Hard FRM Part 1 Practice Questions

93 free hard-difficulty FRM Part 1 questions, drawn live from KomFi's calibrated bank. These are the items that separate top scorers — every one carries a full explanation and trap analysis once you sign in.

1. What is the bank's leverage ratio under Basel III?
2. A fraud-detection classifier is tested on a dataset where 1% of transactions are fraudulent. The model's confu
3. If the oil market shifts from backwardation to a persistent contango, which of the following best describes th
4. An investor holds a $10 million portfolio of two assets. Asset A has a weight of 60% and a daily volatility of
5. If at the time of delivery S_1 = $72 and F_1 = $74, while the hedge was entered at F_0 = $78, what is the basi
6. What is the no-arbitrage price of a six-month forward contract on the index?
7. What is the corresponding 10-day 99% VaR assuming daily returns are independent?
8. A $200 million portfolio has a 1-day 99% VaR of $8 million. If the portfolio comprises a position with 30% wei
9. Using a normal approximation to the binomial distribution, what is the z-score if the bank observes 8 exceptio
10. A Mortgage-Backed Security (MBS) pool has two loans: Loan 1 ($400,000, 6.5% coupon, 300 months) and Loan 2 ($1
11. An analyst is concerned that a time-series regression of equ… — If the analyst ignores this and uses standard
12. An analyst reports a 95% confidence interval for a hedge rat… — Based on this interval, can the null hypothesi
13. A regression coefficient has a p-value of 0.024. Which of the following is the most accurate interpretation re
14. A researcher finds that as sample size n increases while holding s^2 and the variation in X constant, the stan
15. If the model is correctly calibrated, what is the probability of observing exactly 5 exceptions using the bino
16. Given the parameters ω = 0.000002, α = 0.04, and β = 0.94, and a current daily volatility of 2.0%, what is the
17. A bank holds a large position in an OTC interest rate swap and is concerned about the risk that the counterpar
18. As the option approaches expiry with the stock price very close to $100, what happens to the option's Delta?
19. Given a risk-free rate of 4% and storage costs of 2%, what does the 'backwardation' in this market primarily s
20. What is the dirty price of the bond using the 30/360 day-count convention?
21. If the stock price is $100, the strike is $100, the risk-free rate is 5%, and the volatility is 25%, what is t
22. An analyst is comparing two I(1) price series. If they are found to be cointegrated, which modeling approach i
23. An investor buys a 3-month American call option on a non-div… — Why is it generally sub-optimal to exercise th
24. If the 2-year rate rises by 30 basis points and the 10-year rate falls by 20 basis points (with the 5-year rat
25. What is the $1-year forward price of the stock?
26. A trader creates an iron condor by selling a 90 put, buying… — What is the maximum loss for this strategy?
27. What is the most likely outcome?
28. Calculate the probability of survival for an obligor over three years if the constant hazard rate (λ) is 4% pe
29. If the yields in the Treasury market increase significantly and the yield curve undergoes a parallel upward sh
30. In a 'Dollar Roll' transaction, the investor:

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