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FRM Foundations Of Risk Management Quantitative Methods

Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

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. Standard error






2. Unstable return distribution






3. Mean(expected value)






4. Cholesky factorization (decomposition)






5. Implied standard deviation for options






6. Mean reversion in asset dynamics






7. Statistical (or empirical) model






8. GEV






9. Monte Carlo Simulations






10. Least squares estimator(m)






11. Hybrid method for conditional volatility






12. Four sampling distributions






13. Test for unbiasedness






14. F distribution






15. Poisson distribution equations for mean variance and std deviation






16. Homoskedastic only F - stat






17. Lognormal






18. Beta distribution






19. Direction of OVB






20. Non - parametric vs parametric calculation of VaR






21. Tractable






22. Deterministic Simulation






23. Variance of aX + bY






24. Difference between population and sample variance






25. Bootstrap method






26. Discrete random variable






27. Unbiased






28. Time series data






29. Importance sampling technique






30. Variance(discrete)






31. Standard variable for non - normal distributions






32. WLS






33. Hazard rate of exponentially distributed random variable






34. Overall F - statistic






35. Type II Error






36. LFHS






37. Kurtosis






38. Square root rule






39. SER






40. Marginal unconditional probability function






41. Reliability






42. Confidence interval (from t)






43. Pooled data






44. Biggest (and only real) drawback of GARCH mode






45. Variance of sample mean






46. Variance of weighted scheme






47. Historical std dev






48. Standard error for Monte Carlo replications






49. Variance of X+Y






50. Multivariate Density Estimation (MDE)