Formula Sheet
- Thread starter mkparis
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mkparis - they will all be posted by the end of this coming week (by end of Friday). Thanks, David
i saw the upload by you, dave. it looks like the formula sheet is not much of a 'sheet', but closer to a stack!
going thru the screencasts, we kinda have a feel on what is not highly testable. so how should we swallow the stack down efficiently? yeah, we have to somehow, but any tots of how we can make this task slightly easier?
going thru the screencasts, we kinda have a feel on what is not highly testable. so how should we swallow the stack down efficiently? yeah, we have to somehow, but any tots of how we can make this task slightly easier?
Hi Wing,
I have two thoughts:
1. I am currently preparing the cram session(s). Those will lead with the thematic formulas (e.g., cost of carry, black Scholes, multifactor model) that i think constitute the "formulaic essence" and cover the most territory.
2. To be honest, I prepared the formula summary "stack" (at 79 pages, okay, it's a stack!) b/c a few requested. I'm not sure i would have otherwise. But I can't imagine it could be directly consumed; nobody can learn the cirriculum from the formula summary. I might scan it to identify areas of weakness (e.g., "what's this formula, i don't recognize it, maybe i should look at this section again"). But it should mostly remind you of the familiar.
I am not keen on formula memorization: the FRM seems to punish this approach. Yes, you need to know quite a few formulas but that is not enough. To give an extreme example, if somebody had every single formula memorized perfectly but without concepts, context and logic, I think they would fail. I even sort of believe (just my opinion) that memorizing formulas *might* be a sort of distraction if it comes at the expense of the context and concepts.
The irony of the cirriculum is that, while it seems predominantly quantitative, there are a only handful of math ideas at work (don't take my word, see Wilmott Appendix A) and the rest is the application of these few math ideas to various instruments, approaches, etc.
The Hull chapters are a good example. Approaching Hull from the angle of his formulas could, I imagine, be difficult and even overwhelming. But Hull is reusing the same math over and over; most of Hull's math is reused basic building blocks. Interest rate swaps and CDS valuation use the same building blocks (they both discount future probability-weighted-average cash flows). Owning the logic of his process is easier and far more robust that trying to memorize his formulas
David
I have two thoughts:
1. I am currently preparing the cram session(s). Those will lead with the thematic formulas (e.g., cost of carry, black Scholes, multifactor model) that i think constitute the "formulaic essence" and cover the most territory.
2. To be honest, I prepared the formula summary "stack" (at 79 pages, okay, it's a stack!) b/c a few requested. I'm not sure i would have otherwise. But I can't imagine it could be directly consumed; nobody can learn the cirriculum from the formula summary. I might scan it to identify areas of weakness (e.g., "what's this formula, i don't recognize it, maybe i should look at this section again"). But it should mostly remind you of the familiar.
I am not keen on formula memorization: the FRM seems to punish this approach. Yes, you need to know quite a few formulas but that is not enough. To give an extreme example, if somebody had every single formula memorized perfectly but without concepts, context and logic, I think they would fail. I even sort of believe (just my opinion) that memorizing formulas *might* be a sort of distraction if it comes at the expense of the context and concepts.
The irony of the cirriculum is that, while it seems predominantly quantitative, there are a only handful of math ideas at work (don't take my word, see Wilmott Appendix A) and the rest is the application of these few math ideas to various instruments, approaches, etc.
The Hull chapters are a good example. Approaching Hull from the angle of his formulas could, I imagine, be difficult and even overwhelming. But Hull is reusing the same math over and over; most of Hull's math is reused basic building blocks. Interest rate swaps and CDS valuation use the same building blocks (they both discount future probability-weighted-average cash flows). Owning the logic of his process is easier and far more robust that trying to memorize his formulas
David
http://www.bionicturtle.com/learn/article/formula_summaries/
and the pdf is here :
http://www.bionicturtle.com/_notes/2008 FRM Formulas.pdf
and the pdf is here :
http://www.bionicturtle.com/_notes/2008 FRM Formulas.pdf
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