Study market-risk estimation, VaR validation, correlation, hedging, term-structure models, volatility surfaces and FRTB before combining every FRM Part II domain.
Qualification facts verified against FRM Part II Market Risk Measurement and Management book scope. Last checked 2026-08-01. Official GARP FRM study-materials page. The supplied official book controls the 18-chapter learning content. Current GARP sources verify the Part II domain structure and official exam format.
Market Risk Measurement and Management practice inventory
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Which statement correctly defines Conceptual soundness?
Market Risk Measurement and Management moves from VaR and expected shortfall into non-parametric and extreme-value methods, model validation, PIT backtesting, correlation and copulas, regression hedging, term-structure models, volatility surfaces and the Fundamental Review of the Trading Book.
This course keeps all 18 chapters together as one book-level learning hub. Detailed summaries show the method and assumptions, 200 flashcards build active recall, the 220-item reference sheet supports fast review, and the AI tutor is grounded in the supplied Market Risk Measurement and Management source.
The five course mocks each contain 20 questions and run for 60 minutes, preserving the official Part II pace of three minutes per question. Mocks 1-4 contain 80 distinct questions; Mock 5 takes an equal sample from those papers. The 70% platform result is a book-level mastery target, not an official GARP pass mark.
The official FRM Part II exam contains 80 equally weighted multiple-choice questions across all Part II domains and lasts four hours. Complete the other printed books and the required Current Issues readings before full Part II practice.
| Assessment | Book-level topical practice: 20 multiple-choice questions in 60 minutes. The official FRM Part II exam covers all Part II domains with 80 equally weighted questions in four hours. |
| Duration | 60 Minutes |
| Feature | Exams Academy | Details |
|---|---|---|
| Access Period | Lifetime Access | One-time enrollment with no recurring fee |
| Practice Exams | Unlimited Retakes | Five 20-question timed book-level mock exams |
| Study Support | Instant 24/7 AI Tutor | Self-service AI support; live instructor support is not included |
| Cost | $89 (One-Time) | One-time payment with no recurring subscription |
Test all 18 chapters through five 20-question practice papers at the official Part II pace.
Clarify estimation, validation, dependence, hedging and regulatory relationships.
Strengthen memory with 200 flashcards and a 220-item searchable reference sheet.
Connect each model with its inputs, workflow, interpretation and limitation.
Use the same question bank in two different ways: build understanding with instant feedback, then switch to a realistic simulation when you are ready.
Choose an answer, see immediately whether it is right or wrong, and read the explanation before moving on.
Work against the official-style timer without revealing answers, then review your score and every explanation after submission.
P/L and return data, historical and parametric VaR, expected shortfall, quantiles, standard errors and QQ plots.
Historical simulation variants, density estimation, bootstrap intervals and method limitations.
GEV, peaks over threshold, generalized Pareto and dependent or multivariate extremes.
Exceptions, failure rates, model verification, conditional coverage and Basel rules.
Primitive factors, general and specific risk, fixed-income and derivative mapping.
Conceptual soundness, sensitivity analysis, confidence intervals, backtesting and benchmarking.
Probability integral transforms, uniformity diagnostics and full-distribution tests.
Correlation risk in investments, derivatives, market risk, credit risk and systemic concentration.
Economic-state behavior, volatility, mean reversion, autocorrelation and fitted distributions.
Copula functions, Gaussian dependence and correlated default-time simulation.
DV01 limitations, regression adjustments, multi-variable hedges and PCA.
Rate trees, replication, risk-neutral pricing, OAS and constant-maturity Treasury swaps.
Expected rates, risk premium, Jensen convexity and bond-return decomposition.
Normal-rate trees, Ho–Lee fitting, Vasicek mean reversion and half-life.
Time-dependent volatility, CIR and lognormal short-rate models.
One- and multi-factor Gaussian curve models, estimation and trading applications.
Smile, skew, implied distributions, term structures, surfaces and adjusted Greeks.
Trading-book boundary, standardized and internal-model approaches, liquidity horizons and PLA.
Preparation centre
Use these connected guides for the syllabus, exam format, booking and revision strategy.
No. This course covers the Market Risk Measurement and Management printed book. Candidates also need the other Part II books and the required Current Issues readings.
GARP describes Part II as 80 equally weighted multiple-choice questions completed in four hours across all Part II domains.
No. They are book-level topical practice. Full Part II practice should combine every domain and Current Issues in the official 80-question format.
The course preserves the official Part II pace of three minutes per question: 20 topical questions in 60 minutes.
No. GARP does not publish a fixed percentage pass mark. The platform uses 70% only as an internal mastery target.
No. Exams Academy is an independent education provider and is not affiliated with or endorsed by GARP.
You receive lifetime access to this course content with no recurring subscription fee.
Yes! Test your knowledge and see our AI tutor explanations with the free GARP FRM Part II — Market Risk Measurement and Management (Book 1) Sample Paper. It contains 15 questions from one named topic and is not a full mock exam or overall readiness assessment.
Master this FRM curriculum book with source-grounded summaries, active recall and clearly scoped book-level practice before combining it with the rest of the curriculum.
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