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

A "hot topic" for examiners, used to update prior probabilities as new information becomes available. Page 1 FRM PART I BOOK 2: QUANTITATIVE ANALysis...

Stationary and non-stationary series (AR, MA, ARMA models) and simulation techniques like Monte Carlo and bootstrapping. Sample moments, the Central Limit Theorem (CLT), and

Sample moments, the Central Limit Theorem (CLT), and hypothesis testing (z-tests and t-tests). Guide to Quantitative Analysis (Book 2) 1

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

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

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