Course Plan Part 1 PDF

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FRM PART I May 2020
15-week STUDY PLAN
Micky Midha
BE, CFA®, FRM, LLB www.midhafin.com
____________________________________________________________________________________________________________
www.midhafin.com
© 2020 MidhaFin
REPRODUCTION OF ANY PART OF THIS DOCUMENT IS STRICTLY PROHIBITED
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INSTRUCTIONS www.midhafin.com
• Before the start of the first lecture, candidates are advised to learn the fundamentals of Time
Value of Money along with the functionalities of the BA II Plus Calculator, although they will be
taken up in the lectures wherever required.
KEY used to represent the four modules:
FRM – Foundations of Risk Management

QTA – Quantitative Analysis
FMP – Financial Markets and Products
VRM – Valuations and Risk Models
____________________________________________________________________________________________________________
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© 2020 MidhaFin
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INSTRUCTIONS www.midhafin.com
The study plan has been structured after very careful analysis, and the topics have been
sequenced in such a way so as to systematically link one topic after the other.
According to the Instructor – “It’s not a wise strategy to prepare for the exam on a module by
module basis. There are some concepts which are used in an earlier topic but discussed in
detail in a later topic in another module. For example – Beta is introduced in CAPM in the
Foundations of Risk Management Module, but the quantitative aspect of beta is discussed in
Linear Regression in the Quantitative Methods Module. Hence, the sequence of topics to
prepare for the FRM Part 1 and Part 2 exams becomes very important.”
The study plan has taken care of the sequence in the best possible way. Also, unrelated theory
portions have been scattered in the timeline so as to get a good blend of theoretical and
numerical based topics.
You are strongly advised to follow this sequence and the schedule.
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© 2020 MidhaFin
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WEEK 1 www.midhafin.com
1) Fundamentals of Probability
[QTA-1]
2) Random Variables
[QTA-2]
3) Common Univariate Random Variables

[QTA-3]
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1) Multivariate Random Variables

[QTA-4]
2) Sample Moments
[QTA-5]
3) Hypothesis Testing
[QTA-6]
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1) Linear Regression
[QTA-7]
2) Regression with Multiple Explanatory Variables

[QTA-8]
3) Regression Diagnostics
[QTA-9]
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1) Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
[FRM-5]
2) The Arbitrage Pricing Theory and Multifactor Models of Risk and Return
[FRM-6]
3) Stationary Time Series

[QTA-10]
4) Nonstationary Time Series

[QTA-11]
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© 2020 MidhaFin
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1) Introduction to Derivatives
[FMP-4]
2) Exchanges and OTC Markets

[FMP-5]
3) Central Clearing
[FMP-6]
4) Properties of Interest Rates (Part 1)

[FMP-16]
5) Futures Markets
[FMP-7]
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1) Using Futures for Hedging

[FMP-8]
2) Foreign Exchange Markets

[FMP-9]
3) Pricing Financial Forwards and Futures

[FMP-10]
4) Commodity Forwards and Futures

[FMP-11]
____________________________________________________________________________________________________________
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© 2020 MidhaFin
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1) Properties of Interest Rates (Part 2)

[FMP-16]
2) Pricing Conventions, Discounting and Arbitrage

[VRM-9]
3) Interest Rates
[VRM-10]
4) Bond Yields and Return Calculations

[VRM-11]
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1) Applying Duration, Convexity and DV01

[VRM-12]
2) Modeling Non-Parallel Term Structure Shifts and Hedging

[VRM-13]
3) Corporate Bonds
[FMP-17]
4) Mortgages and Mortgage Backed Securities

[FMP-18]
5) Anatomy of the Great Financial Crisis of 2007-09

[FRM-10]
____________________________________________________________________________________________________________
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© 2020 MidhaFin
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1) Interest Rate Futures

[FMP-19]
2) Swaps
[FMP-20]
3) Simulation and Bootstrapping

[QTA-13]
4) Banks
[FMP-1]
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© 2020 MidhaFin
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1) Options Markets
[FMP-12]
2) Properties of Options
[FMP-13]
3) Trading Strategies
[FMP-14]
4) Exotic Options
[FMP-15]
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© 2020 MidhaFin
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1) Binomial Trees
[VRM-14]
2) The Black-Scholes-Merton Model

[VRM-15]
3) Option Sensitivity Measures: The “Greeks”

[VRM-16]
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1) Measuring Returns, Volatility and Correlation

[QTA-12]
2) Measures of Financial Risk

[VRM-1]
3) Calculating and Applying VaR

[VRM-2]
4) Measuring and Monitoring Volatility

[VRM-3]
____________________________________________________________________________________________________________
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© 2020 MidhaFin
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1) The Building Blocks of Risk Management

[FRM-1]
2) How Do Firms Manage Financial Risk?

[FRM-2]
3) The Governance of Risk Management

[FRM-3]
4) Credit Risk Transfer Mechanisms

[FRM-4]
5) Measuring Credit Risk

[VRM-6]
____________________________________________________________________________________________________________
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© 2020 MidhaFin
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1) External and Internal Credit Ratings

[VRM-4]
2) Country Risk: Determinants, Measures, and Implications

[VRM-5]
3) Operational Risk
[VRM-7]
4) Stress Testing
[VRM-8]
5) Risk Data Aggregation and Reporting Principles

[FRM-7]
____________________________________________________________________________________________________________
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© 2020 MidhaFin
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1) Enterprise Risk Management and Future Trends

[FRM-8]
2) Learning from Financial Disasters

[FRM-9]
3) GARP Code of Conduct

[FRM-11]
4) Insurance Companies and Pension Plans

[FMP-2]
5) Fund Management
[FMP-3]
____________________________________________________________________________________________________________
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© 2020 MidhaFin
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END OF PLAN
THANK YOU
Micky Midha
BE, CFA®, FRM, LLB www.midhafin.com
____________________________________________________________________________________________________________
www.midhafin.com
© 2020 MidhaFin

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1 of 19

FRM PART I May 2020

15-week STUDY PLAN

KEY used to represent the four modules:

FRM – Foundations of Risk Management

3) Common Univariate Random Variables

1) Multivariate Random Variables

2) Regression with Multiple Explanatory Variables

3) Stationary Time Series

4) Nonstationary Time Series

2) Exchanges and OTC Markets

4) Properties of Interest Rates (Part 1)

1) Using Futures for Hedging

2) Foreign Exchange Markets

3) Pricing Financial Forwards and Futures

4) Commodity Forwards and Futures

1) Properties of Interest Rates (Part 2)

2) Pricing Conventions, Discounting and Arbitrage

4) Bond Yields and Return Calculations

1) Applying Duration, Convexity and DV01

2) Modeling Non-Parallel Term Structure Shifts and Hedging

4) Mortgages and Mortgage Backed Securities

5) Anatomy of the Great Financial Crisis of 2007-09

1) Interest Rate Futures

3) Simulation and Bootstrapping

2) The Black-Scholes-Merton Model

3) Option Sensitivity Measures: The “Greeks”

1) Measuring Returns, Volatility and Correlation

2) Measures of Financial Risk

3) Calculating and Applying VaR

4) Measuring and Monitoring Volatility

1) The Building Blocks of Risk Management

2) How Do Firms Manage Financial Risk?

3) The Governance of Risk Management

4) Credit Risk Transfer Mechanisms

5) Measuring Credit Risk

1) External and Internal Credit Ratings

2) Country Risk: Determinants, Measures, and Implications

5) Risk Data Aggregation and Reporting Principles

1) Enterprise Risk Management and Future Trends

2) Learning from Financial Disasters

3) GARP Code of Conduct

4) Insurance Companies and Pension Plans

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