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I'm taking level 1 in december too and had the same question as yours. I figured i'd take level 2 in june, if i pass i'll go for level 3 in 2012. If i dont pass, i will retake level 2 in 2012 but will go for FRM level 1 in november 2011 as i would have already covered level 2 material and probably wouldnt need as much time if i need to retake it.

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