This document provides an overview of common financial risk management notation and concepts. It defines population and sample, lists common Greek symbols, and explains key rate terms like interest rate, premiums, real risk-free rate, inflation, default risk, liquidity, and maturity. It also covers compounding frequency and how it impacts the calculation of future and present values.

1. Quant Primer – 2007 FRM Notation 1 3 Derivatives 4 Matrices 5 i rate, and compounding 2 Variance example

2. Notation

3. Notation

4. Notation

5. Greek symbols (common) Population “ we want it, but can’t get” Sample “ Use to draw inferences about the population”

6. Greek symbols (common)

7. Greek symbols

8. Greek symbols

9. Greek symbols

10. Greek symbols

11. Greek symbols Population variance

12. Greek symbols Sample variance

13. Interest rate (i) Premiums Real risk-free (riskless) rate

14. Interest rate (i) Premiums Real risk-free (riskless) rate Inflation

15. Interest rate (i) Premiums Real risk-free (riskless) rate Inflation Default risk (credit risk)

16. Interest rate (i) Premiums Real risk-free (riskless) rate Inflation Default risk (credit risk) Liquidity

17. Interest rate (i) Premiums Real risk-free (riskless) rate Inflation Default risk (credit risk) Liquidity Maturity

18. Future value of PV: compound frequency Interest may be paid annually, semiannually, quarterly, monthly, or even daily

19. Future value of PV: compound frequency Present Value (PV)

20. Present Value (PV) Future Value (PV)