bodie chapter 24

Discussion in 'P2.T8. Investment Management (15%)' started by rickm123, Apr 26, 2012.

  1. rickm123

    rickm123 Member

    Hi David:

    The Bodie chapter has a lot of describes in the learning outcomes. But the practice questions are very quantitative drive. Wanted to get your opinion about how deep of a dive is necessary quant wise.
    I realise that the math explains the concept but do you think we will get tested on it


  2. David Harper CFA FRM

    David Harper CFA FRM David Harper CFA FRM (test)

    Hi Rick, the Bodie chapter is new 2012, so I don't really know (P2 is hard to predict even for seasoned readings...), so take this with a grain of salt (or similar consumption commodity with low convenience yield):
    • Bodie feels pretty ripe for testing, I would not be surprised to see them draw from Bodie chapter given the relative paucity of other T8 sources for quant questions. If it were me, i would study Bodie carefully and with a quantitative understanding.
    • He's also got a fair amount that "bookends" P1. RAPMs, so it's right up GARP's power alley
    • The quant actually isn't deep, as quant goes: all of it is easily within typical FRM reach
    • Plus, can you understand M^2 without some math? I may be biased, but the qualitative description of M^2 baffled me ... then i see the math: add cash to the portfolio so volatility matches benchmark, then take the active return. A little math and it's suddenly clear (IMO). So, i don't really know, but I do think it's worth practicing the math in Bodie. I *think* its much more testable (accessible) than, say, T8. Grinold or T8.Lo (I actually think, ironically, Lo is true quant that you CAN relegate to qualitative review, but i would not treat bodie "superficially")
  3. rickm123

    rickm123 Member

    Thanks David
    Also is the spread sheet 8c 1 available yet?

    Also on another note the CVA spreadsheet?
  4. David Harper CFA FRM

    David Harper CFA FRM David Harper CFA FRM (test)

    Rick, not yet, when the revised XLS are available they will appear in the Study Planner. Otherwise, you don't need to query status (I don't attach dates in the calendar so that I have time to revise them). Thanks, David

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