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Below is the updated pass rate chart (cc @Nicole Seaman ). Really brief observations: General Trends Long-Term Stability Since May 2010, the long-term average (LT μ) pass rates have been 46.8% for Part 1 and 56.5% for Part 2. The Part 1 pass rate has remained relatively stable around its...

@OHe1274 Hi, The answers are posted inside of our paid version to the forum.

@Peter S Aa of 2025 we no longer offer the basic version. Our foundation series includes video lectures, study notes, slides, and practice questions while the mastery series includes our learning spreadsheets. The learning spreadsheets are great for being able to recreate problems and create new...

@ejaz_malik Hi, I know the naming convention can look complex but let me try to break it down. The P1 (P1-T2-QA1-QA2-QA3-prob-random-variables-v3.xlsx) stands for part 1 (AKA Level 1 since there are 2 levels to the exam). The T2 denotes that this is the second topic of Part 1 - Quantitative...

@NAndr5521 I'm working on fixing this. Because the post is so old its a little hard to find the links.

Hi @MMonk4392 , Both C and D are mathematically equivalent. However, I believe the more conceptually accurate answer is D since it represents the simplified and final form of the equation where the expected return E(Ri) equals the expected return of the market portfolio E(RM). As David has...

Hi @capri I will summarize the points as best as I can below: A leveraged TRS involves two parties: Total Return Receiver (TRR): This party seeks leveraged exposure to the underlying asset (bond, loan, etc.) without actually owning it. Total Return Payer (TRP): This party agrees to pay the...

Hi @AChav3316 I'll try to paraphrase what I took from David's earlier response. When the hedge funds initially sold (shorted) the equity tranche, they received a fixed spread. This spread was based on the market's assessment of the risk at that time, which factored in a certain level of...

@SKhai2554 Hi, I believe the confusion is coming from the sequences is the placement of the CCP's equity capital. While both can technically be correct the video’s description is more inline with industry practice. The CCP is most likely to use its first line of equity capital before going...

@TariqA7 To this time period I have not seen differentiation or integration on the exam.

@SKuma2148 Hi, I think the biggest difference you should be aware of is who is receiving/paying the upfront premium. Short Call: When you short a call option, you receive a premium (payment) upfront but take on the obligation to sell the underlying asset at the strike price if the option is...

Below is the updated pass rate chart (cc @Nicole Seaman). Really brief observations: This is now a 14-year sample (28 exams; starting with May 2010 when the FRM split into two parts). The Part 1 pass rate of 45.0% sits just below its historical average of 46.1%. The Part 2 pass rate of 53.0%...