Google, IBM & Meta Certificates — All 10,000+ Courses at 40% Off
One annual plan covers every course and certificate on Coursera. 40% off for a limited time.
Get Full Access
This video lesson covers Regression Hedging and Principal Component Analysis for the FRM Part 2 2025 exam (Book 1, Chapter 11). Learn about the limitations of DV01-neutral hedging strategies and discover how regression hedging can provide improved results for bond positions. Master the calculation of regression hedge adjustment factors (beta) and determine the face value requirements for both single and multi-variable regression hedges. Explore the differences between level and change regressions, understand why regression hedges differ from reverse regression hedges, and gain insights into principal component analysis for constructing effective hedging portfolios. This 41-minute tutorial from GARP-Approved provider AnalystPrep covers all essential concepts needed to satisfy the learning objectives for this chapter of the FRM syllabus.
