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# Errors Found in Study Materials P2.T9. Investment Management

#### Nicole Seaman

Staff member
Subscriber
Please use this thread to let David and I know about any errors, missing/broken links, etc. that you find in the materials that are published in the study planner under P2.T9. Investment Management. This will keep our forum much more organized. We appreciate your cooperation!

PLEASE NOTE: Our Practice Question sets already have links to their specific forum threads where you can post about any errors that you find. The new forum threads are for any other materials (notes, spreadsheets, videos,etc.) where you might find errors.

Information needed for us to correct errors:

• Page number
• Error

Last edited:

#### mithunchakravarthy

##### New Member
Hi,
Page Number : 4
Error:
I notice the below formula mentioned "j<1", I believe it should be "j<i".

Regards
Mithun.

Last edited by a moderator:

#### Kaiser

##### Member
Hi,

R70.P2.T8 Grinold page 9 of the slides

Mathematically, given the that r_pa= theta_p + beta_p x r_b (3rd equation in the image below), it seems that the first equation in the screenshot below is incorrect.

The first equation says:

theta_p = r_p - beta_p x r_b

but reckon it should be:

theta_p = r_pa - beta_p x r_b (which is a basic reorganization of the 3rd equation in the image below)

Rgds,

#### David Harper CFA FRM

##### David Harper CFA FRM
Staff member
Subscriber
Hi @Kaiser Yes, you are correct, there is a mistake: for the third equation (ie, active return and active risk), Grinold actually gives (emphasis mine):

r(PA) = r(p) - r(b) = Θ(p) + β(PA) + r(b) per Grinold equation 4.19

#### Kaiser

##### Member
Hi,

R71.P2.T8 Jorion, Study Notes page 13, the calculation seems incorrect.

should give us

and x =

In all cases, shows a dimensional problem as number x matrix = matrix (not number).

Rgds,

#### David Harper CFA FRM

##### David Harper CFA FRM
Staff member
Subscriber
Hi @Kaiser Yes, you look to be correct. Apologies! Question: what tool are you using for matrix calculation? Thanks,

#### Kaiser

##### Member
Hi,

Minor typo in the slides R73.P2.T8 Bodie, page 21,

R_M vs R_m (R_M is used across the entire document and this is the only occurrence of R_m)

Rgds,

#### Kaiser

##### Member
Hi,

Minor typo, R76.P2.T8, Mirabile page 7.

"... as little as $750" (vs S750) Rgds, #### Part 2 Student ##### New Member David / Nicole, Reading: Andrew Ang, Chapter 6 Page: 11 Error: In the paragraph beginning with "2. Behavioral:", line 5, should it say "result from", instead of "result in"? To me, "barriers to the entry of capital" seems to be the cause, not effect, of "persistence of behavioral biases". Thanks. #### Part 2 Student ##### New Member @David / Nicole, Reading: Andrew Ang, Chapter 10 Page: 26 Error: In the paragraph immediately underneath Table 3, line 3, should it be "$0.34(1-0.66)", instead of "$0.37(1-0.66)"? #### Part 2 Student ##### New Member @David / Nicole, Reading: Andrew Ang, Chapter 13 Page: 33 Error: In the 2nd bullet paragraph, line 1, should it be "liquidity also dried up", instead of "illiquidity also dried up"? #### Nicole Seaman ##### Chief Admin Officer Staff member Subscriber David / Nicole, Reading: Andrew Ang, Chapter 6 Page: 11 Error: In the paragraph beginning with "2. Behavioral:", line 5, should it say "result from", instead of "result in"? To me, "barriers to the entry of capital" seems to be the cause, not effect, of "persistence of behavioral biases". Thanks. @David Harper CFA FRM can you confirm if this is an error or not. See image below from our notes: @David / Nicole, Reading: Andrew Ang, Chapter 10 Page: 26 Error: In the paragraph immediately underneath Table 3, line 3, should it be "$0.34(1-0.66)", instead of "\$0.37(1-0.66)"?
@Part 2 Student I looked this up in the source reading, and our notes reflect what is written by Ang. @David Harper CFA FRM can you confirm that this is not an error in the original source reading? Thanks!

Notes

Source

@David / Nicole,

Page: 33
Error: In the 2nd bullet paragraph, line 1, should it be "liquidity also dried up", instead of "illiquidity also dried up"?
@Part 2 Student

I also looked this up in the source reading, and our notes reflect what is written by Ang. @David Harper CFA FRM can you confirm? Thanks!

#### Part 2 Student

##### New Member
Practice Questions: Andrew Ang, Chapter 6
Page: 9
Error: In the 2nd paragraph under "Answers:", line 2, should it be "per true choice B", instead of "per truce choice B"?

#### Galaxy

##### New Member
Subscriber
Hi David/Nicole,

I was looking at p.6 of Part 2 Focus Review Investment Risk slides, and am wondering if the number "2" is missing (marked with red ink in my handwriting) from the formula right at the bottom (i.e. the second formula on the page, as below). I have also attached herewith the link to the original 57-page pdf file for your reference https://www.bionicturtle.com/FRM/2016/FocusReview/PPT/P2_FR7.pdf

Thanks a lot, Galaxy

#### Nicole Seaman

Staff member
Subscriber
Hi David/Nicole,

I was looking at p.6 of Part 2 Focus Review Investment Risk slides, and am wondering if the number "2" is missing (marked with red ink in my handwriting) from the formula right at the bottom (i.e. the second formula on the page, as below). I have also attached herewith the link to the original 57-page pdf file for your reference https://www.bionicturtle.com/FRM/2016/FocusReview/PPT/P2_FR7.pdf

View attachment 1388

Thanks a lot, Galaxy
@Galaxy Thank you for posting here. We will be updating our focus review videos in 2018, so if this is an error, we will make sure that it does not carry over to the new video
@David Harper CFA FRM Can you confirm this is an error?

#### David Harper CFA FRM

##### David Harper CFA FRM
Staff member
Subscriber
Yes @Nicole Seaman that is an error, embarrassing. @Galaxy so sorry to get such a basic formula wrong ... but your diagram notes is well done, you should teach! Thank you....

#### David Harper CFA FRM

##### David Harper CFA FRM
Staff member
Subscriber
@Galaxy no it's just special case of my general clumsiness Good luck Saturday!