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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. Stochastic error term






2. Central Limit Theorem(CLT)






3. Regime - switching volatility model






4. Continuous random variable






5. Persistence






6. Monte Carlo Simulations






7. Historical std dev






8. Cholesky factorization (decomposition)






9. Variance(discrete)






10. Inverse transform method






11. R^2






12. EWMA






13. Covariance






14. Pooled data






15. Two ways to calculate historical volatility






16. P - value






17. Time series data






18. Discrete random variable






19. Extreme Value Theory






20. Result of combination of two normal with same means






21. Four sampling distributions


22. Exact significance level






23. Importance sampling technique






24. Direction of OVB






25. Variance of X - Y assuming dependence






26. LAD






27. Multivariate probability






28. Hazard rate of exponentially distributed random variable






29. Binomial distribution equations for mean variance and std dev






30. Simulation models






31. Conditional probability functions






32. GARCH






33. SER






34. Implications of homoscedasticity






35. Perfect multicollinearity






36. Binomial distribution






37. Mean reversion in variance






38. Type II Error






39. Exponential distribution






40. Variance of X+Y assuming dependence






41. Extending the HS approach for computing value of a portfolio


42. Variance of X+b






43. Variance of X+Y






44. Discrete representation of the GBM






45. Confidence interval (from t)






46. Simplified standard (un - weighted) variance






47. K - th moment






48. Variance of sampling distribution of means when n<N






49. Efficiency






50. Beta distribution