## Test your basic knowledge |

# 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)**