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Where are Miller's EOC Q&A discussed? Do we need to know calculus for the FRM?

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Hi @David Harper CFA FRM, could you please advise where are the "End of chapter questions & Answers" (the ones starting on pg.89 of the PDF file - Miller reading notes) being discussed? As well from Q. 8 to Q.11 of these questions, we are asked to "Prove" equations. Are these types of calculus questions expected in the FRM level 1 test? Are these questions also taken from past exams?

Wondering where I can find questions derived from previous FRM mock exams in the BT study package? Are these the end of chapter questions at the end of each chapter? Or the bank of questions provided for each section?

Thanks,
Sandra
 

David Harper CFA FRM

David Harper CFA FRM
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Hi @sandrasp We don't have threads for the Miller EOC questions (we didn't write these, of course, they are included to enhance the convenience of the notes). However, it's totally fine with me if we add them as ad hoc questions arise (but we prefer an organizational method for that, i think @Nicole Seaman ? sort of like we have for Hull, maybe a tag convention?) ... RE: Are these questions also taken from past exams? No, they are just Miller's own end of chapter questions (is why they are in the study notes, not the PQ PDF that includes our own written questions).

Re: Are these types of calculus questions expected in the FRM level 1 test?

Last year I explicitly asked Bill May, SVP GARP who basically oversees the FRM, specifically about the role of calculus. Here is that email exchange (emphasis mine):
Subject: Common question asked about P1.T2. Quantitative Methods (Miller)
Hi Bill,
Does GARP have any "official guidance" on the role of calculus in the actual exam?
Especially because the Miller reading utilizes (basic) calculus, we are often asked "Do I need to know any calculus?"

fwiw, i typically explain that from a practical standpoint, time limitations preclude the tedium implied by (eg) differentiating or integrating and, further, the historical record of questions generally does not DIRECTLY query calculus, but that an understanding of basic calculus is recommended. For example, it's very helpful to understand that a distributional pdf integrates to its CDF. Thanks for any insight! Cheers, David
Bill May replied:
David,

This is a not uncommon question for us as well. Let me respond in two parts:

1)The FRM Candidate Guide describes the general quantitative level of the Exam thusly:

Q. How quantitative is the FRM Exam?

A. The FRM Exam has a quantitative component, but these quantitative concepts are presented in the context of questions that approximate real-world situations that risk managers would face. The level of mathematical rigor of the FRM Exam is consistent with an advanced undergraduate or introductory graduate level finance course at most universities.

2) Specifically regarding calculus, the FRM Exam does not explicitly require an understanding of calculus and, as a perusal of the learning objectives will indicate, does not test directly on differentiation, integration, or other aspects of calculus. That being said, an understanding of calculus, not to mention matrix manipulation that is typically associated with linear algebra, would likely prove beneficial to candidates as they prepare for the Exam. Many of tools and techniques related to probability, statistics, modelling, and estimation draw on these concepts and the better candidates understand these topics the better prepared they are likely to be.

I hope that helps.

Bill
Re: Wondering where I can find questions derived from previous FRM mock exams in the BT study package? Are these the end of chapter questions at the end of each chapter? Or the bank of questions provided for each section? @Nicole Seaman can you assist (I'm not entirely sure how to interpret this, thank you!)
 
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Nicole Seaman

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Hi @David Harper CFA FRM, could you please advise where are the "End of chapter questions & Answers" (the ones starting on pg.89 of the PDF file - Miller reading notes) being discussed? As well from Q. 8 to Q.11 of these questions, we are asked to "Prove" equations. Are these types of calculus questions expected in the FRM level 1 test? Are these questions also taken from past exams?

Wondering where I can find questions derived from previous FRM mock exams in the BT study package? Are these the end of chapter questions at the end of each chapter? Or the bank of questions provided for each section?

Thanks,
Sandra
Hello @sandrasp

Regarding: "Wondering where I can find questions derived from previous FRM mock exams in the BT study package? Are these the end of chapter questions at the end of each chapter? Or the bank of questions provided for each section?"

As David responded above, I am also not really sure what you are asking here. Our mock exams are completely separate from our practice question sets. They consist of practice questions that David has written. We organize them into a mock exam for you to go through so you can test your skills before the exam. There are forum links within the mock exam pdfs, which will bring you to the forum thread where those questions can be discussed. I hope this answers your question, but if not, can you be more specific about what you are asking?

Thank you,

Nicole
 
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