CORE AREAS to study for Quantitative Methods

[Aamir Sarwar]

Hi BT,

I'd like to know if anybody can help me pin point the core areas for the QM part of the syllabus. By Core areas I mean the areas that have more probability of being tested in the FRM Part 1 exam. I know that any Learning Outcome is fair game for the exam but by pin pointing CORE Areas would help students create like check list or essentials concept without which they wouldn't be appearing in the exam. Would appreciate if David or Nicole or anybody who has already passed can come forward and advice us for QM and also for the remaining three topics.

Regards

A SARWAR

 

[Jo_]

The key questions i remember from the 2014 Part 1 exam relating to QM are:
1) Distributions: i remember because it was the very first question: an application on poisson. There were 1 or 2 on normal distribution too.
2) Regression: 2 questions on interpretation / application of the regression result (where you get betas) + 1/2 interpretation questions based on graphs/plots + a question on R² calculation
3) You can expect a question on Bayes / probability trees

As you mention though, any AIM is fair game. But everything on regression is definitely core and to be tested in multiple questions on the exam.

On another note, if you want to have a summarized review on key concept per topic, i advice @David Harper CFA FRM CIPM 's "focus review" videos. They definitely aren't sufficient to be prepared for the exam (that's not what they are for), but they do give a good overview of key concepts (approx. 1 hour per topic if i remember correctly). I remember using them a few days before the exam as cross-check to see if i didn't miss anything.

Hope that helps,

Jo