Question on study materials - Readings

[chatty06]

Hi All,

I've purchase the FRM part 1 books for 2017 as well as the schweser books, and the Bionic Turtle professional subscription.

I went through the Schweser book on Foundations of Risk Management and took all their tests. It was pretty simple and I scored high 90's. I then came to Bionic Turtle to get more questions and I took the Topic one Quiz and it was as if I had studied completely different material.

I then went back all the way to the beginning of the Bionic Turtle Study Planner and started fresh here going through each item. The questions were harder and the material was more in notes form but I still was able to make sense of it.

Once I got to "Elton, Modern Portfolio Theory , Chapter 13 section I took the question set and now I'm completely lost again. The only related study notes I have for this section is for Elton, Chapter 13. Where am I suppose to learn about the other topics that are quizzed in the Question Set?

ELTON & GRUBER, CHAPTERS 5: DELINEATING EFFICIENT PORTFOLIOS ..................... 5
ELTON & GRUBER, CH. 13: THE STANDARD CAPITAL ASSET PRICING MODEL ............12
APPENDIX: ..............................................................................................................................18
ELTON & GRUBER, CHAPTER 14: NONSTANDARD FORMS OF CAPITAL ASSET PRICING MODELS ..................................................................................................................................18
GRINOLD & KAHN, ACTIVE PORTFOLIO MANAGEMENT: A QUANTITATIVE APPROACH FOR PRODUCING SUPERIOR RETURNS & CONTROLLING RISK, CHAPTER 7: EXPECTED RETURNS AND THE ARBITRAGE PRICING THEORY.......................................30

I then start googling to find out what Elton & Gruber, Chapter 14 is and I see there is a dozen books in the FRM Study Guide under "Readings."

Am I going about this all wrong? Can't I just use the Bionic Turtle Study Planner materials to pass the test or do I actually have to purchase all 12 of these "Readings" or do I just read the GARP books?

I'm at a loss for what the correct approach is because I have read the schweser book on foundations of risk management and I have done all the activities on the Bionic Turtle Study Planner up to Elton, Modern Portfolio Theory, Chapter 13 yet when I do the questions I feel it's pulling from material that I have not yet been exposed to.

For example question 37.1 under L1.T1.37 the question ask "Portfolio Q is..."

There wasn't any additional information provided. David then provided a picture from his book of the graph that contains portfolio Q.

What book is this in?

I'm at a lost as to what I should be reading.

Any help on what I should actually be reading would help.

 

[David Harper CFA FRM]

@chatty06 Please don't let those Appendix questions overwhelm you , you can ignore them. Notice they are Appendix and we have a note that reads:

"Please note: Elton & Gruber’s Chapter 5 (“Delineating Efficient Portfolios”) was previously assigned in the FRM but removed in 2014. However, we have retained these practice questions as the concepts continue to be highly relevant. Elton & Gruber’s Chapter 14 (Nonstandard CAPM), on the other hand, we have relegated to the Appendix: it was also previously assigned but removed in 2014; however, we do not consider them highly relevant."

... the only chapter assigned (per the LO syllabus) is Chapter 13. Per the note, I decided to retain Chapter 5 because I think it remains relevant. The other two (Chapter 14 and Grinold) are questions that are "discontinued" but we relegate to the Appendix for those customers who may be interested. You wouldn't necessarily have a current reference for them. Thank you!

 

[chatty06]

@chatty06 Please don't let those Appendix questions overwhelm you, you can ignore them. Notice they are Appendix and we have a note that reads:


... the only chapter assigned (per the LO syllabus) is Chapter 13. Per the note, I decided to retain Chapter 5 because I think it remains relevant. The other two (Chapter 14 and Grinold) are questions that are "discontinued" but we relegate to the Appendix for those customers who may be interested. You wouldn't necessarily have a current reference for them. Thank you!

Thanks for the quick response David!

 

[Nicole Seaman]

@chatty06

You may also find this thread helpful in creating a study plan: https://forum.bionicturtle.com/threads/study-plan-guide.8670/#post-36254. Some members have passed the exam using only the Bionic Turtle materials, while others have had to purchase the GARP books to add to their study plan. Unfortunately, studying for the FRM exam does not have a "one size fits all" approach, as each individual person has a different background and experience. I hope the study guide thread is helpful!

Nicole