Contents of frm level 1 regular examination
1, quantitative analysis
This chapter investigates some mathematical knowledge, but not much, which can be understood and mastered through review. This part is a certain formula that we need to memorize, and the key lies in understanding.
The key points are: expected return, correlation, standard deviation, covariance, standard deviation, skewness, kurtosis, T distribution, hypothesis testing, Bayesian formula, regression: time series, autocorrelation, multiple * * * linearity.
2. Valuation and risk model
Needless to say, this part will also appear in the second-level exam, so it needs to be well understood and mastered both in the exam and in the accumulation of knowledge. Therefore, if necessary, you can directly consult some teachers or classmates who are also preparing for the exam.
Key knowledge: fixed income (many basic knowledge points), option valuation (binary tree, BSM, Greek alphabet), market risk (introduction to VaR, EWMA, GARCH), credit risk, operational risk, bond and option pricing are the most important of FRM, and there are many related calculations.
3. Risk management foundation
This is relatively basic knowledge, and the investigation of this part of knowledge is usually mixed with other examination questions. Of course, there are also independent problems. Because it is the basic part, many of them are frequent test sites.
The key points are: CAPM formula and its application, arbitration pricing theory and multi-factor model, financial disaster, GARP code of conduct (two questions are fixed every year in the association code), and the credit crisis in 2007.
4. Financial markets and products
Although most people think this subject is not very difficult, they will find that many test sites are not mastered during the exam. Many candidates will think that FRM Level 1 exam has many problems in financial markets and products, and it is difficult.
Many key points: futures (basic concepts, futures pricing, futures hedging, interest rate futures), forwards (basic concepts, forward pricing, FRA), swaps (basic concepts, fixed interest rate pricing of interest rate swaps), central counterparties (first-and second-level new knowledge points), foreign exchange risks, MBS, rating agencies, options (basic concepts, options portfolio).
Has the content of FRM exam changed?
In 2023, the content of FRM exam changed. In order to ensure the timeliness of FRM exams, GARP will generally update the contents of the next year's exam syllabus around 65438+February every year. However, in the short term, the GARP Association will not make major adjustments to the syllabus, but will only adjust the test sites of certain subjects, so candidates can still review the old syllabus before the new syllabus is introduced.
Frm Level 1 Examination Subjects in 2023
In 2023, the subjects of frm Level 1 exam are quantitative analysis, financial market and financial products, risk management foundation and risk modeling.