## 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. LFHS**

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

**3. Confidence interval for sample mean**

**4. Variance of X+Y**

**5. Antithetic variable technique**

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

**7. SER**

**8. Stochastic error term**

**9. Key properties of linear regression**

**10. Time series data**

**11. Cholesky factorization (decomposition)**

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

**13. Efficiency**

**14. K - th moment**

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

**16. Biggest (and only real) drawback of GARCH mode**

**17. Weibul distribution**

**18. Continuous representation of the GBM**

**19. Test for statistical independence**

**20. Regime - switching volatility model**

**21. Exponential distribution**

**22. Control variates technique**

**23. Implied standard deviation for options**

**24. Variance of sample mean**

**25. Beta distribution**

**26. Block maxima**

**27. Implications of homoscedasticity**

**28. Central Limit Theorem(CLT)**

**29. Sample covariance**

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

**31. Continuously compounded return equation**

**32. Standard variable for non - normal distributions**

**33. Sample variance**

**34. Central Limit Theorem**

**35. What does the OLS minimize?**

**36. Variance(discrete)**

**37. Logistic distribution**

**38. Confidence interval (from t)**

**39. Four sampling distributions**

**40. Reliability**

**41. Confidence ellipse**

**42. Exact significance level**

**43. Significance =1**

**44. Type I error**

**45. SER**

**46. GEV**

**47. T distribution**

**48. Variance of sampling distribution of means when n<N**

**49. P - value**

**50. Two drawbacks of moving average series**