FRM Question regarding readings

[David Harper CFA FRM]

Hi Lee, If you open and look you can probably see they are practice question sets. I write a new question each workday (http://forum.bionicturtle.com/forums/todays-quiz.53/), which is not convenient to customers (but allows for discussion). Then, for paid members, after a batch is reached (e.g., a chapter or two), Suzanne collects them into the PDFs. In this way, we are always adding new questions.

Re: Are they comprehensive enough to cover the original readings?
All I can say is that I am confident that, by all accounts, they go deeper vis à vis the AIMs, than anyone else, including GARP. They are often a notch or two more difficult than the exam (although I take care to avoid technicalities or tricks or marginal nuances), to really stress an understanding. Thanks

 

[MLee]

Thanks for replying Dave. I want to know if we need to compute the minimum variance portfolio (page 28 of the topic 1 book), because there are people saying that it will not be on the test.

So, do we need to memorize it?

thanks

 

[MLee]

and also, what does the inclusion of riskless rate play a role in the portfolio curve? just a confused when u added it there. thanks

 

[MLee]

what i mean above is that , on page 30, there was just the equation, but no explanation or annotation as of the standard deviation of c

 

[David Harper CFA FRM]

Hi MLee,

I agree with those people: probably, the 2-asset globabl minimum portfolio calculation will not be asked. I personally would not consume time trying to memorize it.
(however, deriving it, a local minimum is an instructive exercise). So, answer: no.

imperfect correlation among risk assets creates the curvy minimum variance portfolio curve. Before any riskfree asset, the upper segment is the efficient frontier.
After the addition of the riskless rate, the straight CML running from the riskfree rate to tangency at Market Portfolio becomes efficient and, under the theory, all efficient portfolios are mixtures of the (i) riskfree asset and (ii) the same Market portfolio. So, the riskfree asset, assuming it can be lended and borrowed, allows for an every more efficient "efficient frontier."

Thanks, David

 

[MLee]

Will topic 2 for Part 1 be released today, according to the schedule?

 

[David Harper CFA FRM]

It will publish tomorrow (T5 today and 2 PQ PDFs). Please feel free to not constantly check in, with the same question over and over. I know what the schedule says, I wrote it.

 

[johnparker16]

I just tested the schedule which published and I discovered that Element I and II paperwork will be mainly published in Feb however Element I and II video clips will be published throughout Goal. Isn't it possible to launch Videos + Notices Element I in Feb and Videos + Notices Element II in March?

 

[David Harper CFA FRM]

Hi John,

No, it's not possible, this is the schedule.

It's already extremely demanding to meet this schedule ... if we could just "move up" resources, we would do that, but we spend time to create fresh materials and refresh the old materials, while giving support, so it's actually like a sprint for us with no breaks. Thanks,