FRM Part I study plan

Compute and interpret measures of central tendency, dispersion, skewness, and kurtosis from raw return data

Distinguish between discrete and continuous probability distributions and select the appropriate one for a stated loss process

Calculate expected values and variances for Bernoulli, binomial, Poisson, uniform, and normal random variables

Derive the variance of a two-asset portfolio and interpret the role of covariance and correlation

Construct confidence intervals and conduct one- and two-tailed hypothesis tests on mean returns

Interpret regression output including coefficients, standard errors, t-statistics, R-squared, and F-statistic

Explain the mechanics of Monte Carlo simulation and describe how sampling error and pseudo-random number generation affect results

Differentiate supervised from unsupervised learning techniques and classify a stated modeling problem correctly

Solve for the mean and variance of a linear combination of random variables arising in portfolio and option problems

Compute the price and risk measures of fixed-income instruments using duration, convexity, and DV01

Price a one- and two-period binomial option using risk-neutral probabilities and verify the result against replication

Calculate and interpret option Greeks (delta, gamma, vega, theta, rho) and explain how each shifts with moneyness and maturity

Estimate value at risk and expected shortfall by the parametric, historical simulation, and Monte Carlo approaches

Compare and contrast the strengths and failure modes of each VaR methodology

Explain the mapping of credit exposures to ratings, default probabilities, and recovery rates in credit risk models

Distinguish current exposure from potential future exposure and compute exposure at default for a simple derivative position

Interpret backtesting results for a VaR model, including the binomial test and the trade-off between Type I and Type II errors

Describe stress testing frameworks and explain why stress tests complement rather than replace VaR

Summarize the treatment of operational risk losses under the basic indicator, standardized, and advanced approaches

Distinguish forward from futures contracts and calculate the forward price with and without carry, storage, and convenience yield

Determine the fair value of an interest rate swap and explain the role of the swap rate curve

Compute the payoff and profit at expiry for long and short positions in calls, puts, and covered combinations

Explain how margin, marking to market, and daily settlement generate liquidity and counterparty risk in futures markets

Compare the risk profiles of exchange-traded versus over-the-counter derivatives

Distinguish the principal categories of financial risk and classify a described exposure correctly

Apply the CAPM to compute expected return and the required rate of return on equity

Explain the role of a board-level risk committee and the components of an enterprise risk management framework

Describe the mechanisms of credit risk transfer, including securitization, credit derivatives, and their systemic implications

Summarize the GARP Code of Conduct and apply it to a stated ethical dilemma

Integrate quantitative methods with valuation by re-solving 20 problems that combine regression or simulation with risk measurement

Identify personal weak areas from prior quiz logs and re-derive the underlying formulas from first principles

Solve mixed-topic problem sets under a 90-second-per-question time constraint

Rebuild the consolidated formula sheet to cover every domain without notes

Complete two full-length timed mock examinations under exam-day conditions

Analyze all incorrect answers and classify each error as conceptual, computational, or time-management

Re-derive the ten most frequently missed formulas from memory

Verify readiness by testing that every domain scores at or above 60% on the second mock