exam FM

[examp]

hi guys, any advice on how to start for preparing FM given that I don't have any previous knowledge of financial mathematics or economics.
Is the exam FM just about memorizing formulas and applying them or you are asked to cram any theoritical questions also.

Thanks for any feedback.

[cmack]

FM has its share of formulas to memorize, however without any finance background I think it will be a challenge. You will have to wrap your head around some concepts like present value, accumulated value and so on. I had the hardest time straightening out the who nominal interest rate versus effective interest rate deal. I'm sure most would thing that was an easy concept.

As far as material, I used Dr. Ostaszewski's ASM manual exclusively since I had success with his P manual. Plus I love that he provides 15 practice exams. I don't believe his FM manual is widely used. Without a background in financial mathematics, I would suggest some alternate materials to brush up on it in addition to any manual you purchase.

[examp]

Exam FM

thanks for the advice, I just bought Dr. Broverman's manual for FM but I'm having hard time to grasp the concepts since I have no background in Finance. Can you give me some tips on how to learn the concepts?

Thanks.

[cmack]

I used (possibly overused) time diagrams on as many problems as possible to see exactly when cash flows occurred. This helped me a lot. The notation quite frankly was intimidating for me at first as well with respect to the annuities and the dots. As I worked more problems I got more comfortable with it. Finally understanding the use of v instead of 1/(1+i) was a breakthrough for me also. These things may be ridiculously simple to others but caused me to stumble at first. I don't have specific 'how to study' advice. We all do that a little differently. If a particular concept or section gives you trouble, ask about it on this board and you will get tons of help and explanation.

[examp]

hi

thanks a ton.