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  1. Suzanne Evans

    Good luck and New Website Coming Soon!

    Good luck to all those sitting for the FRM this weekend. Just a reminder... Our new website launches this coming Monday. Our site will be down Sunday evening thru Monday. We apologize for any inconvenience. Here is our new home page video for our upcoming website that launches Monday...
  2. Suzanne Evans

    Limited Forum Support 6/24 - 6/30

    June 24th - June 30th there will be limited forum support. David will resume forum support on Monday, July 1st.
  3. Suzanne Evans

    P1.T2.311. Probability Distributions III, Miller

    AIMs: Describe the properties of linear combinations of normally distributed variables. Identify the key properties and parameters of the Chi-squared, Student’s t, and F-distributions. Questions: 311.1. George the analyst creates a model, displayed below, which generates two series of random...
  4. Suzanne Evans

    Limited Forum Support May 19th - May 26th

    May 19th - May 26th there will be limited forum support. David will resume forum support on Monday, May 27th. Best of luck to everyone taking the exam. As always, we look forward to your feedback after the exam. Good luck!
  5. Suzanne Evans

    Upgraded Documents

    Hello all! For those of you whom haven't noticed, the practice question documents are being upgraded (we are replacing the old documents) according to a new style as well as updated carefully by David to correct any previous errors and links to take you directly to the practice questions within...
  6. Suzanne Evans

    FRM Part I Review Program in New York, Boston and Chicago (Pass or a money back guarantee!)

    Would you like to boost your FRM preparation with live classroom training? If so, we have news to share. Bionic Turtle is partnering with EduPristine, who is launching their successful FRM Part I Review Program in New York, Boston and Chicago. Hundreds of FRM Exam candidates have already...
  7. Suzanne Evans

    P1.T2.303 Mean and variance of continuous probability density functions (pdf)

    AIMs: Define, calculate, and interpret the mean, standard deviation, and variance of a random variable. Questions: 303.1. Assume a continuous probability density function (pdf) is given by f(x) =a*x such that 0 ≤ x ≤ 12, where a is a constant (we can retrieve this constant, knowing this is a...
  8. Suzanne Evans

    P1.T2.300. Probability functions (Miller)

    AIMs: Describe the concept of probability. Describe and distinguish between continuous and discrete random variables. Define and distinguish between the probability density function, the cumulative distribution function and the inverse cumulative distribution function, and calculate...
  9. Suzanne Evans

    Work Verification Assistance

    We've received quite a few comments and requests about assisting you on hearing back from GARP on your work verification. If it has been in excess of 4 weeks since you have submitted your work verification and you have not heard back, please send the following information to Suzanne...
  10. Suzanne Evans

    P2.T5.304. Ho-Lee and arbitrage-free interest rate models

    AIMs: Describe the process of and construct a tree for a short-term rate under the Ho-Lee Model with time dependent drift. Describe uses and benefits of the arbitrage-free models and assess the issue of fitting models to market prices. Questions: 304.1. The current short-term rate, r(0) is...
  11. Suzanne Evans

    P1.T1.304. Probabilistic decision-making approaches

    AIM: Compare and contrast the different types of probabilistic approaches used to estimate value and contrast probabilistic approaches in general with risk-adjusted methods. Questions: 304.1. Peter analyzes a project with that will require an initial investment (cash outflow) of $50.0...
  12. Suzanne Evans

    P2.T5.303. Simulations with short-term interest rate models

    AIMs: Calculate the short-term rate change and standard deviation of the change of the rate using a model with normally distributed rates and no drift. Describe methods for handling negative short-term rates for term structure models Questions: 303.1. Analyst Barry runs an short-term...
  13. Suzanne Evans

    P1.T1.303. Risk estimation in ERM

    AIMs: Identify the four steps in the AIRMIC risk management process and summarize the approach used in each step. Identify the four risk treatment strategies a firm can use to manage its risks. Questions: 303.1. There is no universal agreement on the process to be followed in the...
  14. Suzanne Evans

    P2.T5.302. Term structure models with and without drift

    AIM: Describe the process and effectiveness of the following models, and construct a tree for a short-term rate using the following models: A model with normally distributed rates and no drift (Model 1); A model incorporating drift (Model 2) Questions: 302.1. Analyst Greg is constructing an...
  15. Suzanne Evans

    P1.T1.302. Risk-adjusted discount rate

    AIMs: Describe how the value of a risky asset or project can be estimated through the development of a risk-adjusted discount rate, how such a risk-adjusted discount rate can be created, and strengths and weaknesses of this approach. Describe problems which arise when using historical betas and...
  16. Suzanne Evans

    P2.T5.301. Term structure's risk premium

    AIMs: Calculate the convexity effect using Jensen’s inequality. Calculate the price and return of a zero coupon bond incorporating a risk premium Questions: 301.1. The interest rate tree below shows the true process for a one-year interest rate. The current one-year spot rate is 7.0%. Next...
  17. Suzanne Evans

    P1.T1.301. Enterprise risk management (ERM)

    AIMs: Describe the role of risk governance in a corporation. Identify Enterprise Risk Management (ERM) approaches and explain how they address risk management in an organization. Describe how the value of a risky asset or project can be estimated through the development of a risk-adjusted...
  18. Suzanne Evans

    P2.T5.300. Interest rate expectations

    AIMs: Explain the role of interest rate expectations in determining the shape of the term structure. Apply a risk-neutral interest rate tree to assess the effect of volatility on the shape of the term structure. Questions: 300.1. The interest rate tree below shows the true process for a...
  19. Suzanne Evans

    P1.T1.300. Definition of risk

    AIMs: Define risk, identify the classifications of risks, and explain the role played by risk in value creation. Describe a risk profile and explain how one is created. Questions: 300.1. You attend a Board meeting devoted to reviewing a firm's proposed risk profile. Your fellow Director Bob...
  20. Suzanne Evans

    2013 FRM Calendar (Updated 8/15/2013)

    It's that time of the year again. It's time to begin preparing for the 2013 FRM Exam. In 2013, we are transitioning to a video for each key reading, such that during the first half of the year (i.e., before the May exam), we will only be publishing certain key videos. For example, Part 2...