## 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. Covariance calculations using weight sums (lambda)**

**2. LFHS**

**3. Homoskedastic only F - stat**

**4. K - th moment**

**5. WLS**

**6. Empirical frequency**

**7. Type I error**

**8. Variance - covariance approach for VaR of a portfolio**

**9. Panel data (longitudinal or micropanel)**

**10. Monte Carlo Simulations**

**11. Result of combination of two normal with same means**

**12. Sample variance**

**13. Significance =1**

**14. Reliability**

**15. Multivariate Density Estimation (MDE)**

**16. Antithetic variable technique**

**17. Discrete random variable**

**18. Extending the HS approach for computing value of a portfolio**

**19. Kurtosis**

**20. Historical std dev**

**21. F distribution**

**22. Bootstrap method**

**23. Time series data**

**24. Exact significance level**

**25. BLUE**

**26. Persistence**

**27. Importance sampling technique**

**28. Continuous random variable**

**29. Difference between population and sample variance**

**30. Least squares estimator(m)**

**31. Implied standard deviation for options**

**32. Law of Large Numbers**

**33. ESS**

**34. Two ways to calculate historical volatility**

**35. Normal distribution**

**36. Two requirements of OVB**

**37. Tractable**

**38. Logistic distribution**

**39. Lognormal**

**40. Hazard rate of exponentially distributed random variable**

**41. LAD**

**42. GPD**

**43. Implications of homoscedasticity**

**44. Statistical (or empirical) model**

**45. EWMA**

**46. Chi - squared distribution**

**47. Test for unbiasedness**

**48. Continuous representation of the GBM**

**49. Perfect multicollinearity**

**50. Standard error**