How is it possible to remember so many formulas in FRM?

[maisatomai]

For example, the formula for VAR and ES using POT. I wonder how many people can remember it for exam. But the AIM requires us to remember which is quite unreasonable.

David, in your opinion, do we need to remember it for exam? I was wondering whether the AIM was part of the original book by Dowd. The students would easily do it with open book. As for AIM exam, GARP will not be so cruel to make us remember? Is there any past year questions which require us to remember the formula in order to solve?

 

[David Harper CFA FRM]

Hi Maisatomai,

Would you believe the situation has improved markedly from three years ago? I personally have managed to soften many AIMs from "calculate" to "describe" or "explain" ... however, you are correct: there remain several "calculate" AIMs with low (or very low) testability.

The Dowd EVT previously has contained more calculates, and has been reduced to only "Compute VaR and expected shortfall using the POT approach, given various parameter values."
i.e., the remainder of Dowd Chapter 7 is qualitative explain/describe

Do I think you will be asked to calculate ES & VaR under POT? I would guess no, I would figure like a 10% or less chance ... I agree it borders on "cruel" ... but i do know that I pushed to soften that chapter and GARP has, yet they retained the "calculate" ....

We will be releasing formula sheets later in the year, after mock exams, to help with this...thanks,

 

[Hend Abuenein]

Thanks David.