## FRM Pass Rate and Grading

What’s the FRM Exam Pass Rate and how are you graded? In May 2014, the FRM Exam pass rates were as follows: Part I – 42.5% Part II – 58.1% The following table provides the historical pass rates for FRM exam.…

## ERP vs. FRM Exam

Question: I know ERP and FRM are two different certifications, but I would like to know which one is more beneficial from a career perspective? Should I do FRM or ERP if I want to be in the risk management…

## CFA Vs. FRM: Which Designation is Right for You?

This is one of the most commonly debated questions among students who have made up their mind about furthering their career and adding a designation such as CFA, FRM, or CAIA to their name. Making the right choice can be…

## FRM Exam Study Plan in Excel

FRM is a difficult exam with a huge list of readings prescribed by GARP. FRM Part 1 alone has 52 readings for teh current syllabus. Along with a job and With limited time to study it is important that you…

## Key Dimensions that Characterize Acceptable Data

Organizing the rules of data quality into dimensions not only improves the specification and measurement of the data quality, it also provides the framework under which quality can be measured and reported. This in turn enables better governance of data…

## Risk Taking: A Corporate Governance Perspective

This reading is a part of the syllabus for FRM Part 1 Exam in the section ‘Foundations of Risk Management’. In the first two sections the book lays out the scope of risk management by defining risk and exploring risk governance. The…

## Standard Error in Linear Regression

A simple (two-variable) regression has three standard errors: one for each coefficient (slope, intercept) and one for the predicted Y (standard error of regression). While the population regression function (PRF) is singular, sample regression functions (SRF) are plural. Each sample…

## Type I and Type II Errors

When drawing an inference (from a sample statistic, about a population parameter), there can be two types of errors: Type I and Type II. Type I error, also known as error of the first kind, occurs when the null hypothesis…

## Bootstrapping Value at Risk (VaR)

This is an illustration, using a simple portfolio of four stocks over one week, of the bootstrap method. Like the Monte Carlo, we want to simulate each stock (in the portfolio) forward in time. If today is time t, then…

## Extreme Value Theory

Extreme value theory (EVT) aims to remedy a deficiency with value at risk (i.e., it gives no information about losses that exceed the VaR) and glaring weakness of delta normal value at risk (VaR): the dreaded-fat tails. The key is…