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FRM Foundations Of Risk Management Quantitative Methods

  • Answer 50 questions in 15 minutes.
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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. Variance of weighted scheme


3. Weibul distribution

4. R^2

5. Variance(discrete)

6. Priori (classical) probability

7. LAD


9. ESS

10. Antithetic variable technique

11. Significance =1

12. What does the OLS minimize?

13. Adjusted R^2

14. GPD

15. LFHS

16. Statistical (or empirical) model

17. Beta distribution

18. Standard error

19. Pooled data

20. Tractable

21. Hazard rate of exponentially distributed random variable

22. Continuously compounded return equation

23. Perfect multicollinearity

24. Continuous random variable

25. Lognormal

26. Two drawbacks of moving average series

27. Kurtosis

28. Variance of X+Y assuming dependence

29. Mean reversion

30. Poisson distribution equations for mean variance and std deviation

31. P - value

32. Sample correlation

33. Exponential distribution

34. Potential reasons for fat tails in return distributions

35. SER

36. Multivariate probability

37. Deterministic Simulation

38. Unconditional vs conditional distributions

39. Confidence ellipse

40. Heteroskedastic

41. Test for unbiasedness

42. Homoskedastic only F - stat

43. Covariance calculations using weight sums (lambda)

44. Importance sampling technique

45. Central Limit Theorem(CLT)

46. Implications of homoscedasticity

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

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

49. Homoskedastic

50. Least squares estimator(m)