Extra reading from FRM core reading?

[panasonic_chai]

HI,

I just bought the FRM core reading 2009 and use it together with the GARP AIMS. However, i realised that there are excessive readings and topics in the particular chapter that is not required by the GARP AIMS.

Since it is not mentioned inside AIMS, is it safe to skip those extra sub-topics? I also find this year reading is way more than previous years. Can someone here advise? Thanks!

 

[David Harper CFA FRM]

Hi,

Last year, GARP tested on some questions that were in the readings but not explicitly AIMs. (I dubbed this "tracking error" and consisting of two parts: 1. AIMs that do not get tested, and 2. questions asked that do not have AIMs). So, this year, their language reflects a less rigorous "committment" to the AIMs per se in favor of the readings and the broad topic lists (e.g., "for the FRM examination. They [AIMs] should be used as guidance and support for the readings outlined in the Study Guide to help identify key learning objectives for each core reading."). In other words, they are not promising to test 1:1 correspond against the AIMs.

Therefore, strictly speaking, time permitting, best is to consume the whole reading. But time will not permit, generally, for most, and I would view studying the AIMs as a good practical strategy. The issue with the Full Exam, as a one-time event without precedent against so much material, IMO is simply: if the exam is 140-50 questions, the full candidate will necessarily prepare for many topics that will not be tested (there are multiples of this quantity, in number of topics). This is frankly my primary concern, if you look at the quantity of assignments against the exam length, over-preparation is implied.

Hope that helps, David

 

[panasonic_chai]

Hi David,

Thank you for your advice.. I think i know what to do now. and yes, im registered for the full exam.

 

[narayananvenkat]

David..

Between Level I and Full exam , given the volume of content, time ( and if course our small brain) as you said full exam is the biggest challenge. But many of my friends feel that but for vastness full exam distribution spreads across a wider span that you stand to gain compared to levels wherein the rigour of testing is more intense and probablity of pass is slightly less. This is not to unermine full and only an expression of probablity of success. I dont know . But with a positive mind I am trying my best to face full (even though I recall your "sanity' comment.).
Please comment

 

[David Harper CFA FRM]

Hi venkat,

Oh, that is a really interesting perspective i had not considered. I agree in the sense that: since GARP will never again test the expanded full exam (it is a one-time event, because this exam is bigger than last year), I would *guess* they cannot grade on a harsh curve. So, to agree with this perspetive, I would guess the curve will error on the favorable side.

However, two caveats:
1. I don't know what "shallow mode" looks like for many of the topics; e.g., interest rate swaps. I am not sure i see how you can study these any less for the full exam
2. If this strategy self-permits people to delay studies, it is risky. I think the full exam this year amplifies the standard bias in favor of those who start preparation early (and with regularity).

so while i do tend to agree with the perspective you've shared, I think it is more helpful to those who are williing to leave a bit to chance. When I took my exams (CFA, FRM) the cost and time was so significant that I wanted to prepare with a good chance of passing. (with confidence). Now, preparing "with confidence" for FRM is always difficult, but for those candidates, the implied time burden (I think) is very large. And, unfortunately, there will still be randomness: they will prepare broadly but only get quizzed on a subset...

David

 

[narayananvenkat]

David..

Thanks for the reply.

Even thinking of full exam definitely presupposes continous hard work and not late start of preperation. I agree with your view. My point earlier was that the depth of questions and in that light our coverage and preperation do we stand to gain (of course, GARP is in its unoque experiment). in Full exam. THis is not to shrt cut the preperation but to tactfully plan the time and study which is where David gives us a helping hand thro cram practice webinar etc.,

Thanks for guidance.

venkat