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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. Deterministic Simulation






2. Sample variance






3. BLUE






4. Chi - squared distribution






5. P - value






6. Efficiency






7. Continuously compounded return equation






8. Mean(expected value)






9. Standard normal distribution






10. Mean reversion






11. SER






12. Exponential distribution






13. Joint probability functions






14. Exact significance level






15. Multivariate Density Estimation (MDE)






16. Variance of X+Y






17. Hybrid method for conditional volatility






18. Economical(elegant)






19. GEV






20. Heteroskedastic






21. Standard variable for non - normal distributions






22. Hazard rate of exponentially distributed random variable






23. Persistence






24. Logistic distribution






25. Homoskedastic






26. Multivariate probability






27. Variance - covariance approach for VaR of a portfolio






28. Shortcomings of implied volatility






29. Critical z values






30. F distribution






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






32. Square root rule






33. Historical std dev






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






35. Bootstrap method






36. T distribution






37. Binomial distribution






38. Two requirements of OVB






39. Direction of OVB






40. Marginal unconditional probability function






41. Continuous random variable






42. Antithetic variable technique






43. POT






44. Variance of weighted scheme






45. Cholesky factorization (decomposition)






46. Difference between population and sample variance






47. Potential reasons for fat tails in return distributions






48. Kurtosis






49. Implied standard deviation for options






50. What does the OLS minimize?