practice problems from GARP notes

[alokj]

can i find the solutions for problems from GARP notes on this site? If yes how to look for them? if they are not available, it would be nice to have them.
or how can i search for practice problems based on a specific chapter from the notes? thats how i am following up on my preparation plan.

Regards,
AJ

 

[Suzanne Evans]

can i find the solutions for problems from GARP notes on this site? If yes how to look for them? if they are not available, it would be nice to have them.
or how can i search for practice problems based on a specific chapter from the notes? thats how i am following up on my preparation plan.

Regards,
AJ

Hi AJ,

I'm not exactly sure what you are referring to when you say GARP notes. Here are the contents on GARP's site that I see they offer: http://www.garp.org/frm/study-center/study-materials.aspx

Can you provide me further explanation please?

Thanks,
Suzanne

 

[David Harper CFA FRM]

AJ,

We also copied the GARP sample practice exams to forum boards:

• https://forum.bionicturtle.com/forums/p1-2012-practice-exam-part-1.75/
• https://forum.bionicturtle.com/forums/p2-2012-practice-exam-part-2.77/

These are the same as published, only difference is occasional thread conversation (e.g., error). Eventually we will annotate these. Thanks,

 

[alokj]

suzanne,

there are some practice problems after every chapter in FRM Part I Books (one i received from GARP). I read a chapter and solve the examples at the end of the chapter. But i couldn't find the solutions of these problems, so there is no way for me to check if my answers are correct or not. After I finish reading all chapters, then its ok to go though all the problems at once (as its on the site). But while I am reading chaper by chapter, its kinda convenient to solve the problems and check the correctness of the answers.

It would have be useful if problems are categorized chapter wise along with the topic wise classification we have now.

Let me know if you still have confusion.

Thanks,
AJ

 

[David Harper CFA FRM]

Hi AJ,

We write our own questions, organized by topic in the Study Planner http://www.bionicturtle.com/my-account/study-planner

Are the questions just the naturally occurring end of chapter questions, or has GARP added their own?
e.g., do you have any for 10. Rachev's Chapters 2 and 3?

 

[Suzanne Evans]

suzanne,

there are some practice problems after every chapter in FRM Part I Books (one i received from GARP). I read a chapter and solve the examples at the end of the chapter. But i couldn't find the solutions of these problems, so there is no way for me to check if my answers are correct or not. After I finish reading all chapters, then its ok to go though all the problems at once (as its on the site). But while I am reading chaper by chapter, its kinda convenient to solve the problems and check the correctness of the answers.

It would have be useful if problems are categorized chapter wise along with the topic wise classification we have now.

Let me know if you still have confusion.

Thanks,
AJ

Hi AJ,

We have contacted our contact at GARP to clarify. We will get back with you ASAP!

Thanks,
Suzanne

 

[Ankur S]

AJ/David/Suzanne,

Think i can help since i am L2 member and have followed BT and GARP books also.

The questions at the end of each chapter in garp books are simply picked up from the chapters of books that GARP puts in AIM. Dont think GARP is putting any questions.

E.g. in L2 i am reading Jorion Ch7 and 17 in Investment topic. GARP simply copies the whole chapters along with questions and related appendix from Jorion and puts it in its Investment book that GARP prints.

Hope its not confusing.

AJ,
You wouldn't find answers to those on BT as David has his own set of vast and variety of questions, which i found to be engaging as well and it really helped me to clear L1.

My 2 cents.

Ankur

 

[ChadWOB]

I called GARP about this when I was studying for the November 2011 Lev1 exam using the GARP issued handbook. The questions at the end of each section are plucked straight from the text from the assigned readings. GARP advised me that they did not have the proper licensing to publish the answers, so that is what you can't find them! They told me I'd have to buy the answers seperately and directed me towards Amazon.com.

This is the primary reason I did not purchase the handbook for Lev2 from GARP, and went with Bionic Turtle and Schweser. I'd suggest doing the same. Schweser provides a lot of qualitative practice questions and BT via David gives detailed explanations on the quantitative stuff and gives even better insight into the past testability of topics so you can prioritize yoru time better.

 

[Aleksander Hansen]

One way to get around it is to type in the question in Google books. It will let you view 4 pages or so around the paragraph you select after searching. Same thing on Amazon "look inside the book".
Do it over the course over a couple of days and you should have pretty much all the answers from the various readings.

If you want to get fancy and do it all in one go, you can have your IP generated by protective networks: networks made to get around censorship in countries like China, Iran etc. it randomly assigns you IP addresses from a wide range of countries and switches it every few minutes so one cannot be tracked.
(good way not to get viruses or avoid getting hacked too but that's beside the point).
It is perfectly legal since your're not violating the terms and conditions on Google or Amazon (albeit that may change if a lot of people start doing it).

 

[David Harper CFA FRM]

Aleks, This doesn't apply to May, but if you (or anyone) locates a solution text that you think we should make available, please let me know: I can have somebody enter solutions manually; e.g., as we did selected Hull here @ http://forum.bionicturtle.com/forums/p1-p2-textbook-options-futures-derivatives.31/
(I may have somebody enter all of the 8th Ed Hull ... not sure)

The issue, from my perspective, is that some of these texts don't seem to actually have solutions; e.g., Tuckman, Jorion ... and some readings don't have questions (hence my original confusion) but if you find a text you think we should incorporate (subject to fair use modifications, of course), please let us know!

 

[Aleksander Hansen]

Sure,

I'll let you know what I come across.

Usually they have their TA's write up solutions for exercises if it's not published in the book (or in a separate solutions manual like Hull) so I'm sure something is out there.
I'll look at the universities they are at to see if I know anyone in their departments that I can go through, otherwise I'll just shot them an email [post exam]

 

[akrushn2]

Hi I just want to come back to this topic. I understand that the study notes contains some of the end of chapter questions thats in the official books. Do all study notes contain this or is it only a few? I could not find the actual practice questions in the official books.

 

[Nicole Seaman]

Hi I just want to come back to this topic. I understand that the study notes contains some of the end of chapter questions thats in the official books. Do all study notes contain this or is it only a few? I could not find the actual practice questions in the official books.

Hello @akrushn2

We do not always provide the end of chapter questions. We include them in the notes if we feel that they would be helpful. I'm not sure if you are referring to the GARP books or the actual source books from the author when you say "official books", but we get all of the EOC questions directly from the source book (not the GARP books).

Nicole

 

[tornellFRM]

hi @David Harper CFA FRM ,

Can you explain the answer to the question 8.8 from GARP20-P1-book2? I thought that when scaling, the a has to be multiplied by 12 but the SE by squareroot of 12. So I don't understand why the t-stat is unaffected.

Q:The models were estimated on monthly returns. What is the estimate of the annualized a for the beer and liquor industry portfolio (a=.517)? What is the t-statistic for the annualized a?

A: The annualized a is 12an = 12 * 0.517 = 6.204%. The t-stat is unaffected because the standard error is also scaled by 12.

Thanks.

 

[David Harper CFA FRM]

Hi @tornellFRM is there any reason you are re-posting the same question (cc @Nicole Seaman )?

 

[tornellFRM]

Hi @tornellFRM is there any reason you are re-posting the same question (cc @Nicole Seaman )?

I accidentally posted when I refreshed the tab... I tried to erase it but I could not find the option to delete it.

 

[David Harper CFA FRM]

@tornellFRM okay thank you. We just discourage "bumping" (re-posting) for what I hope are obvious reasons. I didn't immediately reply because I couldn't instantly decide if the answer is wrong (probably) or just meaningless (possibly). Whenever I disagree with GARP's materials, which is often, I try to be very careful because if my disagreement is incorrect, then I've done a real disservice to our members. Consequently, a proper reply to your question is time-consuming because I should go to the original data and make sure i've got the whole context. I will just say that

(1) I get a bit conceptually stuck on the idea of "annualizing a t-stat;" what exactly does it mean? I could make an argument it is a meaningless idea as a t-stat is a standardized (of the raw distance between the observation and a zero null) standard deviation of an observed coefficient. It's not the same thing as annualizing a monthly standard deviation. The answer given (i.e., same) actually reinforces an argument that time-scaling a t-stat is meaningless in the first pace.

(2) Per Amenc, the information ratio can be viewed as (or, actually really is) an annualized t-stat, where the relationship is given by IR = t-stat / SQRT(T) or t-stat = IR*SQRT(T); e.g.,. see https://forum.bionicturtle.com/threads/question-on-t-statistic.2588/post-8122

So if I were forced to annualize a t-stat, and it meant something different than re-running the regression with a new periodicity (?), then like you, I would scale the SE with a SQRT(T). Put another way, I'd scale the t-stat like I'd scale the IR, by multiplying by SQRT(T) which is just to multiply it by [T / SQRT(T)] = [SQRT(T)*SQRT(T)] / SQRT(T) = SQRT(T); i.e., i'd be linear in the numerator but SQRT(T) in the denominator. But, again, I'm not certain this is even meaningful .... Thanks,

 

[tornellFRM]

Thanks for your reply @David Harper CFA FRM. Indeed, the question is confusing. As you said, the t-statistic is already standardized so it should be unaffected. Yet, it is weird to scale by 12 the SE. Thanks also for sharing the explanation and link of multiplying by SQRT(T) when annualizing. It was helpful for making the conceptual link with the IR.

 

[David Harper CFA FRM]

Sure thing @tornellFRM I haven't had a chance to further inspect this question, but one thing freshly occurs to me: multiplying the t-stat by sqrt(12) by way of increasing the value might render an insignificant coefficient into significance. You wouldn't do that, right? For example, the monthly Consumer Goods t-stat is 1.31, presumably you wouldn't conclude its annualized t-stat is 1.31*sqrt(12) = 4.54. That would be tantamount, I suppose, to multiplying the SE by 1/SQRT(12) as if the sample size were multiplied by 12 given the same (raw) coefficient. It would be silly to say "Consumer Goods alpha is insignificant on the regression we actually ran, but it is suddenly significant if we consider the annualized t-stat!" The more I think about it, the more I think maybe it's just meaningless to naively "scale" the t-stat given. Thanks,