Chapter 1 Gujarati : Nature of Econometrics

I will start with a pretty simple chapter from Gujarati.I appreciate your encouragement and hope to receive more that should keep me motivated to keep this blog alive always.We should get down to the main business now.

What is Econometrics?

In very simple words,this is analysis of economic data.For analyzing economic data we use a lot different tools and mostly they are different disciplines of Mathematics.In FRM we study simple Statistical inference and regression analysis to do this.To put it formally, It is application of mathematics(stats) to economic data to get some mathematical model that explains it.It could also be to validate the model.


Different types of data used  for Analysis?

Core reading mentions three different kind of data for this.
 a) Time-series 
 b) Cross Sectional
 c) Pooled

Quants : Start with Gujarati

For the last three years, GARP has been following Gujarati book for major part of Quants. It consists of 8 chapters mainly and most of them are of easy to moderate level.
Ideal time to be spent on these chapters should not be more than 2 weeks.

I plan to write on important topics and provide a summary for all the chapters and supplement them with some spreadsheet, question from previous year FRM and some good questions that I can create.

Thanks. Keep browsing.

The FRM 2010. Fuel yourself and get going : Intro

Financial Risk Management (FRM) is now a two tier exam. The journey seems to get tougher day by day. People use to ask me on a forum "How do I prepare for the exam”, "Can you help me with the preparation" and on and on. There are various training schools that I use to direct them too. They are good, in fact very good for I learnt my stuff from there only. I don't know how this blog will help them. I am yet to decide if this will supplement them or will be a stand alone complete module (certainly depends on the first month response).

As one of my friends put it long back when we were college: "There are only two kind of people in this world a) Trained and b) Untrained". Those days I use to despise him for this statement because we use to feel we are better than others. This thing became apparent to me when I started working. I was good in some part and I was bad in other.But you can become good in the other part by devoting some time to it.

Intended Audience
This blog is intended to provide some guidelines and tips to FRM aspirant, mainly the working class who doesn't have time to go through thick FRM material.I wish to cover the complete level -1 and Level - 2 materials till May, 2010 if time permits. The audience is requested to also go through the core reading. The blogs will only cover the difficult concepts of each topic. Of course you can also request and ask questions in the comments.

My Plan
I wish to cover the complete Quantitative, Market and Credit discipline in detail for both Level 1 and Level 2.
For the other two modules, I plan to give basic guidelines only.My deadline for complete Quant and Market will be 25th of February,2010 and then we will concentrate on Credit and Questions only.
Thanks.Awaiting some encouragement from you guys.Keep browsing.
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