Course Errors Found in 2021/2022 Study Materials P2.T9. Investment Management

Nicole Seaman

Director of FRM Operations
Staff member
Subscriber
Please use this new thread to let David and I know about any errors, missing/broken links, etc. that you find in the 2021/2022 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. This thread is for any other materials (notes, spreadsheets, videos, etc.) where you might find errors.

Information needed for us to correct errors:

  • Reading
  • Page number
  • Error
 
Last edited:

Rblc

Member
Hello I think there is an error on the reading Page 10 of the study note on Bodie's Performance evaluation.
The 3% here should be the sample estimate of non-systemic risk and not the standard error?
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RSchwarzer

New Member
Subscriber
Hi all,
I am not sure if that is a mistake. In the study notes of Ang´s Chapter 7 "Factors" on page 28 the Farma-French HML factor is explained.

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I am confused about the details given on Value and growth stocks there. I expected the correct phrase would be something like this:

"The variable generally captures the strategy of either buying stocks when prices are low (as measured by a high book-to-market value) or when prices are high (as measured by a low book-to-market value)."

Value stocks have a high book-to-market ratio and therefore are "undervalued", their price are relatively low. Growth stocks have a low book-to-market value and therefore are "overvalued", their price are relatively high.

Best
Roland
 
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