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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. Hazard rate of exponentially distributed random variable






2. Confidence interval (from t)






3. Panel data (longitudinal or micropanel)






4. SER






5. Poisson Distribution






6. Standard normal distribution






7. Covariance calculations using weight sums (lambda)






8. Logistic distribution






9. Variance of X+Y assuming dependence






10. Marginal unconditional probability function






11. Multivariate Density Estimation (MDE)






12. BLUE






13. Hybrid method for conditional volatility






14. EWMA






15. i.i.d.






16. Perfect multicollinearity






17. Covariance






18. Maximum likelihood method






19. Mean reversion






20. Four sampling distributions


21. Confidence ellipse






22. Heteroskedastic






23. Sample mean






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






25. Economical(elegant)






26. Central Limit Theorem(CLT)






27. Efficiency






28. Variance of X+Y






29. Discrete representation of the GBM






30. Cross - sectional






31. GEV






32. Type II Error






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


34. Sample correlation






35. Pooled data






36. Tractable






37. Direction of OVB






38. Continuous representation of the GBM






39. Single variable (univariate) probability






40. Continuously compounded return equation






41. GARCH






42. Sample variance






43. Continuous random variable






44. Bootstrap method






45. ESS






46. Antithetic variable technique






47. Empirical frequency






48. T distribution






49. Central Limit Theorem






50. GPD