Overlap with CFA Curriculum?

I am taking CFA L3 next week and I’m considering doing the full FRM in November. I know there are a number of other people planning to do the same. My question is: how much overlap is there between the two curriculums? Should 20% of the material already be familiar to me? 40%? Thanks in advance for your thoughts!

30-40%. It will all be familiar besides the information regarding operational risk and stuff like Basel II.

FRM Quantitative Analysis = Quants in CFA level 1 and 2 (80% overlap); FRM Market RM = Forwards, Futures, Swaps, Options and options pricing with put-call parity, binomial models, Greeks, BSM model, VAR, so you know it good from CFA level 1,2,3 (90% coverage); Credit RM is something new but not extremely difficult (10% overlap); Operational RM is new for Basel and some other topics. Investment RM is 70% overalp with CFA level 1-3.

I just did my Level 1. Think I did well and will most probably pass. Overall how much of an overlap do you think the full FRM has with CFA L1

10%…maybe. You should be O.K. on quant…

crimsongirl Wrote: ------------------------------------------------------- > I am taking CFA L3 next week and I’m considering > doing the full FRM in November. I know there are > a number of other people planning to do the same. > My question is: how much overlap is there between > the two curriculums? Should 20% of the material > already be familiar to me? 40%? > > Thanks in advance for your thoughts! me too gave level III and giving FRM FULL this Nov…between that hoping and praying that i clear L3… 40 % of the portion would have been covered fully in CFA somewhere… I am still confused about the material though… 2 alternatives:- 1.Core reading+Free Material Online+Jornian Hand Book+Hull 2.Schweser Any idea which one better caz i have heard that schweser is not upto the mark as it is for CFA… Aslo if i plan to get alternative 1 material for 2009 would it be OK if I use older version of schweser(2007 or 2008)??

exact same boat here - wrote lvl 3 want to give FRM a go, only have 07 schweser notes and is overconfidence because thinks it has a high level of overlap with CFA, but is that the reality?

monki Wrote: ------------------------------------------------------- > exact same boat here - wrote lvl 3 want to give > FRM a go, only have 07 schweser notes and is > overconfidence because thinks it has a high level > of overlap with CFA, but is that the reality? I have asked 2 of my friends who gave level III wit me and who have already done with FRM…they say more of level II stuff will be useful…and atleast 40 % is overlap…ditto… on the personal note looking at the study guide and the AIMS of FRM i feel that most of the topics, i have come across somewhere in the CFA curriculum…in FRM those topics will be in more details… But i am trying not to be very much overconfident and its not hard…i just have to remember my Level III paper and i bought down to where i belong…

So you are saying if one is a L2 candidate the overlap is 40% or for L3 candidates the overlap is 40%. Thanks for checking.

SalZ Wrote: ------------------------------------------------------- > So you are saying if one is a L2 candidate the > overlap is 40% or for L3 candidates the overlap is > 40%. Thanks for checking. The overlap is more the level II curriculum then Level III…

Just meaining that somebody who passed the CFA would be familiar (but maybe not master) 30 to 40% of the FRM. Of course, those who hadn’t got that far with the CFA would be familiar with less.

It is sort of annoying to see people keep quoting the similarity between CFA and FRM. I passed both exams but I wouldn’t treat them alike at all. Even though the curriculum might sound they are overlapped but they are “tested” very differently. Just check out some mock exams from the FRM.

Im asking the overlap question to just get some kind of an idea as to how much of the material would be totally new to me which translates to spending more time in understanding the concepts. I am making sure I dont underestimate the effort - assuming one has mastery over 40% of the overlap would be a huge mistake and could cost dearly…not sure why it would annoy anyone…

I just think the question was incorrect in the first place and could easily misguide your effort and attention in the preparation. An acid test: anyone who just sat for CFA level II and III (assuming the CFA knowledge still fresh and I exclude level I here because the level of sophistication in the FRM is far beyond CFA level I) this June could try out one of the mock exams provided by GARP and you will probably have any idea whether quantifying the % of overlapping is a logical question to begin with…!

Philip: Think you may have missed spirit of these forums. It is to share knowledge and opinions. Not to lecture and pontificate. Have checked with one of the best online professors and he refers to a 30% overlap with CFA material. Granted the questions may be “tricky” but have just written CFA III, believe I have seen " tricky" - at leat in the multiple choice. Regards,

All professional exams are tricky to some extent. But the issue here is not tricky or even difficult. FRM and CFA are different exams. A bit annoyed because I presume people do thorough research before they dive into the exam arena. Of course, anyone can quote whatever % he or she feels comfortable. Again, passing CFA exam and passing FRM exam doesn’t have causal relationship, (even I passed both in the same year) it is in his or her own risk to think CFA materials will help passing FRM. My ~0% quotation is just another opinion, why get offended?

With no offense intended, I think the questions being asked are part and parcel of the “thorough research” you mention in your post. Tricky or not, if the concepts are the same, its familiar material to some extent vs. starting something that you have never read about. Thats all there is to it. Why get annoyed? In the end its different strokes for different folks but questions will always be asked and thats what these forums are a great venue for. Personally, I think you need to lighten up a bit.

SalZ, Noted. I just think it is a wrong path to think CFA and FRM study materials are somewhat related and by doing the former will help the latter or vice versa. I don’t think by giving the % quotation is somewhat responsible. Even though they may be somewhat related but it will be a more prudent approach to assume CFA program “would not” help you preparing for the FRM exam. (I honestly admitted the vigor of the CFA programs might give you some “implicit” competitive advantages) In my opinion, it will not cut short the time and effort of preparing FRM with the prior CFA exams preparation experience compared to someone who hasn’t sat for the CFA exams at all.

Got it. Thank you for your input. On a different note, what material did you use for the FRM and what was your strategy. Anything else you feel needs mention (# hours, resources for preparation etc) to help the candidates sitting for the Full FRM in Nov 09 would be greatly appreciated. Cheers.

I would say using Schweser for the question practice, FRM handbook, Bionic Turtle and GARP’s mock exams. Some of the materials in the FRM is very hard to digest, Bionic Turtle was helpful to break down difficult quant concepts and put into Excel spreadsheet. It turn difficult quant concepts into more manageable and tangible material that you can see and “touch”. The FRM handbook already warned by GARP or some exam prep providers that it cannot be used a core study material but it is a great accessory. I managed to finished the whole 3rd edition. Schweser should give you enough questions for practice and its mock exams also very useful. Before CFA level III last year, I dedicated 85% of the time on CFA and afterwards I use evening after work and weekend to study.