pristine quant-frm demo

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FRM Part I Exam Preparation

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  • 1.www.edupristine.com FRM Part I Quantitative Analysis21st May 2011 Neev Knowledge Management Pristine

2. Seminar MaterialNot for SaleAgenda Introduction and context Understanding the FRM Examination Structure Introduction to Quantitative Analysis Probability Distributions Key Concept Checkers Complete Offering & Registration Next Seminar Neev Knowledge Management Pristine2www.edupristine.com 3. Pristine has been started by professionals with diverse experience inSeminar Material Not for Salefinancial services, IT and Auto who are alumnus of IITs & IIMsInnovative content To improveunderstanding & learning capability ofstudents. VisualizeFRM,VisualizeCFA as one of the bestselling productsTopic Expert Model (TEM ) Industryprofessionals bring invaluable industryperspective for students. Pool of 300+working professionals as active facultymembers with the likes of CFA regionaldirectors, Presidents of various banksPristine Classroom/ Online delivery (synchronous andFounded with an aimasynchronous) To increaseof creating worldreach and improve efficiency ofclass professionals in learning. Conducted 15+the area of finance batches with over 300 hours ofparticularly riskrecorded contentmanagement andTestimonial - 53% of the students join us on theinvestment bankingbasis of referral is a testimonial of the effective Effective training methodologies to improve the performancetraining methodologiesof the students and enhance the employability Neev Knowledge Management Pristine 3www.edupristine.com 4. Seminar Material Key Authorization Not for Sale GARP (2007-10) CFA Institute (2010-11)Authorized Training provider -FRM Authorized Training provider CFALargest player in India in the area of riskPristine is now the authorized training providermanagement training. Trained 1000+ studentsfor CFA Exam trainings . Pristine is largestin risk managementtraining provider for CFA in India with presenceacross seven major cities. PRMIA (2009-10)FPSB India (2010-11) Authorized Training provider PRM/ APRM Authorized Training provider -CFPSole authorized training for PRM Training in An authorized Education Provider for India. Largest player in India in the area of risk Chartered Financial Planner Charter. management training. Trained 1000+ studentsin risk management Neev Knowledge Management Pristine www.edupristine.com 5. Seminar Material Key Associations* Not for Sale Bank Of America J. P. Morgan (2010) Mizuho (2010)Continuum Solutions (2010)Financial Modeling in ExcelFinancial Modeling in Excel Financial Modeling in ExcelThe Real Assets Group were trained inBankers were using excel models thatAssociates were trained on valuation andExcel for infrastructure and real-estatethey could not understand. Conducted mergers and acquisitions modelingfinancial modeling in Excel trainings tobridge the gapFranklin TempletonCredit-Suisse India (2009)HSBC (2008)CFA (2010)Risk Management and Quant. Analysis Risk Management and Quant. AnalysisStudents were facing a gap in theIT Professionals of Credit-Suisse India New joinees in HSBC had a gap inoverall understanding of finance were trained on risk management.knowledge of Risk Management andtopics like corporate finance, FSA and quantitative skills. Conducted trainingsvaluation. Provided training for over(On campus) to bridge the gap100 hours to bridge the gap*Indicative List Neev Knowledge Management Pristine www.edupristine.com 6. Seminar MaterialKey Associations Not for SaleFMS Delhi (2010-11)IIM Calcutta (2010-11)BITS Pilani (2009)Financial Modeling in Excel Financial Modeling in Excel Workshops on Basics of FinanceFinal Year MBA students of Faculty ofStudents about to go for internships andManagement Studies, Delhi University Most of the students desire a careerjoin jobs found a gap in their grasp ofwere trained in financial modeling so as knowledge of excel for financialin finance. Conducted training forto prepare them better for a job in modeling. Conducted training for 75+ 350+ students with an average ratingfinance. students with an average rating of 4.5+ of 4.5+ NISM (2008) Derivatives workshop for Hedging IIT Delhi (2009) Sydneham College (2009)Corporate in Ludhiana incurred hugeCorporate financeFinancial Modeling in Excellosses because of derivative tradesStudents get placed in finance Students about to join jobs found a(for hedging). Conducted trainings forcompanies (UBS, GS, MS, etc) withgap in their grasp of excel for financialdirectors and CFOs for betterno understanding of the subject/ Job modeling. Conducted 40+ hours of understanding of derivative productsProfile. Conducted workshop to training and helped students be readybridge the gap for job Neev Knowledge Management Pristinewww.edupristine.com 7. Seminar MaterialNot for SaleTrainerPawan Prabhat, Director and Faculty, Pristine Pawan has experience in the area of risk management and investment banking. He has worked in the area of risk management and investment banking. Pawan is a co-founder of Pristine and has earlier worked in senior management positions in Crisil S&P and Standard Chartered Securities. He has also worked in the IT industry in companies like Geometric Software and Wipro. Pawan has successfully managed various IPOs worth more than 300 crores and has been the main point of contact with the promoters and the funds. Some of the IPOs in which has played instrumental roles areInsecticide IndiaNitin FireNelcastBarak ValleyPrecision PipesIndowind Pawan has done his MBA from IIM Indore and is a B. Tech from IIT Bombay in mechanical engineering. Pawan has published research paper and has co-authored articles on risk management in national finance daily- Hindu Business Line He is an avid reader and has been involved in dramatics, quizzing and bridge. Neev Knowledge Management Pristinewww.edupristine.com 8. Seminar MaterialNot for SaleAgenda Introduction and context Understanding the FRM Examination Structure Introduction to Quantitative Analysis Probability Distributions Key Concept Checkers Complete Offering & Registration Next Seminar Neev Knowledge Management Pristine8www.edupristine.com 9. Seminar Material Not for Sale FRM 2011AreaWeightFoundations of Risk Management20%Quantitative Analysis 20%Financial Markets and Products30%Valuation and Risk Models 30% 100 MCQ, 4 hours test in pen and paper, May21, 2011 Neev Knowledge Management Pristine Careers9 www.edupristine.com 10. Seminar MaterialNot for Sale FRM Exam Statistics2009 FRM Sample Paper 2010 FRM Sample Paper 12% Foundation of Risk 12%Foundation of Risk ManagementManagement28%35%Quantitative Analysis Quantitative Analysis 23%20% Financial Markets and Financial Markets and ProductsProducts Valuation and Risk Models Valuation and Risk Models 30%40% From the trend seen in FRM exam, 65%-70% of the questions come from two topics, FinancialMarkets and Products, and Valuation and Risk Model. In FRM Part-I, our estimate is that if a candidate manages to earn Quartile-1 scores in FinancialMarkets and Products, and Valuation and Risk Model, one should comfortably pass the exam even ifthe candidate does not do so well in QA and Foundation of Risk Management.Source: GARP Sample Paper Neev Knowledge Management Pristine 10 www.edupristine.com 11. Seminar Material Not for Sale Numerical vs Subjective Questions 2009 2010 9 12 8 10 7 68 56 4 34 22 1 00 Foundation of FinancialFoundation ofFinancial Quantitative Valuation and QuantitativeValuation and Risk Markets and RiskMarkets andAnalysis Risk Models AnalysisRisk Models ManagementProducts Management ProductsNumerical 3 6 84 Numerical 1 4511Subjective2 2 83 Subjective4 573 There is no fixed ratio of Numerical and subjective questions in any of the subject. In valuation and risk models, numerical questions are favorite to GARP To score in Quartile-1 in Financial Markets and Products, and Valuation and Risk Models you need tosolve as many questions as you can. Source: GARP Sample Paper Neev Knowledge Management Pristine11www.edupristine.com 12. Seminar MaterialNot for Sale Number of Questions Year-wise 18 16 14 Number of Questions 12 10 82010 62009 4 2 0Foundation of Quantitative FinancialValuation andRisk Analysis Markets andRisk ModelsManagement ProductsSource: GARP Sample Paper Neev Knowledge Management Pristine 12 www.edupristine.com 13. Seminar MaterialNot for SaleAgenda Introduction and context Understanding the FRM Examination Structure Introduction to Quantitative Analysis Probability Distributions Key Concept Checkers Complete Offering & Registration Next Seminar Neev Knowledge Management Pristine13 www.edupristine.com 14. Seminar Material Not for SaleQuantitative Analysis Quantitative AnalysisStatistics andProbabilitySampling &Regression EWMA Probability Distributions Hyp. Testing AnalysisGARCH Basics of Properties of Standard Linear EstimatingProbabilityDistributions ErrorRegression Volatility and Population Discrete/ Formulating Multiple Correlationand Sample ContinuousHypothesis Regressors Monte CarloStatistics Binomial Type I and II OLS Volatility Term DistributionErrors Error Analysis Structures Normal Heteroscedac Distribution ityReference Book - James Stock and MarkWatson, Introduction to Econometrics, BriefEdition (Boston: Pearson Education, 2008). Neev Knowledge Management Pristinewww.edupristine.com 15. Seminar Material Not for SaleProbability Distribution A Random Variable is a function, which assigns unique numerical values to all possible outcomes ofa random experiment under fixed conditions. A random variable is not a variable but rather a functionthat maps events to numbers Probability distribution describes the values and probabilities that a random event can take place. Thevalues must cover all of the possible outcomes of the event, while the total probabilities must sum toexactly 1, or 100% Example Suppose you flip a coin twice. There are four possible outcomes: HH, HT, TH, and TT. Let the variable X represent the number of H