## 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. 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?**