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FRM 2008

So you’re well into your studying now, Doubledip…

What material do you guys use for practicing ? (I’m thinking on some sort of question bank, mock exams, etc.)

Mediocrity knows nothing higher than itself, but talent instantly recognizes genius. (The valley of Fear [1914], Sir Arthur Conan Doyle)

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Financial Risk Management Handbook - 4th Edition - by Philippe Jorion

is this enough for the test or should it be supplemented with schweser ?

Definitely supplemented by Schweser, IMO.

I think Jorion’s FRM Handbook is an excellent reference guide “after” learning the material.

bostonkev,

has schweser started shipping the material?

u heard about bionic turtle notes?

equity_research_nds,

Schweser’s ETA is 6/30…haven’t heard of bionic turtle notes.

Here is the Schweser QBank topic list and question breakdown for FRM 2008, whoo hoo!
142 days left until the November 15th exam!

Theme song = Bloodsport Theme (Jean Claude Van Damne) and/or Eye of the Tiger

——————————————————–
Category Total Viewed Incorrect Used Score
2008 FRM 1441 0 0 0% 0%
——————————————————–

Quantitative Analysis 406 0 0 0% 0%

1: All the Math You Need… And No More 8 0 0 0% 0%
2: The Nature and Scope of Econometrics 9 0 0 0% 0%
3: Review of Statistics I: Probability and Probability Distributions 36 0 0 0% 0%
4: Characteristics of Probability Distributions 80 0 0 0% 0%
5: Some Important Probability Distributions 32 0 0 0% 0%
6: Statistical Inference: Estimation and Hypothesis Testing 78 0 0 0% 0%
7: Basic Ideas of Linear Regression: The Two-Variable Model 21 0 0 0% 0%
8: The Two-Variable Model: Hypothesis Testing 30 0 0 0% 0%
9: Multiple Regression: Estimation and Hypothesis Testing 69 0 0 0% 0%
10: Quantifying Volatility in VAR Models 29 0 0 0% 0%
11: Value at Risk 14 0 0 0% 0%

Market Risk Measurement and Management 402 0 0 0% 0%

12: Hedging Strategies Using Futures 13 0 0 0% 0%
13: Determination of Forward and Futures Prices 7 0 0 0% 0%
14: Interest Rate Futures 5 0 0 0% 0%
15: Swaps 10 0 0 0% 0%
16: Properties of Stock Options 19 0 0 0% 0%
17: Trading Strategies Involving Options 15 0 0 0% 0%
18: Binomial Trees 21 0 0 0% 0%
19: The Black-Scholes-Merton Model 15 0 0 0% 0%
20: Greek Letters 19 0 0 0% 0%
21: Volatility Smiles 4 0 0 0% 0%
22: Exotic Options 7 0 0 0% 0%
23: Commodity Forwards and Futures 16 0 0 0% 0%
24: Bond Prices, Discount Factors, and Arbitrage 2 0 0 0% 0%
25: Bond Prices, Spot Rates, and Forward Rates 16 0 0 0% 0%
26: Yield to Maturity 16 0 0 0% 0%
27: Generalizations and Curve Fitting 17 0 0 0% 0%
28: One-Factor Measures of Price Sensitivity 58 0 0 0% 0%
29: Measures of Price Sensitivity Based on Parallel Yield Shifts 12 0 0 0% 0%
30: Key Rate and Bucket Exposures 4 0 0 0% 0%
31: The Science of Term Structure Models 14 0 0 0% 0%
32: VAR Methods 51 0 0 0% 0%
33: VAR Mapping 6 0 0 0% 0%
34: Stress Testing 19 0 0 0% 0%
35: Foreign Exchange Risk 5 0 0 0% 0%
36: A Firm-Wide Approach to Risk Management 18 0 0 0% 0%
37: Identifying and Managing Cash Flow Exposures 10 0 0 0% 0%
38: The Demand and Supply for Derivative Products 3 0 0 0% 0%

Credit Risk Measurement and Management 180 0 0 0% 0%

39: Credit Risk: Individual Loan Risk 24 0 0 0% 0%
40: Sovereign Risk 10 0 0 0% 0%
41: External and Internal Ratings 10 0 0 0% 0%
42: Default Risk: Quantitative Methodologies 3 0 0 0% 0%
43: Loss Given Default 4 0 0 0% 0%
46: Portfolio Effects: Risk Contributions and Unexpected Losses 1 0 0 0% 0%
47: Measuring and Marking Counterparty Risk 6 0 0 0% 0%
48: Economic Capital for Counterparty Credit Risk 5 0 0 0% 0%
49: Credit Risks and Credit Derivatives 45 0 0 0% 0%
50: Synthetic Structures 18 0 0 0% 0%
51: Credit Risk Portfolio Models 18 0 0 0% 0%
52: Credit Risk Management and Strategic Capital Allocation 12 0 0 0% 0%
53: Credit Derivatives 6 0 0 0% 0%
54: Securitization 17 0 0 0% 0%
55: Understanding the Securitization of Subprime Mortgage Credit 1 0 0 0% 0%

Operational and Integrated Risk Management, Legal 262 0 0 0% 0%

56: Extending the VAR Approach to Operational Risk 36 0 0 0% 0%
57: LDA at Work 17 0 0 0% 0%
58: Operational VAR: A Closed-Form Approximation 3 0 0 0% 0%
59: Technology and Other Operational Risks 8 0 0 0% 0%
60: Model Risk 14 0 0 0% 0%
61: Aligning Basel II Operational Risk and Sarbanes Oxley 404 Projects 15 0 0 0% 0%
62: Enterprise Risk Management: Theory and Practice 6 0 0 0% 0%
63: Investors and Risk Management 20 0 0 0% 0%
64: Creating Value With Risk Management 5 0 0 0% 0%
65: Risk Measurement, Risk Management and Capital Adequacy in Financial Conglomerates 17 0 0 0% 0%
66: Capital Allocation and Performance Measurement 13 0 0 0% 0%
67: Case Studies 14 0 0 0% 0%
68: Identifying, Measuring, and Monitoring Liquidity Risk 5 0 0 0% 0%
69: Regulation 12 0 0 0% 0%
70: The Report of the Counterparty Risk Management Policy Group II 9 0 0 0% 0%
71: Basel Reference Readings 68 0 0 0% 0%

Risk Management and Investment Management 191 0 0 0% 0%

72: The Capital Asset Pricing Model and Its Application to Performance Measurement 45 0 0 0% 0%
73: Performance Analysis 16 0 0 0% 0%
74: Portfolio Risk: Analytical Methods 15 0 0 0% 0%
75: VAR and Risk Budgeting in Investment Management 8 0 0 0% 0%
76: Hedge Funds: Past, Present, and Future 14 0 0 0% 0%
77: Can Hedge-Fund Returns be Replicated? The Linear Case 21 0 0 0% 0%
78: What Happened to the Quants in August 2007? 18 0 0 0% 0%
79: Individual Hedge Fund Strategies 31 0 0 0% 0%
80: Benchmarking Hedge Fund Performance 5 0 0 0% 0%
81: Funds of Hedge Funds 8 0 0 0% 0%
82: Style Drifts: Monitoring, Detection, and Control 3 0 0 0% 0%
83: Private Pools of Capital 7 0 0 0% 0%

nodes Wrote:
——————————————————-
> Even if some people could say you /bostonkev/ are a exam
> collectionner … …

Well, among the many things people collect, knowledge seems to among the better choices… I heard about one guy collecting mountaintops: he climbed all the well-known European mountains and knocked off a rock at the top…

A bit depressing to hear about the low pass rate though (40%)… the possibility to bring your lunch into the exam in a plastic ziplock bag seems a real bonus … :)

When I read on the web about the PRM exam, I was surprised that no calculator is allowed. You’re supposed to use the one included in Windows. The textbooks also seem more “mathematical” to me than the corresponding textbooks for the FRM exam. Jorion’s book also seemed to have a lot of “basic” material “missing” - I’ve only browsed it vert casually so far. Bostonkev seems to be correct about it being “an excellent reference guide ‘after’ learning the material.”

Mediocrity knows nothing higher than itself, but talent instantly recognizes genius. (The valley of Fear [1914], Sir Arthur Conan Doyle)

I am using ************ -excellent screencasts. the notes are too concise though. a bit like your secret sauce stuff from schweser. hull and jorion as reference texts that look to be enough for the frm exam. most of quant and market risk are essentially covered by CFA L1 and L2. so, i am kind of fast forwarding thru stuff and looking to start credit /operational risk stuff.

the prep for frm will nicely segue into my prep for stat and fin econ CTs for the actuarial exams(which seem to be infinitely more difficult than either FRM or CFA).

Dsylexic….
i am also planning to sit for FRM…..
read my post on kprofessional.com

and reply!!

I just finished organizing the materials for the exam and laying out an attack plan…
here’s a (very) approximate page count:

1. 1200 [free readings]
2. 2000 [all paid readings, Hull (not included but) estimated at ~200 pages]
3. 1400 [Schweser Books 1-5 + practice exam book]
4. 550 [Schweser QBank, print-out estimate]
5. 700 [Jorion]
6. 550 [past/practice GARP FRM exams 200x, x={0,1,2,3,6,7,8}]
= 6400 [total]
————————————————–
Comments:
1. I think you can get by even when neglecting a significant portion of the free/paid readings and Jorion since it appears that Schweser did a good job.
[I’m open to being corrected on this point, lol.]
2. This page count is an upper limit, I estimate the effective number of pages to be about half.
3. Only 138 days left.
4. Holy crap, ZOMG!

I have started with Phillipe Jorion (4th edition) as of now. Have already completed the operational risk part. I need to finish off with Jorion in about 15 days time… i.e. by the 15th of the month!
Then I plan on taking one-two of the GARP official tests to find out which are the areas that require focus.
I start with Schweser material thereafter and try and finish the stuff by around September 15.. ie approximately 60 days.
October and November should be enough for Qbank and quicksheet and other test papers.

>>> This seems to be the ideal game plan as of now, given my situation and considering the fact that I can’t expect myself to read up and retain more than 25-30 pages each day!

People one thing is missing here… we do NOT have an active forum (its just this thread that we have) to discuss individual questions.

If anyone of you took the CFA L1, you probably know what I am talking about…. discussions on each and every question and a thread for the same used to help us all a lot!

Chad, is it viable for you to add a forum for FRM too?? Try and see if you can get schweser and Bionic Turtle to pay-up for maintenance!!!

Others please pitch in with your ideas as to how we should go about!!

I’ve just listened to the introductory kick-off lecture by S******* and they mentioned that Jorion’s handbook hasn’t been revised since they (GARP) shifted the contents of the exam, so they warned that Jorion’s book might be slightly out of date.

Is anyone of you posting on GARP’s discussion forum? They’ve got two: one for forming study groups and one for more general questions.

Mediocrity knows nothing higher than itself, but talent instantly recognizes genius. (The valley of Fear [1914], Sir Arthur Conan Doyle)

************ has a great forum. i believe it is free for non paying members as well

Ya Bionic Turtle Forum is also good and for non-paying memebers as well. But we are so addicted to watching this forum. I suggest to perhaps adding a one more tab to this will work.

Guys …Schweser notes for CFA are really good. But happened to look last year FRM notes by Schweser. To me they looked very inadequate. Did anyone use those notes last year?

Maybe this thread is good to discuss “about” the FRM,
whereas another forum and/or section of AnalstForum might be good to discuss the concepts/questions/calculations/etc. in the FRM itself.

The mission of AnalystForum is:
“To provide every CFA® charterholder and candidate with the information and communication necessary to advance the profession to its highest level.”

I think that it would serve the mission well to have another section in AnalystForum dedicated to
“other designations” since it seems CFA charterholders are pursuing other designations to supplement their CFA charter to enhance their professional skills.
[Notice the language…I’m implying…and do believe…that the CFA program is the core.]

Chad, what do you think?

I just started with the Shweser material. Do you need to do the other readings?

In that case Chad should do the CPA (taken by more people), MBA, and PRM as well.

All I have to say, PtrainerNY…is that PRM sucks!!!  :)

amoynahan Wrote:
——————————————————-
> I just started with the Shweser material. Do you
> need to do the other readings?

I think Schweser is a good guide, but a bit skimpy on the details in some areas.

For example, I just finished up reading Schweser Volume 2 and it seems they do a lot of just stating equations out of nowhere and you just have to memorize them to plug/chug…like the important BSM equation!

I hate just taking equations as given without seeing the derivations, and I’m definitely going to read Hull (and the other source materials) for a better understanding and proofs.

In the end, I think you can still pass the exam if you treat equations as “black boxes” without too much actual understanding. For me, I’m treating the FRM as a good starting point (since the threshold to pass is pretty low and IMO not really indicative of too much) to learn about risk management, nothing as a huge end in itself.

I think to “do” risk management, instead of “knowing about” general risk management concepts, you need at least a master’s level understanding…something I estimate is at the very least 5x FRM in terms of depth and breadth.

Perhaps my lack of respect for simply passing the FRM was due to the thread below…horrible scores and funny/insecure comments…but yet still “pass.”

http://www.analystforum.com/phorums/read.php?1,649371,page=1

Is the PRM really easier than the CAIA? I’m surprised….

Is the PRM really easier than the CAIA? I’m surprised….

sternwolf,

by using “PRM” up there, did you mean “FRM”? If so, I am referring to:

1. the skimpiness of Schweser notes (but still their being a very good guide nonethless)

2. my guess as to what actual risk management entails…which I estimate is a lot harder than simply passing the FRM

3. not necessarily making a statement FRM or CAIA
(though if I were forced to,
and also putting aside the obvious points of the different nature/aim/scope of these different exams, I would opine that the “workload” (and difficulty level) is something approximately like…
CAIA L1 + CAIA L2 = FRM .
I know this is a hard comparison to make, if even possible, but that’s a first order, imperfect, fuzzy comparison)

[Just very obsessive since I’m facing such a ridiculously large volume of material and tests in the next two years.]

Dsylexic Wrote:
——————————————————-
> I am using ************ -excellent screencasts.

In what way “excellent”? Excellent as in you finding the material easy to understand and questions easy to solve, or excellent as in a good and entertaining lecturer?

Mediocrity knows nothing higher than itself, but talent instantly recognizes genius. (The valley of Fear [1914], Sir Arthur Conan Doyle)

I was talking about the PRM…I think on an earlier post you said it was actually easier than the CAIA..

MehdiOchre Wrote:
——————————————————-
> Dsylexic Wrote:
> ————————————————–
> —–
> > I am using ************ -excellent screencasts.
>
> In what way “excellent”? Excellent as in you
> finding the material easy to understand and
> questions easy to solve, or excellent as in a good
> and entertaining lecturer?

to the point,covers all AIMS, top class visuals .not entertaining at all - i am not a fan of David Harper’s voice. if you learn better with visual aids, BT will be a good choice.

They have additional spreadsheets to explain the more abstruse concepts . there arent many quizzes uploaded yet,but DH insists on writing up new questions every year.so there arent recycled and outdated questions like schweser q bank.

sternwolf Wrote:
——————————————————-
> I was talking about the PRM…I think on an
> earlier post you said it was actually easier than
> the CAIA..

I was basing my opinion on the fact that it seems “only” Level 3 PRM is anything special or difficult, with the other levels being standard covered CFA material.

So if you aren’t doing CFA, maybe my rankings are off…

Furthermore, there is decent potential that I’m being an assclown and not know what I’m talking about since I haven’t completed any of them yet…these opinions are all based on the AF search function and what little time I’ve spent studying for these tests. My opinions will have more weight after I’ve completed all of the designations…hopefully in two years.

How do I watch the FRM Kick Off from Schweser? I called them and they say there is no kick off. What’s the dilleo?

You can see the video here http://www.schweser.com/frm.php over to the right, where it says

Free Webcast
Overview Webcast
for the 2008 FRM Exam