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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. Variance of aX






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


3. Single variable (univariate) probability






4. Kurtosis






5. Multivariate probability






6. Cholesky factorization (decomposition)






7. Shortcomings of implied volatility






8. Potential reasons for fat tails in return distributions






9. Lognormal






10. Bootstrap method






11. Difference between population and sample variance






12. Antithetic variable technique






13. Time series data






14. Non - parametric vs parametric calculation of VaR






15. Skewness






16. Perfect multicollinearity






17. F distribution






18. Two assumptions of square root rule






19. Continuous random variable






20. Efficiency






21. Two ways to calculate historical volatility






22. Binomial distribution






23. Confidence interval (from t)






24. Significance =1






25. Mean(expected value)






26. Square root rule






27. GPD






28. SER






29. Two requirements of OVB






30. Homoskedastic only F - stat






31. Gamma distribution






32. Exponential distribution






33. Importance sampling technique






34. Standard error






35. Law of Large Numbers






36. Unstable return distribution






37. Pooled data






38. LFHS






39. Variance of aX + bY






40. Chi - squared distribution






41. Type II Error






42. Exact significance level






43. Hazard rate of exponentially distributed random variable






44. Homoskedastic






45. Variance of X+b






46. Central Limit Theorem(CLT)






47. Multivariate Density Estimation (MDE)






48. Standard error for Monte Carlo replications






49. T distribution






50. Control variates technique