Financial Risk Manager Part 1

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Explanation:

We wish to determine $P(C_2 \mid C)$

P(C_2 \mid C) = \frac{(P(C_2) \times P(C \mid C_2))}{[P(C_2) \times P(C \mid C_2) + (P(C_1) \times P(C \mid C_1)) + (P(C_3) \times P(C \mid C_3)) + (P(C_4) \times P(C \mid C_4))]}

= \frac{0.21 \times 0.42}{[(0.21 \times 0.42) + (0.22 \times 0.40) + (0.14 \times 0.39) + (0.44 \times 0.31)]}

= \frac{0.0882}{0.0882 + 0.088 + 0.0546 + 0.1364}

= 24.02\%

Explanation:

We wish to determine $P(C_2 \mid C)$

P(C_2 \mid C) = \frac{(P(C_2) \times P(C \mid C_2))}{[P(C_2) \times P(C \mid C_2) + (P(C_1) \times P(C \mid C_1)) + (P(C_3) \times P(C \mid C_3)) + (P(C_4) \times P(C \mid C_4))]}

= \frac{0.21 \times 0.42}{[(0.21 \times 0.42) + (0.22 \times 0.40) + (0.14 \times 0.39) + (0.44 \times 0.31)]}

= \frac{0.0882}{0.0882 + 0.088 + 0.0546 + 0.1364}

= 24.02\%

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Country of residency	Probability of passing the FRM Part 1 exam	A portion of total candidates
United States	0.40	0.22
India	0.42	0.21
Canada	0.39	0.14
Other	0.31	0.44

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Last updated: May 21, 2026 at 04:19

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