Readings - should I plan to read everything

[the_tank]

I am sure somebody asked this before. Just register for Nov part one. I only have less than 3 month and I don't think I have time to read everything. But I am afraid I may miss something. Looking at AIM statement, each reading is assigned many points that may potentially test subject.

I also bought Jorion's FRM handbook. It is pretty condensed and all the samples are real test questions. I plant o follow the book + many previous test questions. Any comments about the handbook based on your experience?

BTW, I took CFA Level 2 in June, didn't pass. But the study may help me with FRM study.

 

[Aleksander Hansen]

1)
Priority 1: Read the assigned Hull material carefully (except for operational risk that I would skip); read the assigned Tuckman carefully, read the assigned Jorion carefully. I would use David's videos, and notes but I recommend you reference and skim through the GARP reading on these central chapters.

Priority 2) Read the probability, statistics/regression hypothesis testing etc.
Read chapter from Linda Allen about Volatilities. It partly overlaps with a chapter from Priority 1 section, but you will
see some questions on this so still good to know (I would skip the other assigned Allen reading: it's just chit-chat).
Read the CAPM and performance ratio chapters.

For what i have listed under Priority 2), considering you have some CFA background, I would rely solely on David's videos, study notes and questions - in that order. In my opinion David covers these topics excellently and these topics are not as "deep" as the Priority 1) topics. I would not waste time on GARP's reading here. Especially the stats/regression, as well as the CAPM readings are far too long. You will probably spend a fair amount of time on the practice questions though but that is not a bad idea.

As for the rest I would just read the notes and watch the videos if you feel you don't have sufficient time.

2) none of the questions are actual exam questions [as David has pointed out]. GARP does not release them. It's a little misleading but they are actually questions taken from Mock Exams. They still tend to be good as a concept checker but you have to do the Bionic Turtle questions if you want to have an edge. In my opinion, Jorions handbook is useful as a reference but does not cover the material in sufficient depth.

Best advice I can give: quickly cover the readings in 1) and 2) then cover whatever else you can. It is imperative that you do the Bionic Turtle practice questions!

 

[the_tank]

I am very frustrated. I don't know how many people actually read the book and follow the AIM statement. Why would GARP design the study in such an unorganized and unprofessional way? CFA curriculum is also written by different authors, but I don't feel inconsistency. It's absolutely a bad idea just to simply compile pieces of many books together!!

 

[ShaktiRathore]

the_tank, there are lot of differences in CFA and FRM curriculum. The cfa curriculum is organised topic wise and there are ten topics each having their own segregated readings. The frm curriculum is covering vast topic areas divided into major types like credit risk ,operation risk etc. It is possible that GARP people have jumbled up topics withing the major topic type but the topics are systematically lined up. If you see the curriculum through the lens of these major topics than a lot of confusion can be fade away. cfa is highly systematic with their topics and adheres to them.I mean it is possible that Garp can subdivide the major topic areas to be more specific and clear. Than assign readings to them. Also CFA curriculum is very old and has gone several years of revisions to get the look as is seen today but garp should take some extra pain to design the curriculum in much better and learner friendly way.

 

[Suzanne Evans]

the_tank,

You may find this FAQ helpful: http://www.bionicturtle.com/faqs/category/frm-product#do-i-need-the-handbook-and-readings

Thanks,
Suzanne

 

[frm_risk]

@Suzanne Evans : Is the link above still applicable?
It directs me to a FAQs page, but it talks about FAQs for your Affiliates, not for BT - FRM. I am wondering if I need to purchase the official readings from GARP when they release them in December (most likely) or just depend on BT (I intend to purchase Tier 2).

Considering that I want to take both parts in May 2014, I wonder if I will have enough time for the readings; however, I do not want to risk not studying the material and failing the tests. It always seems that once you have covered all the assigned readings, you seem well-covered. Plus, all test prep providers, as a "disclaimer", suggest reading the assigned GARP readings.

From what I understand, the "FRM Handbook" is not so essential; so, I plan to read the assigned GARP readings/materials. Also, purchasing the individual books (even if just 1 chapter from the book is an assigned reading) is far more expensive than the GARP-compiled FRM reading books.

Is there a post where I can find answer to the question asked above? Thanks.

 

[Suzanne Evans]

@frm_risk,

You can find that FAQ here: https://forum.bionicturtle.com/threads/do-i-need-the-handbook-and-readings.6556/

 

[frm_risk]

Thanks.

I suppose I will get the GARP study material (instead of the individual textbooks). I understand that some context might be missing from the GARP books; but buying 1 book from GARP is much simpler and cheaper than buying all those individual textbooks (doesn't seem worth to purchase an entire textbook if just one chapter is needed from it).

Additionally, I will sign up for the Tier 2 for both parts which I plan to take in May 2014.

 

[elbest1542]

Hi everyone! I've got a somewhat stupid question about GARP readings...but want to be on the safer side anyway. So, I'm currently going through GARP stuff bit by bit and using BT sets to practice. Sometimes GARP prescribes reading the whole chapter while its study guide tests only a part of it. Is there any chance that issues not outlined in the study guide (but still part of the GARP material) will be tested during the exam? Say, there is a section on new risk -adjusted return measures in the prescribed reading on CAPM (Part I, Noel Amenc et al) but GARP's study guide lists only Treynor/Sharpe/Jensen/information/tracking error/Sortino indicators as specific objectives to focus on..

 

[emilioalzamora1]

Hi @elbest1542,

yes, the more you read (even if it is on Sunday night) the higher the odds you will pass. Even some plain reading can help you out in the end of the day.

Even if the study material compiled by David should cover everything you need to pass the exam with flying colours, the GARP material is the ultimate guide you should refer to (especially when it comes to plain reading - the qualitative part).

With regard to Amec's book: only the following Risk-Adjusted Performance Measures are relevant for the exam:

1. sharpe
2. treynor
3. information ratio & tracking error
4. sortino

but it does not harm to read the whole chapter in Amenc's book as these Investment Management topics (performance measures) are quite relevant in daily business.

 

[elbest1542]

@emilioalzamora1
Thanks for your perspective! Yes, GARP readings are really helpful and quite interesting (well, most of them. I am just trying to concentrate specifically on the exam-relevant parts first and will read the "exam-irrelevant" parts once i'm done with the former

 

[emilioalzamora1]

Remember: everyting in GARP's readings is exam relevant!

 

[elbest1542]

@emilioalzamora1
Exam-irrelevant as in: not on GARP's study guide but part of a GARP reading

 

[Nicole Seaman]

@emilioalzamora1
Exam-irrelevant as in: not on GARP's study guide but part of a GARP reading

Hello @elbest1542

As emilioalzamora said above, everything in the GARP curriculum is relevant and can be tested on the exam. GARP provides learning objectives when they assign a chapter in the curriculum, so you are going to definitely want to make sure that you learn the concepts in those learning objectives specifically. You will notice that our study materials follow the learning objectives in order to make sure that you are learning everything that GARP may test on the exam. I just wanted to make sure you were aware of the learning objectives, as they are not included in the actual study guide that GARP provides. The study guide just lists the GARP reading and chapter that is assigned, but the learning objectives are much more detailed as to the concepts that will be tested.

Thank you,

Nicole

 

[elbest1542]

@Nicole Seaman ,
pardon me, i have just realized that what i am referring to as the study guide is actually called "learning objectives". So, my question was as to the issues that are not outlined in the learning objectives document but are still part of GARP reading (like the afore-mentioned Amenc chapter). Thank you and apologies for this misunderstaning!

 

[Nicole Seaman]

@Nicole Seaman ,
pardon me, i have just realized that what i am referring to as the study guide is actually called "learning objectives". So, my question was as to the issues that are not outlined in the learning objectives document but are still part of GARP reading (like the afore-mentioned Amenc chapter). Thank you and apologies for this misunderstaning!

Hello @elbest1542

No problem! I just wanted to make sure that you knew about the separate learning objectives pdf because I know the study guide doesn't list them. This thread may also be helpful to you, as there is a good deal of discussion regarding study plans and tips for studying for the exam: https://forum.bionicturtle.com/threads/study-plan-guide.8670/#post-36254

Thanks,

Nicole

 

[Shazam023]

@Nicole Seaman @ShaktiRathore @David Harper CFA FRM If possible could you please provide an Optimal Reading list chapters/readings wise. I believe it's advisable to start with Quants... but more detailed break-down as which Reading should we go firs would be much helpful.

Thanks

 

[gprisby]

@Nicole Seaman @ShaktiRathore @David Harper CFA FRM If possible could you please provide an Optimal Reading list chapters/readings wise. I believe it's advisable to start with Quants... but more detailed break-down as which Reading should we go firs would be much helpful.

Thanks

I would read all of the BT notes, they aren't too long and are concise. David takes the time to hash out what is important so you don't have to waste your time. Supplement this with GARP text if needed. Search for answers to questions on the forum, or ask if you cant find a thread. I feel like 90% of the time someone had the same question as me.

 

[Amarnadh D]

Hi Shazam, It's better to start with basic statistics, even if not all the concepts in quants. This would be very much helpful to understand the concepts in other books and to practice questions. Ensure, you cover entire quants book before starting Valuation Risk models.

There're certain concepts like bonds and derivatives covered in both FMP & VaR books. hence it is advisable to study them in one go - very much helpful.

I personally feel, to cover theory & problems involved concepts hand by hand. You will not feel bored with either one.

 

[gprisby]

Hi Shazam, It's better to start with basic statistics, even if not all the concepts in quants. This would be very much helpful to understand the concepts in other books and to practice questions. Ensure, you cover entire quants book before starting Valuation Risk models.

There're certain concepts like bonds and derivatives covered in both FMP & VaR books. hence it is advisable to study them in one go - very much helpful.

I personally feel, to cover theory & problems involved concepts hand by hand. You will not feel bored with either one.

I would read and cover the sections in order. Why not review Foundations before quant? Get your algebra fresh. I felt the exam had a good amount of Foundations theory questions when I took it a few weeks ago too. Definitely 20% of the exam. Just my opinion, but I would just go in order.