What is the Difference Between FRM® Certification and CFA® Charter? All you need to Know
If you are planning on joining the finance world and working as a financial analyst or with investments, the FRM certification or CFA charter could help you achieve your career goals. To make the right choice, you need to know…
5 Key Benefits Of FRM Certification
The FRM (Financial Risk Manager) is one of the most recognized risk management designations issued by the Global Association of Risk Professionals (GARP) to advance a financial services career. Risk manager plays an essential role in financial services. A risk…
Difference between MBA, Masters in Finance (MF), CFA® Program and FRM
Now the world is going digital. This increase in online tools, services, and various platforms has led to a high jump in material available on-the-line. Since you’ve come to our page, you are probably a student, wondering how to succeed…
Evolution of Portfolio Theory Efficient Frontier to SML (Calculations for CFA® and FRM® Exams)
Evolution of Portfolio Theory In theory, we could form a portfolio made up of all investable assets, however, this is not practical and we must find a way of filtering the investable universe. A risk-averse investor wants to find the…
Timelines – Your Best Friends (Calculations for CFA® and FRM® Exams)
What is a timeline? A timeline is an physical illustration of the amount and the timing of cash flows associated with an investment project. Some of the applications of a timeline include: Quantitative Methods: Time Value of Money Capital Budgeting…
Beta and CAPM
Quick Reference: CAPM Beta Formula Formula: $$ \beta = \frac{\text{Cov}\left(\text{R}_{\text{i}}, \text{R}_{\text{m}}\right)}{\text{Var}\left(\text{R}_{\text{m}}\right)} $$ $$\begin{array}{c|l} \textbf{Term} & \textbf{Meaning} \\ \hline \text{R}_{\text{i}} & \text{Return of individual asset} \\ \hline \text{R}_{\text{m}} & \text{Return of the market portfolio} \\ \hline \text{Cov}\left(\text{R}_{\text{i}}, \text{R}_{\text{m}}\right) & \text{Covariance between…
Demystifying Forward Rate Agreements (Calculations for CFA® and FRM® Exams)
A forward rate agreement (FRA) is a cash-settled over-the-counter (OTC) contract between two counterparties, where the buyer is borrowing (and the seller is lending) a notional sum at a fixed interest rate (the FRA rate) and for a specified period starting at…
Best Tips and Tricks for Preparing and Successfully Passing FRM Exams
Passing your Financial Risk Management (FRM) exam on the first try isn’t impossible – it is however quite difficult. FRM exams are detailed and involve complex calculations and thinking from each exam candidate. A financial risk manager is expected to…
Options Payoffs and Profits (Calculations for CFA® and FRM® Exams)
Understanding call and put option payoffs is a must for mastering derivatives in the CFA® or FRM® exams—and for real-world trading strategies. This guide breaks down option payoff and profit formulas, shows you how to calculate each, and includes cha1rts…
Bond Valuation (Calculations for CFA® and FRM® Exams)
Bond valuation is an application of discounted cash flow analysis. The general approach to bond valuation is to utilize a series of spot rates to reflect the timing of future cash flows. Value, Price, and TVM Value can be described as…
