At first glance I’m thinking this is the toughest part of the Level 1 curriculum. Pretty broadly covers most of the quant material from Level 1 and 2 of the CFA plus some additional stuff. How deep a knowledge do you think we need of some of the abstract stuff like pareto, beta, gamma and weibul distributions? I feel I can read/memorize basic stuff on this but I’m not really a math guy so don’t know how easy it is going to be to fully understand this stuff.
Just memorize what distributions are used in what situations.
You don’t think they will go into depth on how to interpret the different parameters of the generalized pareto, weibull and beta distributions?
They may ask for an interpretation, but a very general one. Don’t worry about the incredible detail. While the underlying text may yield a better understanding, you should be able to pass with the schwesser overview Worry about more detail on the credit/operating/market risk sections. I passed last year with nothing but schwesser. 1st quartile in all categories, except quant. Another note, I noticed when I completed the old FRM exam questions, I discovered formulas that were not even mentioned in the guide. That formula was on the FRM exam that year too, so look out for that. Also, make sure you know the Basel II capital requirements + details, it was tested heavily last year.
is there a requirement to get a certain quartile in all areas (ie. no topic area under a certain quartile)? Just wondering, since there is very little info on how the test is actually graded on the FRM website that I could find. If this info exists somewhere on the GARP site, I’d appreciate if someone can post the link…