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FAQ Before Exam Appendix Sections - Optional

DShim27

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I have a question on Chapter 5 for the 2020 Part I Exam.

The Chapter 5 Question Set has an appendix starting on page 25. Do we have to study these for the exam? I don't recall these topics in the GARP textbook. Basically anything after page 25 of the question set?

- Elton & Gruber Chapter 5: Delineating Efficient Portfolios
- Elton & Gruber Chapter 14: Nonstandard Forms of Capital Asset Pricing Models
 

David Harper CFA FRM

David Harper CFA FRM
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Hi @DShim27 No, doesn't it have a label? (@Nicole Seaman we should check the labeling, I thought our Appendices usually have a red warning label, so to speak, to the effect that "the following are not necessary")

Appendices are included as extra, optional practice and, by definition, tend to be highly related because, at a minimum, they were previously assigned in the syllabus. So: optional, for sure. But rarely a waste of time if you want go deeper on a topic. Thanks,
 

DShim27

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I didn't see a red label unless I'm missing it. I'll do a quick review of anything after page 25. Thank you!
 

DShim27

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I didn't see anything. It would be very helpful to know which sections are "optional" to study. Thank you!
 

Nicole Seaman

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#8
@DShim27 @David Harper CFA FRM

I will go through to make sure the Appendix is marked with red so it is very clear that it is optional. I thought that it was made clear on the documents that anything in the Appendix was previously in the curriculum and was removed, but I will make sure that the word OPTIONAL is in bold red for further clarification.
 

David Harper CFA FRM

David Harper CFA FRM
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#9
@Nicole Seaman Here is potential text we could use to preface the Appendix (this might be too long, but explains why our relegated Appendix PQs are optional but not time-wasting):
"This Appendix contains Practice Questions that were written for an earlier iteration of the FRM syllabus. As such, they are decidedly optional and not necessary to your current preparation. They are included merely as a supplemental resource in case you want to give additional practice to this topic. Why might previous questions remain relevant? Because, in general, the FRM exam has a loose rather than tight linkage to Learning Objectives (LOs); this has been argued as both a strength (i.e., less opportunity to "game" the exam via rote memorization) or a weakness (i.e., less clarity on exactly what will be asked on exam day) of the exam. GARP's approach is not necessarily identical to other certification exams whose LOs might be a specific map to the actual questions. As the 2020 Learning Objectives document itself advises, "The FRM is a comprehensive exam and you are expected to be familiar with a broad range of risk management concepts and techniques. Key concepts appear in the Study Guide as bullet points at the beginning of each section to help you identify the major themes and knowledge domains associated with the readings listed under each section." Notice how the emphasis is on the broad range of concepts and the broad knowledge points; in fact they are called "broad knowledge points." For this reason, engaging with Practice Questions that we have relegated to the Appendix is certainly optional, but at the same time is unlikely to be a waste of time if you want to drill down further on a particular topic."
 
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