2013.P1.Foundations
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dacronje 02 Feb 2013
Where is the tutorials that we have to view (prior to using these notes?)?
Thanks
Suzanne Evans 02 Feb 2013
The video tutorials will be published according to the following calendar: http://www.bionicturtle.com/forum/threads/2013-frm-calendar.6642/
Thanks,
Suzanne
joehar04 02 Feb 2013
When do the updated practice questions come out relating to the notes for 2013? I did not see that on the calendar.
David Harper, CFA, FRM, CIPM 02 Feb 2013
@joe - they release throughout the year. I write a set of 3 each Mon-Thur, then when we finish a reading/section, we publish that PDF; e.g., Feb 11th is the first P1 Practice Question PDF for Topic 1; then the following week is the first new P2; and so it goes throughout the year… thanks,
Goatie 03 Feb 2013
Where can I find a clearer explanation of the sample problem in CAPM to calculate the expected return on as asset? Elton question 1 chapter 3
bball8530 05 Feb 2013
Hi David,
I noticed that Stultz Chapter 3, Creating Value with Risk Management is not included in this updated study guide for the May exam. Did FRM remove this topic? So should we not be focusing on the specific problems about creating value in risk management (i.e. handling bankruptcy costs,moving income across time and tax brackets, reducing debt overhang…etc)
Thanks!
David Harper, CFA, FRM, CIPM 05 Feb 2013
Hi bball - It’s a good point. Yes, they did remove Stulz 3 (actually T1 used to include Stulz Chapters 2 and 3; they caused a lot of confusion, not because the concepts are not important but because the text is very hard to read. Then last year they dropped Chap 2 but not Chap 3, which was almost further confusing because 3 builds on 2.). Technically, you do not need to focus on these topics ... for a first study pass, I would stick only to the AIMs ...
Although, as soon as I can revise these T1 notes (e.g., there is already a found typos on page 31) , I planning to add an APPENDIX with both Jorion Chapter 1 and Summary of Stulz Chapters 2 & 3 (just to convey the concepts), which is to say that I sort of agree with your implication: those concepts are still foundational to the FRM (Jorion Chap 1 more than Stulz 2 & 3, but still Stulz), so while it should not be necessary, it would still be helpful to be aware of the conditions under which friction-full (i.e., perfect condition violations) permit value creation by risk management.
In summary, I do think FRM Topic 1 lost some “risk introduction” when it dropped both Jorion and Stulz. (The IFC paper, which i’ve now thoroughly covered with quiz questions, clearly does not compensate with the detail; e.g., its analog to Stulz 3 does not nearly explain when/why hedging adds value).
I hope that is helpful, David
frm2013w 05 Feb 2013
Hi David, for P1 T1 notes, b/t p10 and p11, the formula used in example cash flow conversion to equivalent, it seems it’s using risk free rate on top, and WACC on bottom, where as in the general formula stated on p11, it shows reversed, risk free on bottom and WACC on top.
I’m just wondering which should it be? Thanks.
David Harper, CFA, FRM, CIPM 05 Feb 2013
Hi Nina, Yes, my general formula on p 11 is incorrect (apologies, we will reissue this PDF soon with two corrections). The spreadsheet example correct. Which is to say, correct is: CE[CF(n)] = E[CF(n)] * [1+rf]^n / [1+r(WACC)]^n. The riskfree rate needs to be in the numerator:it is the lower number, and the certainty-equivalent needs to be lower so the multiplier needs to be less than 1.0. Thanks for asking, we will fix,
noalv4 08 Feb 2013
Hello,
I just signed to your program and doenloaded p1.t1.
I understood that every day there are practice queations which are dowloaded to pdf after a week.
I couldn’t find the daily queations or the weekly pdf. van you direct me to finding them?
Also, are the questions that are in study notes relevant for the comming exam?
Thanks,
Noa
Suzanne Evans 10 Feb 2013
Hi Noa,
There are practice questions written daily (Monday-Thursday) by David here: https://www.bionicturtle.com/forum/forums/todays-quiz.53/
The pdfs are not done on a weekly basis. The pdf’s are done after a set of practice questions has been completed within a topic. I do believe that there are now 1 or 2 sets that have been completed that will be compiled and published this week.
The practice questions that get published will be in the study planner: https://www.bionicturtle.com/my-account/study-planner
Questions within the study notes are relevant.
Thanks,
Suzanne
ebony 11 Feb 2013
Hi David, for Part 1 T1 notes Allen, chapter 4 Financial disasters I noticed Union Bank of Switzerland (UBS) was omitted from your notes…
Thanks
David Harper, CFA, FRM, CIPM 11 Feb 2013
Hi ebony - Oops, you are right; it wasn’t in the otherwise identical AIMs from last year, but was added. We will include in the revision (which contains two other fixes + appendix) that will appear ASAP. Thank you for noticing the omission!
crisuk 15 Feb 2013
Hi David, just joined Yesterday and I was wondering whether you provide guidance on the preparation for the exam in term of what to start first i.e. Notes or video or etc. I know that there are different ways to tackle the preparation for the FRM but I will be grateful if you could give me some direction please, Thanks a lot
thanala 15 Feb 2013
Hi David,
Will you be uploading P1 T1 and P1 T2 today?
David Harper, CFA, FRM, CIPM 15 Feb 2013
thanala - this weekend, honestly we are working furiously, checking status only distracts us from the content, thanks for understanding, but please you don’t need to check status: all dates are merely target dates. thanks,
donny p 17 Feb 2013
Hi David
Do you recommend complimenting other reading materials with the study material you provide and if so what would you recommend or does the material you provide sufficient for the exam preparation.
Thanks
Suzanne Evans 17 Feb 2013
Hi Donny,
This has been asked in the forum previously on numerous occassions. Please see here: http://www.bionicturtle.com/forum http.s://www.bionicturtle.com/forum/forums/about-frm.2/
Thanks,
Suzanne
maoxindi 25 Feb 2013
I bought FRM Part II Tier 3 last year.
I was supposed to take Dec 2012 exam, but I postponed the exam to May 2013 due to my schedule conflict. I did not use turtle product I purchased. Your website is saying the product is available to use for 1 year after it’s purchased. I am wondering why I could only see sample study notes on the website now.
Hope to hear from you soon. Thank you.
Suzanne Evans 25 Feb 2013
Maoxindi,
You should still be able to access the Part 2 contents. According to our records you purchased your product on August 26, 2012. You should have access through approximately August 26, 2013. Please make sure that you are trying to access Topics 5-9 and not Topics 1-4. If you are trying to open Topics 1 thru 4 you will receive the samples because you purchased Part 2 not Part 1.
If you have any further difficulties, please email me at .(JavaScript must be enabled to view this email address).
Thanks,
Suzanne
ase2012 01 Mar 2013
Hi David
Thanks a lot for all the hard work that you guys do in supporting our FRM studies. Can you please tell us when you will reissue the revised P1 T1 PDF,with the corrections for issues identified earlier?
Assefa
David Harper, CFA, FRM, CIPM 01 Mar 2013
Hi Assefa - I just finished the (exhausting) T6 notes, so I plan to start this revision this weekend, so it should not be too long, thanks,
crisuk 02 Mar 2013
Hi David,
AIM 3.1: Understand the derivation and components of the CAPM.
I have reviewed how we derived the equation of the CAPM however I was wondering what type of questions and aspects we should expect to be tested on this AIM. Additionally if you have already address this topic on your question bank can you please indicate me where to find it. Thanks a lot
David Harper, CFA, FRM, CIPM 04 Mar 2013
FYI, Suzanne and have updated this T1 Foundations Study Note: it includes the corrections cited above and an Appendix. It is the same, original PDF link, if you download, you’ll simply get the new one, we hope you like it! Thanks,
@crisuk: I am going to copy your question to the T1 forum and answer it when i can, thanks,
edwardmen1 05 Mar 2013
David and Suzanne
This is the 1st time I purchased your product. I have done the P1 Notes and I have many questions. Then I noticed that you recommend viewing the video tutorial prior to the notes. Yet those videos has not released. So can you recommend me a way to use the product? (aka. what material comes first?)
I just get confused about the steps a little bit..
Thanks
David Harper, CFA, FRM, CIPM 05 Mar 2013
Hi Edward - welcome! We don’t necessarily prescribe an order, especially at the beginning of the year when we are just trying to catch up with the new AIMs. The 2013 videos sequence has not started yet (updating the content takes time ...), but the Study Planner retains the previous year’s videos (which are often highly relevant, so you can view those or wait for the new ones. Several customers do start with the older videos.)
You can ask questions on the forum at http://www.bionicturtle.com/forum (but it’s “best effort” on my part as I can’t answer all of the questions myself, especially while finishing the 2013 notes and recording the new videos). Thanks,
anshu.dutta 14 Mar 2013
Hi David,
Where is the video tutorial for this topic? Also, the calendar in the study planner refer to all pds. Are there no videos uploaded? Also, do you recommend studying the pds first and then watching the videos?
Regards,
Anshu Dutta
David Harper, CFA, FRM, CIPM 14 Mar 2013
Hi Anshu,
I am currently recording 2013 T1 videos, their target per the calendar is Saturday the 16th (+ 2 days) which is actually when they will upload (they will “hit their target”). We are behind on the Study Note PDFs T7 - T9 due to the late release by GARP, and difficulty of T6.
Re: the order: I don’t really recommend an order. We are currently redesigning the site to include a much more friendly Study Planner-as-TOC, and it will reflect the philosophy of organization according to the sequence of the assigned readings, but random access w.r.t to resource type (video, note, etc). I don’t believe I can decide the sub-sequence (video—> note) b/c individuals vary (e.g., experts can use only XLS; intermediate do not need videos; etc). Thanks,
mga 17 Mar 2013
Hello,
Maybe I missed it, but there is no APT topic in the notes above. Is APT not included in the exam anymore?
Regards
Mustafa
David Harper, CFA, FRM, CIPM 17 Mar 2013
Hi Mustafa - APT is out of P1 in 2013 (still in P2.T8). We’d been arguing to either eliminate or double-down APT in P1, since it never *really* got tested, so I think it’s very possible it could come back next year/later with better assignments. Thanks,
Amit24 21 Mar 2013
Hi David
its very confusing , So is there no structure on how to study here ? I do see lot of information but no index or topics clearly labelled . Am i missing something ?
David Harper, CFA, FRM, CIPM 21 Mar 2013
Hi Amit,
You want to work from the Study Planner @
http://www.bionicturtle.com/my-account/study-planner?sort=topic
This sorts by Topic (1-4) and within topic, by resource (e.g., videos, practice questions).
Thanks,
anshu.dutta 30 Mar 2013
Hi David,
I do not see the topic - Arbitrage pricing Model in your notes. Is it omitted or am I missing something?
regards,
Anshu Dutta
anshu.dutta 03 Apr 2013
Hi David,
Can you please clarify about APT. You don’t have it in your notes but you have included in the question bank. GARP has removed the topic. How important is - from an exam point of view - to study this?
David Harper, CFA, FRM, CIPM 03 Apr 2013
Hi Anshu,
Please see http://www.bionicturtle.com/forum/threads/apt.6708/#post-22677
(apologies for delay responding, but honestly i am easier to reach in the forum, and in my cases, a question has been previously asked. So, in this case, if you go to forum and quickly search “APT” you’ll find, among others, the recent thread I just linked to). Thanks, David