation being correct but it rings a bell from the exam. I also feel I can prove the NPV is roughly correct. When looking at the question to explain the initial variable for the options calculation I get the following: Pe is $30,000,000 offered by Honua Co. Pa is $36,450,554 which is the PV of years 3 and 4 in my NPV calculation. I have done the calculation myself for the figures that we were asked to explain the variable for and I have got ND1 of 0.7796 and ND2 of 0.3553 using my NPV from above.