Page 1 Frm Part I Book 2: Quantitative — Analysis...

Recent additions include Machine Learning (ML) methods such as neural networks, decision trees, and regularization (LASSO/Ridge). 2. Strategic Focus for Page 1 & Chapter 1

Stationary and non-stationary series (AR, MA, ARMA models) and simulation techniques like Monte Carlo and bootstrapping. Page 1 FRM PART I BOOK 2: QUANTITATIVE ANALysis...

is a foundational pillar of the FRM Part I curriculum, accounting for 20% of the exam . This book transitions from general risk theory to the mathematical toolkit used to identify and manage risk, starting with Chapter 1: Fundamentals of Probability . Guide to Quantitative Analysis (Book 2) 1. Core Subject Areas Recent additions include Machine Learning (ML) methods such

Distinguishing between independent events (where the occurrence of one doesn't change the probability of the other) and mutually exclusive events (which cannot occur at the same time). is a foundational pillar of the FRM Part

Simple and multiple linear regressions, diagnostics (addressing issues like multicollinearity and heteroskedasticity), and predictive performance.