# Tips for remembering key Foundation concepts

Discussion in 'P1.T1. Foundations of Risk (20%)' started by spidercat, Apr 30, 2012.

1. ### spidercatNew Member

Hi,

Thought it may be interesting to share the variety of methods we use to remember the key concepts relating to the Foundations of Risk Management module.

May not work for everyone but I like visuals...

See for example my Sharpe ratio visual - Save Every Violin (Sharpe = Excess return/Volatility)
or Treynor - Tray Every Breakfast (Beta)

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2. ### spidercatNew Member

Sorry for the massive photos! Larger than life they are...

3. ### David Harper CFA FRMDavid Harper CFA FRM (test)Staff Member

spidercat: a talking violin and breakfast on a tray? I love love love it, it will be hard to NOT remember these images

4. ### Aleksander HansenWell-Known Member

That's what I call creative flash cards!

David, one thing which would be useful (for me at least) would be to take the formula sheet (not sure if you're compiling one for May 2012) and save each formula with accompanying brief explanation as an image for example.
Then one can just save that to a folder and use it as a screen saver (or flash-cards)
I have 6 monitors at work so at any one time two or more are inactive so it would start displaying the formulas. Partially staring at that all day long is bound to make one remember.

5. ### Hend AbueneinActive Member

Very nice Spidercat!

I used alphabetical tricks to memorize those.

It's always the same numerator (Rp-Rf), only denominator differs.
For Sharpe ratio: denominator is Sigma. Sharpe and Sigma start with an S.
For Treynor's : denominator is Beta. Treynor and Beta have Ts, Sharpe doesn't.

Not as creative, but it did the trick

Good luck

6. ### Aleksander HansenWell-Known Member

...just if you find yourself with nothing to do a few weeks before the exam, I mean

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7. ### AditiNew Member

@spidercat- thats one cool mnemonic aid. I made cue cards to turn n memorize but this is way easier and fun. Thanks for sharing

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