Is there a Part I formula sheet?

No. GARP says formula sheets are not provided with the exam, so you need the formulas by heart and the judgment to pick the right one. Below are the ones our questions use most.

Formula sheet	Not provided
Scratch paper	Two sheets and a pencil
Calculator	Approved business calculators only
Questions	100 in 4 hours

Foundations of Risk Management

Measure	Formula
CAPM expected return	E(R) = Rf + beta x (E(Rm) - Rf)
Sharpe ratio	(Rp - Rf) / sigma_p
Treynor ratio	(Rp - Rf) / beta_p
Jensen's alpha	Rp - [Rf + beta_p x (Rm - Rf)]
Information ratio	(Rp - Rb) / tracking error

Quantitative Analysis

Measure	Formula
Bayes' rule	P(A \| B) = P(B \| A) x P(A) / P(B)
Portfolio variance, two assets	w1^2 s1^2 + w2^2 s2^2 + 2 w1 w2 rho s1 s2
OLS slope	Cov(X, Y) / Var(X)
EWMA variance	lambda x s^2(n-1) + (1 - lambda) x u^2(n-1)
GARCH(1,1) long-run variance	omega / (1 - alpha - beta)

Financial Markets and Products

Measure	Formula
Forward price, with a yield	F0 = S0 x e^((r - q) x T)
Minimum variance hedge ratio	h = rho x sigma_S / sigma_F
Futures contracts to hedge	N = h x Q_A / Q_F
Put-call parity	c + K x e^(-rT) = p + S0
Forward rate (continuous)	(R2 x T2 - R1 x T1) / (T2 - T1)

Valuation and Risk Models

Measure	Formula
Parametric VaR	z x sigma x value, scaled by sqrt(T) for a horizon of T days
Price change from duration and convexity	dP / P = -D_mod x dy + 0.5 x C x dy^2
DV01	D_mod x P x 0.0001
Expected credit loss	PD x LGD x EAD
Black-Scholes-Merton call	c = S0 N(d1) - K e^(-rT) N(d2)

How to learn them

Learn each formula with the question that uses it: the conventions in a stem (compounding, horizon, sample or population) tell you which version applies. Our lessons teach each one on a worked problem first, and every practice answer shows every number.

Try 4 questions

Question 1The Black-Scholes-Merton model

A non-dividend-paying stock trades at $100. A European option has a strike price of $95 and six months to expiry. The risk-free rate is 4% (continuous) and volatility is 30% a year. Using ln(100/95) = 0.0513 and √(0.5) = 0.7071, the value of d1 in the Black-Scholes-Merton model is closest to:

Question 2Pricing forwards and futures

A stock that pays no dividends trades at $48.00. The risk-free rate is 4% per annum with continuous compounding. The nine-month forward price is closest to:

Question 3Duration, DV01 and convexity

A position holds $10 million face value of a bond priced at 98.50 per 100 of face. The bond's modified duration is 5.4. The position's DV01, the dollar value change for a one basis point change in yield, is closest to:

Question 4Volatility and correlation: EWMA and GARCH

A risk manager uses an EWMA model with lambda = 0.94. Yesterday's volatility estimate was 1.5% a day, and yesterday's return was −2.4%. Today's daily volatility estimate is closest to:

Next step

Take the free diagnostic Try the free value at risk lesson

GARP's FRM frequently asked questions

Questions people ask

Is a formula sheet provided on Part I?

No. GARP's FAQ says formula sheets are not provided with the exam.

What can I bring into the exam?

A GARP-approved business calculator, your ID and a printed appointment confirmation. Two sheets of scratch paper and a pencil are provided.

How do I know which formulas to learn?

GARP points candidates to its learning objectives: statements that begin with calculate, compute or derive usually mean a formula to commit to memory.