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

The curriculum typically spans 13 to 15 readings, building from basic statistics to advanced predictive modeling:

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

Simple and multiple linear regressions, diagnostics (addressing issues like multicollinearity and heteroskedasticity), and predictive performance. Page 1 FRM PART I BOOK 2: QUANTITATIVE ANALysis...

Fundamentals of probability, random variables (discrete and continuous), and common univariate/multivariate distributions.

Sample moments, the Central Limit Theorem (CLT), and hypothesis testing (z-tests and t-tests). The curriculum typically spans 13 to 15 readings,

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

A "hot topic" for examiners, used to update prior probabilities as new information becomes available. Core Subject Areas Simple and multiple linear regressions,

As you begin with the first reading ( Fundamentals of Probability ), prioritize these high-yield concepts that GARP frequently tests: