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r.mahagaonkar

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Would like to understand on how to start with FRM 2, what subject do I take first to start with and sequence my study as I have got only 4 months for prep. Thank you in advance
 

LucreziaB

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I also took the exams back to back and yeah I did find it stressful but absolutely doable as I did very well on Part 2. I think this year Part 2 is in December for some reason if I remember correctly so you might have an extra month. Anyway...

This exam is so qualitative and unfortunately does require you to memorize obscure stuff (to a much greater degree than Part 1) so the GARP books are a must read in my opinion. BT notes are notes and meant to help you understand the concepts not cover every obscure point.

So my strategy was to start with BT notes and videos for the entire curriculum, study them well first, make flashcards and do practice problems (maybe half at one time and save half for later), etc. Then, before too much time had passed, read all the GARP stuff cover to cover at least once. Then a second pass through the material, roughly a few chapters a day (depends on the content and if on a weekend or weekday) where I’d review the GARP text and the BT notes and do practice problems.

Do your flashcards every day, after a few weeks, you can start removing flashcards you got right from the pile to whittle it down, though you may want to reintroduce them toward the end so you don’t forget. Time permitting, write out cross topic study guides so you can synthesize topics that come up in multiple contexts (eg liquidity transformation)

The last few weeks, I did a third pass through stuff I thought was either foundational or stuff I did less well on BT questions. And then did BT chapter quizzes and one of the exams. I would have done the other one but I ran out of time. I don’t regret not doing the GARP practice exam as I had heard from others it was nothing like the Part 2 exam (in contrast to Part 1 where I had heard it was more comparable).

This is perhaps more prep than is needed but I work with people across basically all areas of risk management so the material is highly relevant to my work. I am in tech and don’t have a finance background and was taking time off work to prepare so I figured I’d go all out and let this be my chance to really master this stuff. Also wanted to make sure I passed on the first try because it was not fun dealing with all the bureaucratic issues of the past year and I couldn’t even imagine having to go through it all again...
 

Meta

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Thank you for your feedback, how is the workload compared to the part 1 exam?
As I have spent around 6 months for part 1, i guess that 3 months won't be enough for part 2...?

The quant part has killed me...
 

LucreziaB

Member
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Thank you for your feedback, how is the workload compared to the part 1 exam?
As I have spent around 6 months for part 1, i guess that 3 months won't be enough for part 2...?

The quant part has killed me...
It is a LOT more reading and memorizing qualitative facts (1200+ pages of reading) but there’s a fair amount of quantitative material too and I think the best way to understand a lot of qualitative stuff is to get the underlying quant part. I think coming fresh off of Part 1 is the best time to do it and if you did well in Part 1 you will really feel it paying off because several topics (particularly Market Risk and Investments) build off of and even repeat a lot of P1. Sections 3 and 4 of P1 are the most relevant to P2 though you do want to be rock solid on the normal distribution.

Personally I found Part 1 took more effort because I had never even done a simple discounting of cash flows to price a simple fixed rate non-callable bond before I started. I pretty much did nothing in my life besides work and study for 3.5 months leading up to Part 2 but I passed extremely comfortably probably because I had set the foundations in P1

As Part 2 is actually early December this year so if you start now and pick the latest date you have 4.5 months to study, I would say it’s very feasible as long as you can plan to spend significant time (a few hours on weekdays and a good portion of your weekend) studying.
 

Mezzala95

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Hi all,

Wanted to get some input on how some of you are (or have in the past) studying/revising to prepare for the P1 exam.

I go through the instructional video and study notes for each topic, spending a fair amount of time on these (~3-5 hrs on average). After that I do the chapter practice question set which takes me another 3-4 hours, noting I'm able to do the questions without much trouble. If I do have trouble, it doesn't take me long to understand a solution given the time I would have spent on the study itself.

A problem I'm facing is that the BT questions are too time consuming for me to use as revision to keep concepts fresh. Especially if its a more quantitative question.

For example, the IR futures topic, calculating the quoted futures price given a clean spot price took me about 15 minutes to work through the first time, granted I got that right.

So the purpose of this thread; how are you all structuring your revision using the BT resources?
 

lushukai

Active Member
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Hi @Mezzala95 ,

For me, I went through all the BT videos (and read through the BT notes for clarification on things I didn't understand; but mostly did not look at them much). I spent more time on questions, reading/understanding/participating on the forum. When it came close to the exam, I redid the 4 topic practice questions sets (the question set that covered all the chapters of a topic) again. I also spent time doing the GARP and BT exams.

Hope this is helpful!
 

Mezzala95

New Member
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@lushukai helpful as always mate!

I definitely feel like I need to spend more time on questions, with BT's questions really testing you across both depth and scope.

I just discovered this Airtable containing all of BT's questions (browsed through the forums and came across it).


I think this might help me get targeted practice for specific LOs and topics. Sometimes, especially with the QA topic - BT question sets tend to incorporate a few concepts which, whilst providing a one-of-a-kind question for understanding and development, simply takes too long to work through!

I've yet to try the 'interactive quizzes' too which I believe should replicate the exam-style questions (shorter, but difficult). Though these test you on the whole topic as opposed to just a certain chapter.
 
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