Page 1 Frm Part I Book 2: Quantitative Analysis... May 2026

Stationary and non-stationary series (AR, MA, ARMA models) and simulation techniques like Monte Carlo and bootstrapping.

As you begin with the first reading ( Fundamentals of Probability ), prioritize these high-yield concepts that GARP frequently tests: 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 Stationary and non-stationary series (AR, MA, ARMA models)

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 Guide to Quantitative Analysis (Book 2) 1

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

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).