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FRM Foundations Of Risk Management Quantitative Methods

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This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Historical std dev

2. Cholesky factorization (decomposition)

3. R^2

4. Shortcomings of implied volatility

5. Test for unbiasedness

6. Sample covariance

7. Marginal unconditional probability function

8. Chi - squared distribution

9. Law of Large Numbers

10. Maximum likelihood method

11. Bernouli Distribution

12. Deterministic Simulation

13. Two ways to calculate historical volatility

14. Extreme Value Theory

15. Discrete random variable

16. P - value

17. Lognormal

18. Implied standard deviation for options

19. Importance sampling technique

20. Control variates technique

21. Empirical frequency

22. Stochastic error term

23. Persistence

24. Gamma distribution

25. Binomial distribution equations for mean variance and std dev

26. Sample variance

27. Direction of OVB

28. Cross - sectional

29. Mean reversion in variance

30. Expected future variance rate (t periods forward)

31. Hazard rate of exponentially distributed random variable

32. Central Limit Theorem(CLT)

33. Least squares estimator(m)

34. Significance =1

35. Antithetic variable technique

36. POT

37. Non - parametric vs parametric calculation of VaR

38. GPD

39. Normal distribution

40. Variance of aX

41. Mean reversion in asset dynamics

42. Critical z values

43. Regime - switching volatility model

44. Covariance calculations using weight sums (lambda)

45. Limitations of R^2 (what an increase doesn't necessarily imply)

46. Hybrid method for conditional volatility

47. Binomial distribution

48. Homoskedastic only F - stat

49. Variance of weighted scheme