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Or in really simple terms: it is basically used to reduce the number times a particular model needs to be solved in an simulation. You focus on a particular important (-> importance sampling) part on the distribution. In risk management for example, it might be a good idea to focus on tail...

Hello ShaktiRathore, thank you for comments. So I will focus on BT/Schweser Notes. Basic maths is not a problem and many exams I had during my studies were built upon this "calculator and formula"-method like it is used for the FRM. I already know almost all formulas required for the exam. The...

Hi everybody, I'm going to do the Part I exam in May and have some questions regarding my study plan: My background: I have a Bachelor and Master Degree in Banking and Finance and covered a lot of the FRM Syllabus (especially Financial Instruments and Risk Management) during the last 5 years...

Good evening, does anyone know if the downloaded practice exams (which are free for paid in candidates) have any duration under which I can read them? When I loaded them, I read that the will be availeable in my library for only 30 days. Is this a misunderstanding or is there a limited time...

That's really interesting and very helpful, thank you!

Thank you, ShaktiRathore! Do you know if there is any publicly known information on how much of the questions have to be answered correctly to pass the exam? (e.g. something like 50%, 70%) An if the questions are equally weighted in terms of points? Best Regards!

Thank you very much for your answers so far. Maybe you can tell me the answer of two further oquestions: - Hopefully, we are allowed to use some kind of "white paper" for our calculations. Do we have to bring paper by ourselves or will paper and pencil be provided by GARP? - I have often...

the foward rate should be lower than the future rate for IR products, because of the disadvantageous margin system of futures

Hi, nice distinction. I basically know spot rates as a synonym for zero bond investment rates. Another nice relation is that between zero rates and the par yield, since the par yield can be seen as a weighted spot rate over the horizon. And what is the difference between swap rate and par...

Good morning, you wrote: "Stop-loss is flawed because it is ex ante (activated after a loss incurred)" .... I would therefore call is an ex post (=after a loss) risk measure; the VaR would rather be an ex-ante (=before a loss occurs) risk measure. The basic fatures can be summarized as...

Hi, the DGAP includes both, the Duration of assets and liabilites as it calculated as: D(assets) - D(liab.) * (TA/TD) If the DGAP is positive, this means that the average Duration of assets exceeds the average Duration of liabilities, which implies that Assets are more sensitive to interest...

I would say that hawayi has posted the right formala to calculate the VaR, that is to include the mean. So recognizing the mean in the VaR calculation is not wrong and can also be found in the literature. However, in practice the mean is usually neglected because it is small - maybe its a bit...

Hi everybody, I'm going for the FRM exam in May and have some (maybe a bit funny sounding) questions concercning the procedure of the exam: - I'm used to work with the following calculator: Texas Instruments TI-30X II S. Do you know if the GARP-listed Texas Instrument Calculator is some type...

Hi, I would even go one step further and say that maths won't bring you any advance for this exam, except for the basic statistical understanding (hypothesis testing, distributions etc.). This is basically due to the fact that you have to learn the formulas by hard and are not allowed to use...