Relevance of BT Practice Question Pdfs for 2012 Part 1 Exam

[Robert]

Hi David,

I see the following Practice Question pdf's (and forum questions) for Quantitative Analysis:

Questions 1 to 133:
Gujarti (Chapters 1-8)
Jorion (Chapter 12)
Hull (Chapter 21)
Rachev (Chapters 2-3)

Latest Forum Questions:
Questions 201-206

Are all of these practice questions, particularly the ones listed under Gujarti, still relevant to the 2012 Part 1 exam? I don't see Gujarti as an author on the list in the syllabus (shown below). Also, do the Hull Chapter 21 questions correspond to Hull Chapter 22 in the syllabus (I'm assuming that they do and that the chapter number differs because of an edition change)? Also, I didn't see any practice questions for Allen, Boudoukh and Saunders.

I apologize if I'm missing something. I'm just trying to get organized for my studies on the Quantitative Analysis topic.



Here is the Quantitative Analysis syllabus for the 2012 exam per the GARP Study Guide:

James Stock and Mark Watson, Introduction to Econometrics, Brief Edition (Boston: Pearson Education, 2008).
- Chapter 2 -> Review of Probability
- Chapter 3 -> Review of Statistics
- Chapter 4 -> Linear Regression with One Regressor
- Chapter 5 -> Regression with a Single Regressor: Hypothesis Tests and Confidence Intervals
- Chapter 6 -> Linear Regression with Multiple Regressors
- Chapter 7 -> Hypothesis Tests and Confidence Intervals in Multiple Regression

Svetlozar Rachev, Christian Menn, and Frank Fabozzi, Fat-Tailed and Skewed Asset Return Distributions:
Implications for Risk Management, Portfolio Selection and Option Pricing (Hoboken, NJ: John Wiley & Sons, 2005).
- Chapter 2 -> Discrete Probability Distributions
- Chapter 3 -> Continuous Probability Distributions

Jorion, Value-at-Risk:The New Benchmark for Managing Financial Risk, 3rd Edition.
- Chapter 12 -> Monte Carlo Methods

John Hull, Options, Futures, and Other Derivatives, 8th Edition (New York: Pearson Prentice Hall, 2012).
- Chapter 22 -> Estimating Volatilities and Correlations

Linda Allen, Jacob Boudoukh and Anthony Saunders, Understanding Market, Credit and Operational Risk:
The Value at Risk Approach (Oxford: Blackwell Publishing, 2004).
- Chapter 2 -> Quantifying Volatility in VaR Models

Thanks,
Robert

 

[David Harper CFA FRM]

Hi Robert,

Re: "Are all of these practice questions, particularly the ones listed under Gujarti, still relevant to the 2012 Part 1 exam?"

Yes, most definitely. Although, since this is January and we are working hard to re-deploy 2012, this is the most stressful part of my year because we have not yet oriented you properly to the 2012 curriculum. In addition to new questions and exam-length (mock), we will be refreshing/updated the "old questions" (primarily, as we add new PDFs, we will consolidate old PDFs for clarity).

However, all of these are spot-on relevant to P1.T1. Quantitative because: GARP merely swapped the superior Gujurati for the (arguably) inferior Stock and Watson, without virtually ANY CHANGES to the AIMS (the changes including terminology corrections i myself submitted; e.g., RSS becomes SSR is example of a small semantic change). The key implication for this text swap is a hint that GARP will continue to quiz econometrics LESS deeply than the AIMs have implied. Therefore, frankly, the chief and fair criticism of our historical database would be: it contains questions that are more difficult and deep than the exam will be. (we are trying to help with this is the upcoming repackaging). Nonetheless, the questions quiz on the same AIMs that appear in 2012.

The other authors and readings you cite remain valid as 1:1 correspondences; e.g., old Hull Ch 21 matches new Hull Ch 22, both are ESTIMATING VOLATILITIES AND CORRELATIONS
Please note GARP just released this PDF to address this sort of superficial change
(I love the Hull text, but our chapters haven't really changed in the last TWO editions)

Re: Linda Allen: you are correct, we are always rolling new questions, which is a massive use of my time, so i sometimes make a judgement call to skip a reading.
http://forum.bionicturtle.com/threa...nda-allen-chapter-3-putting-var-to-work.5250/

I hope that helps. My bottom line is: YES, those are still good questions and, gradually as we get nearer to the May exam, we will bring more organizational clarity to the database (although, of course you want to start T2 now, of course!).

Thanks, David

 

[Robert]

Hi David,

First of all, I'd like to thank you for your timely responses, particularly since you're so busy preparing materials this time of year. The level of customer service that you are providing on Bionic Turtle is unmatched and your feedback is very much appreciated.

The only thing I have to do now is review all of the Quantitative Analysis material before I get to the endless supply of QA practice questions.

If my experience with Foundations is a guide (it took about three days or 10-11 hours worth of time to get through all of those questions), it will take about two weeks to get through all of the QA practice questions (it appears that there are an enormous amount of QA practice questions).

Thanks,
Robert