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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. 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