Hello junta.
Im well into my first week of Market Risk Measurement & Management (MRMM) and it is truly enjoyable. Alongside I am also learning to use the Texas Instruments BA II+ calculator since BAII+/ BAII+ Professional and HP models are the only ones permitted in the FRM exam. I am frankly happy to see that I dont have to calculate the Yield to Maturity using the long-winded trial and error method and that I can do it just with the click of a few buttons on the calculator.
Leaving aside the BAII+ part, let me tell you that I have been rather slow in studies because of some official work but I have managed to complete the Study notes 1 & 2 in MRMM. While study note 1 is about the general awareness part of why market risk is needed and what is its extent and other such stuff, study note 2 is more specific and talks of Bond Valuation, Yield Curve Fitting, Discount Factors, Estimation of Spot/Forward Rates, Durations, Hedging, Convexity and other such stuff related to bonds. It is indeed a nice read but frankly speaking, the way it has been delivered in Schweser, only a person who has prior understanding or who has studied bond valuation earlier can make sense out of this stuff. Personally, me having done a masters in finance was advantageous because I had to build on the concepts that I learnt earlier.
The next week is going to be even better because I will be doing the major part of MRMM- ie Study Note 3- Derivatives. I intend to complete the entire thing in a week and then move over to study notes 4, 5, 6 & 7. In short, I plan to complete the entire MRMM part by June end- time, family and professional obligations permitting.
My advice for those who are already planning to attack this section first from Schweser- first understand basics of bonds/options/futures/swaps etc and then go reading the stuff mentioned in the Schweser notes. I am sure this will hit the nail on the head and drive home the concepts better.
Secondly, keep on making your notes of the formulae- there are many to be remembered here. It is not as if it is utmost important to remember the formulae but if you do remember, then you will really get a sense of confidence doing the examples and be able to attack any problem in a more easy way- my own personal experience.
I will post more as I progress further. Ciao till then
Hello friends.
I was just talking to Ryan_G11 yday after reviewing Schwesers 2007 FRM study material and while the basic material vis--vis the 2006 study material is pretty much the same, the major difference is that they have regrouped the material not according to subject-weightage but according to topics, which has its own positives and negatives.
While the positives are that you cover any topic at one go i.e. no fragmented learning the major set-back is that it is extremely misleading. For instance the first book contains Quant and VAR fundas but if you look at their total weightage in the exam, then its hardly 15-18 % combined! Now if a poor fellow spends a month doing that then at the end of a month, he has just finished 15% of the entire curriculum ! Even their study plan is all the more misleading because while they have given a good 700 pages to read, they mention that it can be done only in 2 weeks flat !!!! Is it possible? I honestly think no !
Hence my idea is that it will be better to go subject and exam-weightage wise to complete the curriculum and reap the benefits in the end. Devise you own study plan and stick to it. I am doing the same !
All the best for studying and catch you guys later !
I was just talking to Ryan_G11 yday after reviewing Schwesers 2007 FRM study material and while the basic material vis--vis the 2006 study material is pretty much the same, the major difference is that they have regrouped the material not according to subject-weightage but according to topics, which has its own positives and negatives.
While the positives are that you cover any topic at one go i.e. no fragmented learning the major set-back is that it is extremely misleading. For instance the first book contains Quant and VAR fundas but if you look at their total weightage in the exam, then its hardly 15-18 % combined! Now if a poor fellow spends a month doing that then at the end of a month, he has just finished 15% of the entire curriculum ! Even their study plan is all the more misleading because while they have given a good 700 pages to read, they mention that it can be done only in 2 weeks flat !!!! Is it possible? I honestly think no !
Hence my idea is that it will be better to go subject and exam-weightage wise to complete the curriculum and reap the benefits in the end. Devise you own study plan and stick to it. I am doing the same !
All the best for studying and catch you guys later !
Hello friends.
I was just talking to Ryan_G11 yday after reviewing Schwesers 2007 FRM study material and while the basic material vis--vis the 2006 study material is pretty much the same, the major difference is that they have regrouped the material not according to subject-weightage but according to topics, which has its own positives and negatives.
While the positives are that you cover any topic at one go i.e. no fragmented learning the major set-back is that it is extremely misleading. For instance the first book contains Quant and VAR fundas but if you look at their total weightage in the exam, then its hardly 15-18 % combined! Now if a poor fellow spends a month doing that then at the end of a month, he has just finished 15% of the entire curriculum ! Even their study plan is all the more misleading because while they have given a good 700 pages to read, they mention that it can be done only in 2 weeks flat !!!! Is it possible? I honestly think no !
Hence my idea is that it will be better to go subject and exam-weightage wise to complete the curriculum and reap the benefits in the end. Devise you own study plan and stick to it. I am doing the same !
All the best for studying and catch you guys later !
Has the 2007 material become available in Mumbai ???
My flat mate last year finished the FRM course thru Scheweser in 3 week flat and still managed to pass although he just made it on the edge.
So depends on person to person.
Hi Tumtum,
Thanks for the information but I am way too confused.
I would like to know whether the sweser notes are worth buying or not. I heard that the handbook is good enough but it not sufficient, moreover I also heard that the sweser notes are not very good and you have to purchase the core readings..
I am just too confused now.Dont understand where to start from.
Thanks,
Neha.
Hi Tumtum,
Thanks for the information but I am way too confused.
I would like to know whether the sweser notes are worth buying or not. I heard that the handbook is good enough but it not sufficient, moreover I also heard that the sweser notes are not very good and you have to purchase the core readings..
I am just too confused now.Dont understand where to start from.
Thanks,
Neha.
I think you are worrying too much. Go ahead and purchase Schwesers material and I am sure you will sail through. All the best !
Has the 2007 material become available in Mumbai ???
My flat mate last year finished the FRM course thru Scheweser in 3 week flat and still managed to pass although he just made it on the edge.
So depends on person to person.
What was his background?
Hello all.
Just completed the first portion of Fixed Income Securities Valuation (basic and advanced concepts)- a part of the MRMM study.
I feel I am going very slow but then my professional assignments leave me very little time to run faster than this.
It was like visiting a known place once again as I have studied most of the concepts before while doing MS(Finance) . A lot of formula-based concepts given in the reading. My opinions are as follows.
oA basic reading and an understanding of the concept thoroughly coupled with memorizing the relevant formula and knowing its application in and out on your TI BA2+ will do the trick.
o Remembering formula is always advantageous in case of such topics as it makes life a lot easier.
o Please be sure to make separate notes of concepts involving study of inter-relationships between say for example convexity, duration, yield, coupon etc. You should make kind of chit-notes which you can readily refer to clear a concept of a formula.
o Practice and repeated reading of such topics is really essential or else it is possible that on the exam day you will feel that you know what needs to be done to solve a particular problem but you might not be able to actually do so.
These were my quick thoughts on what my progress is so far. Next section in MRMM- derivatives is what is going to be attacked for next couple of weeks. Lets see how it goes. Will keep all posted. Please pour in your suggestions freely and make it a better discussion.
Regards.
Just completed the first portion of Fixed Income Securities Valuation (basic and advanced concepts)- a part of the MRMM study.
I feel I am going very slow but then my professional assignments leave me very little time to run faster than this.
It was like visiting a known place once again as I have studied most of the concepts before while doing MS(Finance) . A lot of formula-based concepts given in the reading. My opinions are as follows.
oA basic reading and an understanding of the concept thoroughly coupled with memorizing the relevant formula and knowing its application in and out on your TI BA2+ will do the trick.
o Remembering formula is always advantageous in case of such topics as it makes life a lot easier.
o Please be sure to make separate notes of concepts involving study of inter-relationships between say for example convexity, duration, yield, coupon etc. You should make kind of chit-notes which you can readily refer to clear a concept of a formula.
o Practice and repeated reading of such topics is really essential or else it is possible that on the exam day you will feel that you know what needs to be done to solve a particular problem but you might not be able to actually do so.
These were my quick thoughts on what my progress is so far. Next section in MRMM- derivatives is what is going to be attacked for next couple of weeks. Lets see how it goes. Will keep all posted. Please pour in your suggestions freely and make it a better discussion.
Regards.
Tumtum SaysWhat was his background?
IIT B.Tech and almost negligible fin experience..
And boy with the speed which you are going you will be ready to give the exam next month and not in Nov!!
any1 frm kolkata gvn the exam pls pm me...
Sssup peeps..
Me one of those MBA aspirants who failed to make it in top 10 Bskools this yr... will take CAT in Nov this year.. Was thinkin of takin FRM exam alongside.. Cud u guys guide me as to how to go about it.. I think the last date for registration is in Oct.. But wud like to get a feel of it b4 takin a decesion whether to take it this yr or next yr..
Cud u guys help me know how to register, frm where to get study material etc etc..
Wud be of gr8 help..
Thanx a ton..
Cheerz
Hi
I just placed order(will reach in couple of hours) for Schweser FRM Notes (CFA fame) ,6 sets in all and for the latest (4th edition) of FRM handbook of Jurion for 2200/- at Laxmi Copy Centre.
The address is:
Laxmi Copy centre
Shop 1, VM Mehta Road
Opp. Rasraj Hotel, Near Mithibai College,
Vile Parle (West)
Mumbai - 56
Ph - 022 2613 4350/5051. Mob 9820541867
DooDeeDoo
Hi
I just placed order(will reach in couple of hours) for Schweser FRM Notes (CFA fame) ,6 sets in all and for the latest (4th edition) of FRM handbook of Jurion for 2200/- at Laxmi Copy Centre.
The address is:
Laxmi Copy centre
Shop 1, VM Mehta Road
Opp. Rasraj Hotel, Near Mithibai College,
Vile Parle (West)
Mumbai - 56
Ph - 022 2613 4350/5051. Mob 9820541867
DooDeeDoo
Hey Dude,
U must have recd d material by now i m sure. How big is dat book by Jorion? Do u think it manageable to read all that stuff by november?? Tumtum is goin at an awesome pace ... i havent yet made up my mind on whether i m appearin this year or the next ... still confused :(. Btw, r the notes delivered to ur place clear and readable?? Sometime fotocopies r really bad ... complete put off :).
Hi,
I'm a chartered accountant and working in an indian IT company as a business analyst in Risk management domain. I have appeared for CFA level 2 exams held in this month.
I have enrolled for the FRM nov 2007 exams and looking for soft copies of Schweser study guide.
I request the fellow forum members to share the URL from where I could download the soft copies of schweser study guides and FRM handbook.
Thanks
Narendra
Hello Everyone,
Can sm1 answer the following questons
1) I have the Schweser notes which comprises of 6 books. Is these books sufficient or do I need to purchase the Jurion handbook for FRM
2) In the Fixed Income part, 2nd chp, ( Bond valuation with a non parallel term structure), there are certain examples given to find the discount factors. The price given for the bond is 101-16 which means 101.50 and 105-31 or 105.9844. Could sm1 xplain why have they given price of the bonds as 101-16 and 105-31 and how does one infer the actual price of the bonds from these prices ?
Thanks!
MAH
Hello Everyone,
Can sm1 answer the following questons
1) I have the Schweser notes which comprises of 6 books. Is these books sufficient or do I need to purchase the Jurion handbook for FRM
2) In the Fixed Income part, 2nd chp, ( Bond valuation with a non parallel term structure), there are certain examples given to find the discount factors. The price given for the bond is 101-16 which means 101.50 and 105-31 or 105.9844. Could sm1 xplain why have they given price of the bonds as 101-16 and 105-31 and how does one infer the actual price of the bonds from these prices ?
Thanks!
MAH
The Quote arises from an old tradition in the bond trading markets where bond prices were quoted in fractions of 32 .
So a quote of 101-16 means 101+16/32 = 101.5
and a quote of 105-31 means 105+31/32= 105.9844
This is actually the fun part.
Like RajatB explained, the bond prices use the "32nds convention". This fact has been mentioned right in the first chapter "bond valuation with paralel shifts in term structure" in bond terminologies itself.
Guys, this is what I was talking about- minor things but if not known can really kill one's mood to study ! Please keep asking for more and RajatB, thanks for the reply- please keep contributing more to this thread.
Like RajatB explained, the bond prices use the "32nds convention". This fact has been mentioned right in the first chapter "bond valuation with paralel shifts in term structure" in bond terminologies itself.
Guys, this is what I was talking about- minor things but if not known can really kill one's mood to study ! Please keep asking for more and RajatB, thanks for the reply- please keep contributing more to this thread.
hey thanks Rajat B
MAH
Guys, I happened to stumble upon these 2 websites while scouting for infor on options. These are really good refreshers and will help in clearing the basics quickly if you have studied about options earlier.
Even if you have not, these websites will help you to learn the basics very quickly. You won't have to read many other books to come to speed with which Schweser's notes discuss these topics. Hope you find them helpful. I found them useful.
http://www.blonnet.com/businessline/iw/2001/07/29/stories/0729g05b.htm
http://www.888options.com/basics/whatis/what_is_1.jsp#equity_options
Regards.
Even if you have not, these websites will help you to learn the basics very quickly. You won't have to read many other books to come to speed with which Schweser's notes discuss these topics. Hope you find them helpful. I found them useful.
http://www.blonnet.com/businessline/iw/2001/07/29/stories/0729g05b.htm
http://www.888options.com/basics/whatis/what_is_1.jsp#equity_options
Regards.
Hello Everyone,
Could sm1 tell me, where in Mumbai, one can buy Texas Instruments BAII plus professional calculators
Thanks!
MAH
Iam having a science background and am working in a branch in a Public sector bank in Mumbai. I have applied for the FRM exam for Nov, 2007 and got the Schweser notes. But, I find the large number of quantitative material intimidating. Can somebody please clarify how many core quantitative questions are likely in the exam. Iam hearing from some of my collegues that most of the actual questions are theoretical and less quantitative in nature. Can somebody, who has friends who have cleared FRM exam, please clarify.
Thanks and regards,
Shankar.
Hello Everyone,
Could sm1 tell me, where in Mumbai, one can buy Texas Instruments BAII plus professional calculators
Thanks!
MAH
The cheapest place to get them in Mumbai is Alpha stores in Vile Parle..
Get down at the station and ask anybody for directions to Alpha there are 7-8 Alhpa stores on one street and one of them will be selling calculators.